'The American Dream Is A Sham' Says 48-Year-Old Former Teacher Living In Mexico Who Took A 37% Paycut

Once seen as a symbol of success and prosperity, the American dream is losing its allure for many. Adalia Aborisade, a 48-year-old former teacher from Texas, is among the more than eight million Americans who have chosen a path outside the United States. She began traveling in 2017 and moved to Mexico City in 2020. While the change was drastic, she feels she made the right decision and questions whether the American dream is truly attainable or even desirable. 

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CNBC highlighted Aborisade's story, which is a striking example of why many Americans are choosing geographic arbitrage to better their lives. Geographic arbitrage, commonly referred to as geo-arbitrage, involves maintaining one’s income while moving to a place with a lower cost of living. Even though Aborisade took a pay cut, she's still enjoying the benefits of lower costs and more freedom. 

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Aborisade earned $60,000 per year as a teacher in Texas, but her living expenses and the 60-hour work weeks made life stressful. Her mortgage alone was $2,612 a month. "The American dream is a sham," she told CNBC Make It. "I had the house, the cars, the kids. I did all of that, but even achieving those things, it still seemed like it wasn't enough."

Moving to Mexico and becoming an entrepreneur allowed her to significantly improve her quality of life, even with a 37% pay cut. 

One of the most compelling parts of Aborisade's story is how she can save and invest despite not having a six-figure income. Before moving to Mexico, she saved $545,000, enough to generate $21,800 annually by following the 4% rule. The average annual salary in Mexico is about $17,000, so she can live comfortably even without the additional income from her business. 

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The financial benefits of moving to Mexico were just the beginning for Aborisade. She expressed that her anxiety and stress have significantly gone down – particularly around issues like racism and the threat of gun violence. Plus, health care costs are substantially lower – only $1,800 annually.

While she may not have been able to achieve her vision of the American dream in the U.S., Aborisade has found her version of that dream in Mexico. "I have found and ultimately achieved the American dream outside the U.S., here in Mexico, where I can have a life I enjoy and not be stressed out all of the time."

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Aborisade is not the only American who has reaped the financial benefits of a new life in Mexico. Around 1.6 million Americans live in Mexico to enjoy more affordable housing, a lower cost of living (groceries, leisure activities, personal care), more affordable health care, and better employment opportunities. 

As more people consider alternatives to the traditional American dream, consulting a financial advisor can provide valuable insights into whether geographic arbitrage might be a viable option for improving financial stability and quality of life.

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