I initially wrote this article back in 2014, and updated it over the years to prove that you can live in Romania with a budget of €500 per month or even $500. (From now on, I will only use Euros to keep things easier to follow).
I am updating this article again in 2024 to say that it is no longer possible to make ends meet on such a low budget, even in a cheap country like Romania (which isn’t as cheap as it used to be).
The truth is that, most likely, I will soon have to update my article about living on $1,000 per month in Romania, also saying that it’s no longer possible. But we’re still not there yet.
Let’s see, though, how things stand today and why a budget of €500 per month in Romania is no longer a valid option.
The cost of living skyrocketed in Romania
In 2022, as well as 2023, Romania saw a double-digit inflation rate (13,8% and 10,40% respectively – you can check the data on the Romanian Institute of Statistics).
So far, in 2024, Romania still has one of the highest inflation rates in the European Union and, even though we’re no longer seeing double-digits, it’s still over 5% at the moment of writing.
At the same time, the Euro to Romanian Leu, as well as the USD to Romanian Leu rates remained the same since 2022. In other words, your €500 in 2022 could’ve purchased A LOT more than they can today. And even then, it was already a low budget for monthly living.
Looking at the big picture, here is the evolution of my family’s expenses over the years (we’re a 3-person family, not paying rent/mortgage and without any additional debt):
- in 2015, we averaged 1,146 Euros/month
- in 2019, we averaged 1,283 Euros/month
- in 2023, we spent €1,383/month (spoiler: this year, it’s more so far)
While our spending didn’t increase as much as inflation rates show, that is mainly because we have actively worked on keeping our expenses low and this is, in my opinion, the bare minimum possible for a decent living, but without any extravagancies.
Also, our monthly budget did not include travel costs, which varied yearly. If you want to dig deeper, you can take a look at my article sharing our monthly living expenses in Romania (which is also updated on a yearly basis).
A monthly budget of €500/month is unrealistic
I recently read the article sharing a list of countries where you can live on $500 per month and Romania wasn’t, as expected, on the list. However, I think that even in other places in the world, it’s difficult to live a decent life on such a low budget.
Salaries in Romania have grown tremendously over the past few years, especially the minimum salary (check out Romania’s wages here). Today, the take-home monthly salary is around €475 per month.
And I doubt any foreigner would be able to live on that alone. If you have to pay rent, it’s already not enough. You simply wouldn’t have enough money even for the bare necessities.
Yes, there are some Romanians that live on €500 per month or even less. BUT they share some costs with others, they get at least some sort of aid from the government (which foreigners would most likely not receive) and their life is difficult.
The cheapest possible rent you could find here would be around €150/month (for a horrible studio in a very bad area), while basic/survival-style food costs would be at least €250/month. This alone would only leave you with €100/month for everything else.
Medical costs, clothes, toiletries, electricity, internet… all these things add up and make living on €500 per month in Romania impossible or, at the very least, EXTREMELY challenging.
What’s the lowest monthly budget I recommend for living a decent life here? Starting this year, it’s €1,000. Depending on your spending habits, you can live a decent life and have fun. Not live like a king, but do OK.
IMPORTANT: If you only have €500 available each month and you’re living in the US or any similarly expensive country, the same budget will definitely offer more in Romania (or other cheap countries).
I recommend checking out various calculations I have made (including for students, which will be able to spend less each month):
- Cost of living in Romania
- Students’ cost of living in Romania
- The REAL Cost of Living in Constanta (larger cities are more expensive)
All in all, Romania remains a solid option for living on a budget. But you have to adjust your expectations and understand that “on a budget” is no longer €500 per month.
The worst part? I don’t see the cost of living decreasing in the future, nor slowing its increase too much. In other words, unless something catastrophic and unexpected happens, Romania will become more and more expensive each year.
So even the €1,000/month I recommend today might no longer be enough in 5-10 years.
What do you think though? Is Romania becoming less and less affordable, or do you think it’s still possible to make ends meet even on a lower budget, like €500/month?
- Best Christmas Markets in Romania: The Ultimate Winter Wonderland - December 9, 2024
- Romania’s Presidential Election Annuled by the Constitutional Court: ALL the Details - December 7, 2024
- Who Is Elena Lasconi: Romania’s Potential New President - December 3, 2024
Wow! That sounds like such a tight situation money wise. My feeling is that if you move to Romania for the low cost of living, your life should at least be as good as what you left or even better. If you have to scrape to get by, eating bones, soup etc..then it’s not worth it. I see bloggers saying you can live on $500 a month in Thailand too, but when l see what they basically have to give up, you wonder if it’s worth it in the long run. Better to get all your ducks in a row..and then go.. 🙂
I know I was reading a few years ago about living in Thailand for such a low budget – and they made it look like you were going to live well on that. But some research and even me talking with some people from there proved that it was not entirely true. When people say that you can live on a small amount of money and live well, they don’t really consider that most would actually find their “living well” unacceptable (like houses with no bathroom, sharing a room with 100 people and so on).
We are native Romanians leaving in North America for 30 years now and coming back to Romania more often in the last 10 years. How cheap is to live in Romania has to be measured starting from one’s expectations and acceptable standard of living.
In absolute terms, housing, food, travel within this country is cheaper than in the rest of Western Europe and North America. But a family of 4 on a $500.00 a month would be somewhere at the poverty line life style here. Sure, in the Western World they will not survive on the same $500.00, but they’ll be eligible for government welfare and all kind of help, allowance for kids clothes, free medical care, great free libraries, and probably more.
The life is frustrating in both situations, but we will not recommend Romania if all your budget is $500.00.
We’ll definitely recommend it if : your budget is higher, starting at 1000.00 Euros and have opportunities to work , grow and eventually make more money. Schools and colleges are good and you can give your children a good education, so chances for a professional job, career.
Our circumstances are not typical, so not interesting, but we know in accurate details both, the beauty, the attractions here and the many still negative aspects of this country.
Some professionals, entrepreneurs and retirees with foreign pensions and currency are making a very comfortable living in Romania, enjoyable and affording even savings. Statistics are right, Romania is among the cheapest places in Europe, but you still need some decent budget. Tourism to Romania increased many folds, with British, Spanish, Italians, Russians, Polish, Americans, Germans finding vacations satisfying, nice and cheaper.
There are also many foreigners living here. We appreciate that Calin’s budget, of almost 1200Euros is absolutely mandatory for a couple with one young kid. On the same money, a couple, without kids will have an easier life.
Exactly, they are having it thrown at them pretty badly. Although food-wise they don’t do so bad, the lack of saved money or the fact that they don’t really afford entertainment and other items makes the situation worse.
I was looking into retiring to super expensive Germany and found 29 sq meter apartments for as little as 166 Euros per month (heat included but not electricity) in a nice small resort town (has “Bad” in the name, which means Baths). It has a live theater and of course many therapeutic bath facilities. Yes, it is a bit out of the way in the former East Germany, right on the border with the Czech Republic, but it has been completely renovated since reunification. My point is that one can live cheaply in just about any country if one tries hard enough. Obviously, that’s harder for a family of four, but Michelle is right, the German welfare state would probably jump in with lots of benefits.
That is true! If you spend some time doing your research, you can find great deals anywhere.
I was just thinking that perhaps it might work if there is no housing involved like these people you profiled. If you can grow your veggies etc, it definitely helps too. Foreigners, however, (non Europeans) must show sufficient funds to sustain themselves and l’m pretty sure it’s at least triple that for a family. I still wouldn’t like to live on the edge like that even though l realize some have no choice. I consider myself fortunate.
I 100% agree. I think that three times as much is a good starting point. But for a family and especially if additional costs are involved, even that amount will be right at the limit.
This article aged well and the update with the latest information on village life was informative. The pandemic has made a big dent in our entertainment budget too. Working in my garden and in a larger garden of a friend gets me some exercise and lots of fresh vegetables at no cost (okay, very little cost). My entertainment consists largely of YouTube and playing chess against my computer. Last year, tired of waiting in the slow lane at the expressway toll booths, we invested $150 in an electronic box that lets you zip through the fast toll booth lane. The toll (about $40 for the four hour drive from my town to Sapporo) gets automatically deducted from my bank account and I get a discount on weekends. Then the pandemic hit and we have only driven to Sapporo once this entire year. The expressway was just about empty because very few others were driving there. Life is unpredictable. I see from your YouTube channel that you have been taste-testing Romanian junk food for entertainment!
We have to adapt and find new ways to entertain ourselves. I am one of those who isn’t really missing the “old times” even though I do miss traveling. But I am sure things will get back to normal eventually. Until then, we are happy to have the garden and enjoy the fresh air (And sometimes unhealthy snacks :D)
It’s a good article…I am an American who has been living in Romania for 2 & 1/2 years. One aspect of costs I have noticed is that Americans like myself are used to things that Romanians view as luxurious… a 55-square-meter apartment, for example, is common here but in America (which is under 600 square feet) is a very small apartment..I also have Romanian friends who have never seen an automatic dishwasher until they visited me, while it’s standard even in low-income places in the States…..and underground off-street assigned parking is standard in most American places…So my point is- if you give most Romanians $1,500 a month and tell them to live off it here most will be very content..While most Americans here would probably be miserable on that amount even if they could live somewhat better than in the States…Another point mentioned in other comments is that social programs kick in back home at that low of an income and take some financial pressure off..
Inflation marches on. It slows but never stops. Yes, $1,000 a month is probably the minimum for living in Romania. It was fun to read the old comments under the article too. The apartment for 166€ in Germany I mentioned isn’t listed anymore. The cheapest apartment in the same town is 240€ a month.
German apartments usually have nothing and you have to buy appliances, kitchen cabinets, light fixtures, curtains, and furniture (if you don’t have these from your old apartment). It was nostalgic to read my ruminations during the Covid epidemic. Life in the USA has almost become impossible. While there is assistance for some low income citizens, it is frightening to see all the YouTubers living in their cars.
So-called mobile home parks, considered the cheapest living option in the USA, are now being bought up by investment firms, and rents are being doubled. The mobile homes are not really mobile and very expensive to uproot and move. Many retirees live in these parks and cannot afford their medications and food anymore. The poor in America are targeted with payday loans at outrageous interest rates.
They have to pay high banking fees if they can’t maintain high balances or bounce a check. If they seek higher education, they are saddled with student loans they can never pay off. Most can qualify for Medicaid but many states are making cuts there too. The “frontier mentality” that prevails in the USA prevents its citizens from demanding more services from their government.
Almost 45% increase in 9 years… at first, I thought “the rental prices didn’t go up much” when I saw the numbers, but the percentages tell a different story.
There are surely other places where it’s more and more difficult for regular people to make ends meet and I believe that the “car living” trend and mobile home park living will slowly spread all over the world.