My wife and I live in Southern California and went to Uruguay to explore it as a place to retire after doing much research. We stayed two weeks, drove many miles, talked to lots of people, went to an ex-pat meeting, stayed both in beach towns and way out in the country and enjoyed Uruguay very much. But the days of living cheaply in Uruguay, at least for Americans, I believe are no more. Prices have gone way up there in recent years while the dollar has sunk against their currency. One would have to move there for other reasons, such as the lovely people, the low stress factor, the clean environment - to name a few. Prices we saw in supermarkets were comparable to where we live and where we live (Orange County) is expensive. Quality is not as good with only a few exceptions, such as dairy. Great fruits and vegetables are hard to find, at least year round, so vegetarians will need to work at it. Clothing, except inferior Chinese stuff, is very pricey. Gas is about $7 a gallon currently, and cars are insanely expensive. Lunch or dinner at a good restaurant is comparable to Newport Beach both in quality and in price and in many cases higher in price. Montevideo is a fine city, but we would not want to live there, that's just us. The country side is beautiful, endless green fields and few people. You don't see the bars on too many windows in the country side, not like most of S.A. It feels very safe, the people are very nice, they drive better than many people do in the US, very polite, almost no aggression and no honking at all, except in the city. If you don't speak some Spanish, better get going on that, this is a Spanish speaking country, with a beautiful dialect by the way. I know two weeks is not a long time, but we sincerely questioned locals, ex-pats, everyone we could about the realities of living there, and explored prices in different types of stores and real estate prices, taxes and utility prices in several places. About the only advantage economically is that you can still buy a house near the beach for much less than it would cost in California. Houses in the country are even better, price-wise. Uruguay is very functional, lots of good highways along with many dirt roads. I love it, but will need to think twice before selling our home to move there - the main advantage is that it is as beautiful as California with much fewer people and the people, once again, are just lovely - something very special about them, a softness that is hard to describe and easy to fall in love with. Can you live cheaply in Uruguay? I suppose it can be done - but if you are looking for a place that can afford you the same quality of life you have at home at a greatly reduced cost, it is my opinion you will need to look elsewhere. If any ex-pats who are living there feel my views are in error or if you have any tips on how to live well in Uruguay on an average retiree's income, please let me know. Make no mistake,I love Uruguay - it is a wonderful country.