@Pandora you bring up a lot of good points, however, I have tried what you have done but ran into roadblocks. How would you recommend I (or anyone considering going abroad) overcome them:
A lot of these countries where the cost of living is cheaper come with significant problems. Major corruption, health services are poor at best and if you have any more serious medical condition you may be completely doomed in terms of treatment options, schools are of questionable quality at best, food is increasingly becoming americanized as well.
The justice system will not do anything but screw you over if you don't have connections or aren't willing to bribe people.
Your income being much smaller, you are sacrificing your freedom for the future if things go downhill as well. Your ability to provide for your family on a lesser income is compromised significantly too.
I do not have enough net worth to live passively off of investments, so finding some sort of online income is the best way to earn enough, but that is quickly drying up as well with many companies mandating return to office.
Further, going anywhere that is not an individualist society like the united states makes it difficult to integrate. People are more distrustful of strangers and people outside their immediate social circles. Making friends to actually have people to go out with is much tougher. Further, women are more inherently distrustful of you as a foreigner in their country, even if you manage to become fairly fluent in the language.