The inspiration for this post on cheap living in Panama was an exchange of $15 for six carrots, one bunch of celery, and a bag of green grapes.

Turns out that those green grapes were imported and cost about as much as a pair of shoes in Panamá! #lessonlearned

I gush all over Panamá on a daily basis—it’s a WONDERFUL place to live and I couldn’t be more thrilled to be here.

But, as a writer, my personal policy is not to sugar coat the challenges. In my opinion, it’s dishonest not to share them and a disservice not to pass along the solutions Ken and I come figure out.

(Believe it or not, this has gotten me called a “bitch” and invited to leave the country…mostly by other expats. 😆 A helpful little solution I’ll share with y’all on dealing with the nasties…go to their profile, click on those three dots under the “Message” button, then the “Block” button. Poof…they will never again see any of your posts! 👏)

This is NOT a bitch session…it’s a blog post to help those of us who don’t identify as wealthy to reduce our expenditures without sacrificing health or quality of life.

The easiest way to live cheap in Panama…

…is to buy or rent in a quiet Panamanian community away from all of the expats and tourists. The difference in the cost of living between this type of community and the expat and tourist ones is BIG.

On our reconnaissance mission several years ago, we quickly realized that our costs were going to be higher than we initially expected because of our choice of communities.

We fell in love with Playa Venao, which is almost entirely comprised of expats and tourists.

But, we decided it was worth because we could see that we were going to save TONS when it came to quality of life.

• Abundant nature around us means our entertainment expenditures are almost zero.
• We will have a view that would cost multi-millions in our native San Diego.
• I could just afford to build a small nature and book retreat (something I would never be able to do anywhere in California).
• Plus, we have the priceless pleasure of three different species of monkeys in our lives!

Unfortunately, cocktails are $10, massages are $60 (I guess for some this is a deal, but I paid $45 for awesome ones back in San Diego), a bag of organic rice is $13.

Sure, these are luxuries, but our mental and physical health are our top priority and these things maximize both. Plus, we’ve earned these perks after decades of very hard work.

There are several reasons for these higher prices:

❶ Sometimes it’s the “Gringo Tax” (I don’t like it, but I totally get it)

❷ According to a local business owner who we chatted with “off the record,” many prices for goods and services are “fixed” by the local business owners …and, most local businesses don’t offer a locals discount (some do…see below!)

❸ One seasoned expat attributed some of it to economies of scale—people need to charge more for their product or service because there is not yet a consistent flow of business to keep them afloat.

It’s disappointing that at the same time we’re paying these prices, I’m being told that I can’t get away with charging my normal prices for the professional services I provide.

Tips on cheap living in Panama…

These tips are simply things that I’ve started doing to help cut my costs that I hope will help you, too.

Many of the tips are simply reverting back to the “good ol’ days” when humans weren’t so wasteful.

I’m motivated by the cost savings that will come from being more like my grandma and by the hope of living more ethically when it comes to the environment.

In addition to general tips, if you live in Pedasí, Playa Venao or Cañas, I’ll be sharing the stores and restaurants where we find the best deals.

If you have any tips to share, please do so in a comment below! And, bookmark this post because it definitely will expand over time.

Shopping & Dining Out

◘ Pay CLOSE Attention to Grocery Store Prices

Not to be overly obvious here, but paying close attention will save you a lot of money.

By doing so, I’ve found out that: 1) two Chino stores in the same town may price the “gringo” items quite differently and 2) the “gourmet” grocery stores (including Riba Smith) have some items priced really well.

I’ve found price differences between Chinos can vary by 20%-30%—and it’s not always the same store that’s the most expensive. By paying close attention, I have figured out exactly where to buy each product that I buy regularly so I’m saving quite a bit of money.

When I started grocery shopping, I assumed Riba Smith was my splurge store. While that’s definitely the case with a lot of items, I’ve found a few that are way cheaper than my local Chinos.

For example, a package of good quality Serrano Ham will be in the $4-$5 range at my local stores, but is only $2.30 at Riba.

A can of pureed pumpkin, which I eat throughout the year because of its health benefits, will run me around $3.50 at my local Chino and only $2.25 at Riba.

A large bag of organic rolled oats is $9.99 at the Chino, but I recently found the same exact stuff at a new little organic grocery store in Las Tablas for $4.60!

◘ Do NOT Buy These Organic Foods

I’ve been pretty fanatic about buying everything organic in the states for the past couple of decades. This is more challenging and expensive in Panamá.

When Ken and I were chatting about it the other day, he asked…”Do you think we’re too old for ‘organic’ to matter anymore? We’ll be dead before the after effects kick in.”

OK, maybe this is true…(although I wasn’t able to find any support for this on a serious Google search)!

What I did find on Google is this list of foods that are a waste of money to buy organic (with the reason why in parentheses):

• Bananas & plantains (thick skins + low pesticide residues)
• Blueberries (generally have low pesticide residues)
• Grapefruit & tangerines (these rank the lowest in pesticide use; get organic if you’re using the peel)
• Kiwi (one of the “Clean 15”)
• Mangoes (their thick skin typically has little to no pesticide residue)
• Papaya (one of the “Clean 15”)
• Pineapple (one of the “Clean 15”)
• Melons (watermelon, cantaloupe and honeydew; pesticides do not work well for this crop)
• Asparagus (one of the “Clean 15”; most pests don’t like it, so it’s rarely treated with pesticides)
• Avocados (one of the “Clean 15”; their thick skin typically has low pesticide residue)
• Broccoli (one of the “Clean 15”; pesticides don’t work well on these so few are used)
• Brussels Sprouts (pesticides don’t work well on these so few are used)
• Cauliflower (one of the “Clean 15”; pesticides don’t work well on these so few are used)
• Cabbage (one of the “Clean 15”; pesticides don’t work well on these so few are used)
• Eggplant (one of the “Clean 15”; rarely contains pesticide residue)
• Garlic (has natural pest control and is rarely sprayed)
• Mushrooms (one of the “Clean 15”)
• Onions (one of the “Clean 15”; has natural pest control and is not sprayed much)
• Quinoa (it doesn’t need pesticides since its bitter taste deters pests)
• Sweet peas, frozen (one of the “Clean 15”)
• Sweet Potatoes (pesticides don’t work well for this crop and are used sparingly)
• Tomatoes (if they are local, you don’t have to buy organic)
• Zucchini (doesn’t tolerate many pesticides, but you should wash them well)
• Dried beans (because they are usually washed, soaked, rinsed, and boiled, which removes insecticide residues)

◘ Avoid the Imported Stuff

Eating local foods is especially important in Panamá.

My bag of imported grapes was an expensive lesson—they were about the same price as a pair of locally made shoes.

The local stuff is WAY cheaper!

When you’re looking at bagged (like chips), boxed (like breakfast cereal) or canned (like chopped tomatoes) goods, I’ve learned not to grab the one in English that I’ve been using for years without looking at the alternatives.

There will often be a local brand that is way less expensive—not only are they as good, sometimes they’re even better!

◘ Buy From the Food Trucks

In my area, there both are produce and food trucks that have much lower pricing than the local stores.

Every Friday a guy selling fruits and vegetables shows up in Cañas. This is what I got for $22 the first time I found him:

• A head of red leafed lettuce
• One pineapple
• One avocado
• Two giant tomatoes
• 10 oranges
• 5 bananas
• One beet
• Basket of strawberries
• 3 heads of broccoli
• One ginger root
• A big slab of raspadura de miel de Cañas (A local specialty and chewy sweet treat made from cooked sugar cane juice.)
• A bottle of sugar cane syrup (This is one of my favorite local specialties! It’s delicious in a rum drink.)

SO much better than the $15 I spent on carrots, celery and grapes!!!

This first time, I went a little crazy. Because his stuff isn’t organic, I’ll be focusing on the “clean” produce I mention above in the future.

◘ Eat at the Local Fondas

You can save a wad by going to the Panamanian-owned restaurants known as “fondas.” They generally serve a chicken, meat, and pork dish…sometimes a fresh fish dish.

BUT...ask the prices before you order! We got "gringoed" at one fonda...they charged us $8 for a $1 Panama beer (we won’t be going back!).

◘ Look for Happy Hours & Great Deals

Unfortunately, in Playa Venao, Happy Hours and deals are the exception rather than the rule. But, they DO pop up every so often.

We watch the WhatsApp community groups for announcements of special deals and try to go out then rather than when things are full (tourist) price.

Here is our (growing) list of favorite places where we regularly get a lot of bang for our bucks:

• For so many reasons, our #1 favorite is Villa Marina Bistro (Playa Venao)—the setting is beautiful, the regular prices are reasonable, they have weekly specials (like Taco Tuesday with $2 and $3 tacos), and they give locals 10% off. Eat here!!!
• El Pescadoro (Cañas) has delicious fresh seafood and sancocho at a fraction of the price of the touristy restaurants.
• Fama Sushi (Playa Venao) in Wao Venao has delicious Asian food and offers 10% off to locals.

At Home Cooking

◘ Eat Less Meat

Consider being a “flexitarian” (“flexible” + “vegetarian”).

According to Healthline, with a Flexitarian Diet, you eat mostly plant-based foods and meat and other animal products in moderation. It’s much more flexible than being a full vegetarian or vegan.

I’ll admit that I’m super particular about meat. The one time I bought chicken at the local “Chino” grocery store that turned green the next day was the last day I bought chicken anywhere but from the higher quality butcher.

This means that chicken and meat are not cheap. Being a “flexitarian” will reduce our grocery bill simply by reducing the amount spent on meat and substituting it with less expensive produce.

◘ Use DRIED Beans

I’m definitely embarrassed—and my grandmother would be disappointed—that I had never cooked my own beans from scratch until just about a month ago.

It took my determination to reduce my grocery bill and an Instant Pot to make this happen.

First, let me briefly enlighten anyone who may not know about the glorious Instant Pot.

A friend turned me on to it when she made AMAZING pork carnitas with very little effort. Now, I use it almost every day and wonder how I made it this far in life without one! (This says a lot being that I made a vow not to buy a bunch of appliances here.)

In short, the Instant Pot is the updated version of the pressure cooker of days of yore…and, so much more. I use mine to make soups, stews, carnitas, yogurt, oatmeal, cheesecake—and to cook DRIED beans.

It cooks things FAST, doesn’t dry the food out, and is very easy to clean (only one pot).

This is the model I have (it’s perfect for two people)—6 quart Instant Pot 7-in-1 Electric Pressure Cooker, Slow Cooker, Rice Cooker, Steamer, Sauté, Yogurt Maker, Warmer & Sterilizer

Now, let’s talk beans…

Dried beans cost significantly less per serving than canned beans—according to The Bean Institute (for real 😂), less than half.

In Panamá, a bag of beans will cost you about $1.30-$1.80 and will make you about 12 servings.

(NOTE: You don’t need to spend extra money on organic beans (see the “What NOT to Buy Organic” section below) because dried beans are usually washed, soaked, rinsed, and boiled, which removes most insecticide residue.)

Here are some of my favorite Instant Pot recipes using dried beans:

• The BEST Instant Pot Black Beans
• Instant Pot Black Eyed Peas
• Instant Pot Pinto Beans
• Instant Pot Cuban Black Beans
• Instant Pot Greek Style Butter Beans
• Healthy Baked Beans

◘ Make These Frugal Food Substitutes

I’m working on frugal food substitutes to help reduce my grocery bill. Here are the ones I’ve come up with so far:

❶ Steel Cut Oats

According to Healthline, steel cuts oats have a bit more fiber than rolled oats and the lowest glycemic index, potentially making them control blood sugar better.

Where I live, a small bag of steel cut oats (about 8-10 servings) will set you back almost $10, while regular oats are a tiny fraction of the price.

I invested in a large bag of chia seeds and add them to the much-less-expensive rolled oats.

According to WebMD, chia seeds are high in fiber and omega fatty acids. (They also contain quercetin, an antioxidant that can reduce the risk of heart disease and is a recommended supplement to take to prevent and treat Covid!).

❷ Organic Rice

Buying organic rice is financially painful wherever you are—in Panamá, it will set you back more than $13 for a small bag.

So, I try to use “riced” (NON-organic!) cauliflower and broccoli whenever possible. Not only is it much cheaper, it’s also way lower in carbs.

❸ Gluten Free Flour

Being gluten intolerant, I try to eat gluten free as much as possible. While I’m thrilled that I can still get gluten free flour here, it’s pricey.

Good news…plantain flour is a fantastic and cheap substitute that you’ll find in most stores!

Two suggestions…

❶ When baking, it’s best in heavier recipes (like banana or chocolate breads) as it does have some flavor to it

❷ I add some chia seeds to help offset what’s missing in the all-purpose flour

I’ll be adding more substitutes as I discover them, so check back here from time to time.

◘ Minimize Food Waste

Our grandparents knew how to use everything and preserve foods better, so they minimized food waste. I’m determined to be better at this, not just to save money, but to also minimize overall consumption.

Here are some ideas and recipes that will help you start minimizing food waste (this list will grow, so bookmark this post!):

❶ Watermelon

• Stir Fried Watermelon Rind
• Watermelon Rind Carne Guisada — This is delicious! I used pork loin instead of beef…better price and a bit healthier.
• Watermelon Rind Bruschetta
• Roasted Watermelon Rind Parmesan
• Watermelon Rind Gazpacho
• Watermelon Rind Kimchi
• Watermelon Rind Quiche
• Shredded Watermelon Rind Cole Slaw
• Watermelon Rind Curry

❷ Lemons

Use your citrus peels to make an all-purpose cleaner — After you squeeze the lemon, orange or lime, slice the peel, put it in a regular size spray bottle, add 1/2 cup vinegar, 1 teaspoon salt, and fill to the top with water. Use this as a general cleaner instead of paying for a chemical one!

❸ Avocadoes

Like my previous hometown of San Diego, Panamá has seriously beautiful avocados. But, like bananas, they have a super short window period of perfection, which means I’ve wasted a lot of them in my day. Here’s a fabulous tip to minimize avocado waste—on the day they’re the perfect ripeness, mash them up and use a cookie scoop or ice cube tray to create small servings, and freeze them. When you’re ready for some avocado, just pull it out of the freezer, thaw, and enjoy!

❹ Bananas

I will never toss another banana peel again! They are packed with amino acids and Vitamins A, B, C and E, and are full of antioxidants, potassium, and magnesium to support heart health, help you sleep better, and prevent bloating.

Here are a bunch of ways to use banana peels that I found from Pure Wow:

• When you’re making a smoothie, leave the peel on to boost its nutritional benefits!
  
  
• Use them to keep your meat and chicken from drying out during cooking. If you’re roasting meat, add a ripe banana peel or two to the bottom of the pan; if you’re baking chicken breast, cover the meat with banana peels and it will steam the chicken.
  
  
• Make Banana Tea (especially right before bed!):
  • Fill a pot with 2–3 cups (500–750 ml) of water and bring it to a boil
  • Gently rinse off the banana peel to remove dirt and debris
  • Add the banana peel to the boiling water
  • Reduce the heat and simmer for 15–20 minutes
  • Add cinnamon for some extra flavor (optional)
  • Store any leftovers in the fridge and drink within 1–2 days (cold or reheated)
    
    
• Because they are loaded with Vitamin E, they are an excellent moisturizer, help fade dark spots and scars, and protect against oxidative skin damage. Cut them in pieces to fit on your face (including smaller pieces to fit under your eyes) and leave on your face for 15-30 minutes, then rinse with your regular cleanser.
  
  
• The lectin and zinc in peels have antibacterial traits that also help with acne, speeding healing of problem spots and preventing new ones from popping up. Take the skin from a slightly overripe banana and gently rub the inside onto your breakout, rubbing until the peel starts to turn brown and slimy and leave it there for 5-10 minutes. Repeat a few times throughout the day and you should start seeing a difference in a week.
  
  
• Skip the expensive foot creams and use your banana peels to moisturize your feet! Because of the vitamins and amino acids in the peels, they help dry and itchy skin. Just rub the inside of the peel on your cracked heels and rough toes then rinse off the goop. Do this for a few days to soften up your feet.
  
  
• They are a known home remedy for soothing bug bites because they contain lots of polysaccharides, which reduce swelling and inflammation. Simply gently rub the inside of the peel over the bite and repeat throughout the day whenever you need relief.
  
  
• Use them to polish, fertilize and protect your plants. The potassium and phosphorus in the peels strengthen the plant’s roots, fosters growth, and helps keep pests and diseases at bay. Gently rub the inside of the peel onto your plant leaves to make them shine again; to use them as fertilizer, put the peel directly into the soil or soak the banana peels in water for two or three days (out of direct sunlight) and use this to water your plants.

❺ Papayas

Papaya seeds are a natural anti-parasitic that have been used by many cultures throughout the world for thousands of years. Wash them, let them dry naturally or with a dehydrator, put them in a pepper grinder (or grind them with a mortar and pestle) and use them like pepper. Here’s more info:

❻ Pineapple

Plant the top and it will grow a new pineapple!

Take the skins and the inner core, place them in a large pot and fill it with water. Bring to a rolling boil, then reduce heat so it simmers. Add a couple of rosemary sprigs and a single cinnamon bark and simmer for 30 minutes. Strain, add a little honey or miel de Cañas if you want to sweeten it up a bit, and drink the Vitamin C and bromelain-packed liquid hot or put in the fridge for a cool drink later.

❼ Avocados

How many times have you bought an avocado (or two) with a plan to use them only to be foiled by their untimely ripening? This used to happen to me so often that I totally began to resent avocados 😆

Who knew it was so easy to fix this problem???

Simply fill a container with water, drop the avocado in, seal it, and stick it in the fridge OR throw the entire avocado in the freezer — it will save for days, even weeks! 

❽ Pickle Juice

Don’t throw away the dill pickle juice that’s left over after you finish the pickles! Here are a few things you can do with it:

• Take a pickle shot! Get two shot glasses—one for some pickle juice, one for some whiskey. Whiskey goes first, quickly followed by the pickle juice. Seriously…it’s AWESOME!
• Throw in some raw veggies for an encore! Chopped cauliflower and peppers are two delicious options.
• Make Dill Pickle Hummus

◘ Make Ugly Broth

Just the other day, I plunked down $25 for six cartons of organic chicken and veggies broth at the grocery store that caters to expats. (Again, my grandmother would be disappointed. )

Not having a garbage disposal in Panamá, I quickly learned that you have to keep food scraps in the fridge or freezer until trash day. I’ve been doing that for six months now, so I’m a little embarrassed that I didn’t think of this tip myself…

You can make your own “Ugly Broth” by using a good amount of those scraps that you store in a sealed bag in the freezer!

Here are the recommended scraps to use:

• Onion skins
• The tiny ends of garlic cloves
• Celery bottoms and tops
• Carrot peels
• Mushrooms stems
• Wilted scallion tops
• The sliced off tops of tomatoes
• Meat bones (cracked open)
• Hard cheese rinds

Apparently, most other veggies with either make your broth cloudy or bitter, so the original author (Rural Sprout) suggests sticking to this list.

When the bag gets full, simply dump everything into a stockpot, cover it with cold water, add either several sprigs of fresh thyme or 1 teaspoon of dried thyme, 1 bay leaf, ½ teaspoon of whole peppercorns, and 1 tablespoon of salt, and start cooking.

Start on medium-high and when the broth starts to bubble, turn the heat down to low and simmer for about 30 minutes. (No longer than 40 minutes to avoid bitterness.)

There you have it…CHEAP homemade broth without any chopping or shopping!

Click here for more details on “Ugly Broth”.

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