Expats in Mexico Have the Highest Levels of Financial Satisfaction

The cost of living really can make or break the expat experience. Expats who are happy with their financial position tend to have much higher levels of life satisfaction and wellbeing, opening the doorway to making the most of living and working overseas. According to researchers, those who do not have to worry about making ends meet also suffer from less marital stress and lower rates of depression, so the benefits of an affordable city could be more significant than many realise. We at MoneyTransfers.com have looked at the best and worst cities in the world for expats’ pockets:

The Best Cities for Expats Finances

1. Mexico City

Expats in Mexico City have the highest levels of financial satisfaction. Although the Latin American city does not quite take first place for the cost of living (it is ranked in 6th place, with the average monthly outgoings for a family of four at $3,203.91 USD), expats who call it home are more likely to be happy with their financial situation than those living anywhere else in the world. In fact nearly three out four respondents in Mexico City (73%) rated their financial situation as positive, compared to a worldwide average of 60%. Expats are also more likely to feel that their household income offers them a comfortable life abroad, with 87% agreeing with the statement. This is perhaps unsurprising because the vibrant city leads in terms of nightlife and dining options, ranked at number one in the world for both categories, and with these opportunities well within the financial reach of expats the appeal of Mexico City is plain to see.

2. Bangkok

Income goes far in Bangkok, so it’s easier for expats to afford a comfortable life. The city was voted as the 2nd best in the world for its low cost of living, with 86% reporting that their disposable income is enough to live well, and a further three out of five even going so far enough to say that it is more than enough to lead their desired lifestyle. Over a third of expats living in Bangkok have an annual gross income of $100,000 USD, and with the average monthly living costs for a family of four coming in at just $3,291.45 this is plenty to get by on. It isn’t just the financial freedom that draws expats to Bangkok: the friendliness of the Thai people and their embracing culture led 78% of expats to confirm that they feel at home in Thailand, compared with the global average of 62%.

3. Valencia

Valencia was ranked as the best city in the world for expats, and also scores very highly for its favourable cost of living, coming in third on the personal finance index. A remarkable 83% of expats are happy with the cost of living in this Spanish city, which is 38 percentage points more than the global average of 45%. While none of the respondents in the InterNations study mentioned financial considerations as their primary reason for moving to Valencia, it is undoubtedly a significant bonus. The destination has the largest share of retirees – 26% compared to the global average of 10% - and this is undoubtedly the perfect place to sit back in the sun and worry about nothing.

Jonathan Merry, CEO of MoneyTransfers, was interested to see that most of the top ten cities are located in either Northern Europe or Southeast Asia, while Western and Central Europe and North America dominates the bottom rankings.

While the top five cities can all attribute their high rankings in the financial freedom index to their equally high rankings in the cost of living index, Mexico City is an outlier, not only in terms of geography but also because it is the expats’ satisfaction levels rather than the cost of living which is driving the high ranking.

Jonathan Merry, CEO of MoneyTransfers.com

Amongst the bottom five of the 50 cities similar trends emerge: four of them can attribute their low rankings on the personal finance index to high living costs, while Johannesburg (47th) can attribute its low score to expats’ unhappiness with the local job market, and scores as the worst city in the world in terms of Quality of Life. Here are the three worst destinations for expats in terms of financial freedom:

The Worst Cities for Expats Finances

1. Vancouver

Vancouver ranks 50th out of 50 cities on the Personal Finance Index, with expats particularly unhappy about the high cost of living in the city. 69% rate this cost negatively, which is almost twice the global average of 35%. Many expats complain that there simply isn’t enough money left over after paying bills. With average monthly outgoings of $5,664 USD for a family of four, Vancouver is more expensive than 86% of all cities worldwide, and half of all expats state that their disposable household income simply isn’t enough for a comfortable life.

2. London

70% of all expats living in London believe that the cost of living is just too high. As well as the general cost of living, expats are disgruntled with the lack of available housing and gloomy weather. Overall, 25% of all London expats are dissatisfied with their financial situation, and while 73% of respondents rate their career prospects in the Square Mile highly, many feel that the costs simply outweigh the benefits.

3. Paris

Paris may be the city of art and culture, but in reality few can afford it. 62% of expats rate the living costs negatively, with 35% report being very unhappy with their financial situation and unable to lead a comfortable life. It isn’t just the finances that are getting people down in the City of Love; expats do not, on the whole, feel welcome in Paris with more than a third complaining that Parisians are largely unfriendly to foreign residents.