Is it Really Much Cheaper to Live in Costa Rica?
Courtesy Costa Rica Living

The long & the short of it is YES, it can be hugely cheaper to live in CR. Like others have said, the average tico family lives on $4800/YEAR. They're not wallowing in abject poverty, either. They have plenty to eat, attractive clothing, and a clean appearance. They also have a TV, they own their own home, and they might have a computer. Nothing is stopping us from also living on $4800/year, which of course, is "much cheaper".

The question is how you want to live. It is no different in CR than in the US. There are families who live quite comfortably on $30,000 or $40,000 a year, and families that wouldn't feel comfortable spending less than $80,000 (or 100,000 or 150,000 or etc. etc.). Some things are more expensive in CR (goods), some are less (services). You can live very well here for less money than would buy you "good living" in the US, but it may not be the same kind of "good living" you'd enjoy in the States. CR is a different country; adjustments are always required.

If you are prepared to shed some of the luxuries you enjoyed back home (i.e. big kitchens, nice bed linens, long luxurious baths, fast food [if you consider that a "luxury"], high-quality spices, etc.), then you can live very inexpensively. But you will live like a tico, and ticos live in a "third-world country". Prepare for the differences, embrace your new life, and enjoy every minute of the pura vida, and you can live the good life "a la tica" for less money than you ever could in the US.