Answer
No, Uruguay should not be considered a cheap country to live in. It can be financially comfortable with a steady income, but rent, imported goods, healthcare, transport, and start-up costs often make it more expensive than expected.
The cost of living depends on the chosen city, district, family composition, and habits. A cheap apartment far from the needed school or workplace can become expensive because of transport costs and time. Imported appliances, clothing, specialized goods, and certain services can also cost significantly more than a person is used to.
Before moving, it is better to plan for three budgets: an initial budget, a regular monthly budget, and a contingency budget. The contingency budget includes loss of income, an extension of temporary housing, healthcare, winter bills, and a return trip. If this scenario would quickly exhaust your finances, you should change or postpone your relocation plan.