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One Month’s Living Expenses: Leon, Nicaragua

When Elisha and I decided to move to Nicaragua we knew that we would need to be on a budget – and believe it or not it was something we had never done before.

Elisha’s budget was always based on spending any extra cash that she had, while I saved whatever extra money I felt I didn’t need.  That being said we have always lived below our means and have never been extravagant people.

Although we’ve been told by a few people that a budget of $1,200 USD per month in Nicaragua is quite high this is the amount we agreed upon.  

We figured it would take some time to find out which restaurants, markets, shops and grocery stores would have the best deals and accepted the fact that December and January would be “learning months”.  We weren’t surprised to find out that were were over budget for the month of January.  

Total expenditures for the month came in at $1,201 USD.  

We learned a few things things this month and have decided to make a number of changes.

First and foremost, we are going to prepare more of our own meals and have fruit on hand for breakfast.  When we reviewed our detailed spreadsheet of the month’s expenses we realized we ate out 3 meals per day, more often than not.  Although the nearly 50 meals we had out were cheap ($280 USD), they weren’t necessarily healthy for the waistline or the budget.

Another change will be our drinking.  Apparently we’ve been celebrating because not a day went by in January where we didn’t have a cerveza or two.  Even though our total expenditure for alcohol was just shy of $160 USD, we will make a couple of changes here as well.  We plan to cut back some and be smarter about where we buy our liquor.  Instead of paying 100 cordobas for a 375 ml bottle of rum, we will buy the 2 litre combo pack at Pali for 189 cords. And instead of paying 18 cords at the grocery store for a 355 ml can of beer we will buy a case of 12 litres at a cost of only 36 cordobas per bottle.

We spent $205 USD on groceries.  With a commitment to eat in more often we expect this amount to go up slightly for the month, but since we’ve figured out the best places to shop we aren’t expecting a huge increase.

$32 USD was the amount we paid to purchase a cell phone and talking minutes for the month. For February we have purchased a package that cost $7 USD that should last through to the end of the month.  $60 USD went to Amazon and iTunes for books, music and iPAD apps.  $30 USD went to transportation (bus and taxi fares). We spent $52 USD on a nice dinner out to celebrate our 5th year anniversary.  We enjoyed a delicious meal with 2 appetizers, a main course of filet mignon, a nice bottle of Italian wine AND pecan pie for dessert.  A great night out and worth every penny we spent!

Monthly recurring fixed expenses include $300 for rent and $80 for Spanish lessons. Besides a few random incidentals, this is what we spent our money on for the month of January. 

Although our friend Glyn lives on $300 a month (and thinks we are living the life of rock stars and drinking champagne every night) we happen to think we did a fine job with our first attempt at following a budget!

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