Guanajuato Retirement

[DML]

Yes, you can live cheaply here as others say, but it all depends on your frugality and most importantly rent.

I highly suggest you come and visit and stay for awhile...at least a month or two to get a feel for a place and see if it is indeed where you would like to live, be it GTO or anywhere else.

Nicaragua is cheap. Cheaper than Mexico and you can live well on far less. This book is a great resource for living abroad and choosing your country based on many factors (rent prices, food prices, utilities, medical care, visa restrictions, and much much more). Furthermore, lots of expats were interviewed for each of the countries covered:

http://www.cheaplivingabroad.com/