Unfortunately publications like Live and Invest Overseas and International Living are famous for throwing out ridiculously low numbers like $600 a month. But when people actually get to their destination, they realize there’s a catch. Things like…
To live on $600 a month, you’d need to have your house paid for. And if you have a car, that would need to be paid for.
Ideally, you’d also live in an area where you don’t need air conditioning because that would drive up your utility costs. You’d need to live in a Panamanian neighborhood in a house that may not be anything like you are familiar with. It may not have hot water for showers or even washing dishes.
If you want or need health insurance, it will take a bite out of your budget. You’d need to allocate about $50-$100 per month for health insurance. Which only leaves $500 per month for food and utility costs.
So, yes, it’s possible but it would require some major lifestyle changes (that’s the part Live and Invest Overseas and International Living leaves out) . Would you be willing to make those changes?
A more realistic budget for Panama is $1500 – $2500 per month.