1. Alicante, Spain
This Spanish city has become a master in the art of frugal living without sacrificing the quality of life. Alicante has all the ingredients for happy life like relaxed atmosphere, great food, stellar entertainment and wonderful climate.
A one bedroom apartment (in the center of the city) is $550 a month, public transport is $40 a month and a good domestic beer will cost you only $1. The minimum wage in Spain is $5.82 an hour.