For people who are planning to move to the Philippines, there are always plenty of topics that they want or need to be educated about. Things that they just need to know in order to be able to make the move.
Probably the primary, most important topic in this real is about money! There are a number of aspects when it comes to money too.. sort of “sub areas” of concern. The big one that everybody seems to be interested in is “how much do things cost”. But, there are a couple other concerns too…. “how much do you need” and “how can I supplement my income?”.
With so many different sub-areas to be concerned about, money is a wide topic for those who plan to move to the Philippines, and there is a lot to learn. Another thing to keep in mind is that a lot of the information out there is opinion, not fact. I mean, really, if you were to ask me “how much money to I need per month” well, all I can do is give my opinion. What you need and what I need may be wildly different from each other! It depends on so many factors. Similarly, how much things cost depends on what it is that we buy, and what I buy may be totally different from what you buy!
Cost Comparisons
One thing that I find very interesting when people ask for cost comparisons is that it is such a popular topic among people who are thinking about moving here. But, on the other hand, among people who already live here, it is a nuisance, and a headache. It is not a topic that we like to talk about for the most part. There are just too many variables. If some guy that I have never met before would ask me “how much will my electricity bill be there” there is really no way to answer it accurately. I mean, firstly the power rate is not the same from city to city or region to region. Davao is different from Manila or Cebu. Another thing to consider is that it depends on things like how many air conditioners you will run, how many (and the size) refrigerators you have in the house. How will you wash clothes, by hand or in a machine. I know people literally whose power bill is P500/month, and I also know people paying P30,000 per month for their electricity.
Because of factors like this, the cost comparisons are just hard to pin down. I think you can be safe, though, to assume that overall life is much cheaper in the Philippines than it is to live in the country you are coming from (unless you are moving from some other Asian country or similar). There will be some things that are more expensive here, and you will find most things to be MUCH cheaper here than you are used to paying. It is also true that the longer you live here, the cheaper you will be able to live, because you will learn how to live cheaply, where to buy things cheaper, etc.
How Much to you need to Live here?
Much like the “cost comparisons” that I talked about above, the actual amount that you will need is highly variable. How much you need is probably totally different than how much I need. My income needs are high compared to most expats living here. Some of the reasons why I need a higher income:
- I have a large family, 10 people in the household.
- I have a number of kids and they are in private schools that cost money.
- I tend to get involved in doing charity type things.
- I didn’t come here to live cheap, I came here to live well.
Because of these kinds of factors, I don’t live that cheaply compared to most. So, let’s say that I personally need a minimum income of $3,000 to $4,000 to live on. I know others who live on as little as $500 per month. Now in looking and comparing me and this other person, we are really looking at two different extremes.
In general, I would say that you can “make it” on $1,000 per month, but you will not live a great life. For a decent style of living, I would say that you need a minimum of $1,500 per month or so. If you have a large family like I do, then you might need $2,000.
How can you supplement your income?
Well, there are lots of ways! Not everybody who moves to the Philippines is the 65 year old retiree! When I moved here, I was 38 years old. I didn’t have a pension, social security or anything of the sort. I had to be able to earn an income to support my family. I did have a nice amount of savings when I came, but I found that my savings was gone a lot more quickly than I thought it would be. When that happened I had to learn two things quickly:
- How to live more frugally.
- How to earn money in the Philippines.
Thankfully for me, I was able to learn how to do both. And, because I was able to learn those things, I have been able to stay here for a long, long time. I am currently in my 17th year of life in the Philippines.
For myself, I earn the vast majority of my living online. I have a number of different income methods that I use online. Most of what I do is probably obvious to those who read my sites. If it is not, just take a closer look at the sites and it won’t be hard to figure it out. Another this is that nearly 100% of my income is generated outside the Philippines. It is just in the past couple of years that I have started earning some income in the Philippines.
Other foreigners that I know try a lot of other ways to earn a living, if they need to. Some have things like Sari Sari Stores, Bars, Resorts and the like. Others go work abroad for part of the year. Whatever it is that they do, it seems to work well for them. For me, I prefer to stay here in the Philippines and not have to leave the country to make money.
So, as you can see from this article, money indeed is a serious factor in moving to the Philippines and living here. But, you don’t have to let it eat at you. You can do it! Sit down and figure out what you have in your nest egg, what you have still coming in and all of the other factors, and make a plan. Once you have a plan, stick to it!
And remember, what I said before… it is very important. If you are making it where you live now, I am sure you will do fine in the Philippines. Life is much cheaper here than it is abroad. That is a fact that you can count on!
Bob
Here’s my plan. I plan on selling my home here in California when I retire, and use that equity to buy something in the Philippines. Of course I will rent for a bit to nail down what I want, but my plan is to front load my housing costs. Once that is done, food, utilities, and transportation should be my only costs.
Hi Michael – Well, I think you know how I feel about buying property in the Philippines… but it is indeed an individual choice, and your plan sounds to be doable!
Hi Michael. I hope you realise that as a foreigner in the Philippines YOU cannot own a house or property. Must be in the filipino halfs name. Risky business because once you have outlayed your hard earned cash, your wife or girlfriend can evict you and you wont have a leg to stand on. Thankfully I have been lucky. Good luck
Hi Bob, unless you have a good pension you have to make money for a decent standard of living in the Philippines, we made ours before leaving the Uk building apartments and buying houses to rent here in Manila, it was hard work and long hours back in England
But it was worth it to retire at 52 we still do some jobs to keep our properties in good condition ,you have to do things here to pass the time seen to many expats drinking during the day that’s not for me but like a beer in the evening ? , another good post like you say
Everyone has a different lifestyle and a different budget, Derek in pasig.
Hi Derek – Yes indeed, you have to make money some way! Even if you are on a pension you earned that as part of your job over the years, so you did earn it.
Thanks for reading!
I been living and working in Manila for the past 11 years. I have been very blessed here and I must say that I am bearing down on retirement within the next couple of years and I intend to stay. During my time here, I have come to accept that my lifestyle here has had to change….and I expect my expectation in retirement may have to change as well. The point of looking abroad for retirement is to be able to make your available resources match your standard of living. I can tell you that retirement for me in the good ol’ USA would pretty much boil down to a “single-wide-in-the desert” sort of existence if I were seeking to make it on my meager SS benefits. Here, I can hope to maintain the standard of living I’ve established here even past retirement. I will have to have some supplemental income, but I can look forward to health care at a reasonable cost, (I believe I will not face “medical bankruptcy”) as my health begin to fail, basically very low tax rates and all the “helping hands” for living out my life in reasonable comfort, that I might want. I know this is not very precise information, but I think it is the important information. Granted, as an expat, I may live better than Filipino aged when I reach that threshold, but I may also live better than huge percentage of the aged that remain in the US. Expat life isn’t for everybody. Sometimes it can be frustrating for someone who wants to live abroad in the same manner as they do in the US or some other western homeland. It takes a certain open-mindedness and a willingness to accept that not all culture are the same. But some folks see that as a problem…others see it as a wonderful opportunity to enrich and expand their time on the planet.
Hi Easymark – Been working here for 11 years, you are another long termer here then!
It will be interesting to hear from you as you go into retirement here and see how eveything goes for you!
Amen on this one, Bob. You know me, I can get annoyed quite easily, and I do so often get annoyed or at times even depressed by some of these “how much does it cost” questions. It’s not becuase I don’t want to help or to do my best at answering a readers question, but the truth is, how the heck would I know?
It’s almost impossible to imagine two separate readers moving to the Philippines and having anywhere near the same monthly expenses. Everyone (especially with a family) is different, every place they might live is different, and on and on.
I sometimes reflect such questions back with a query as to how much they need to live on in the USA? Anyone care to propose a number for that? It would certainly vary wildly.
And then there’s the difference between how much does one need to live on to be happy and comfortable versus how much does one need to actually survive on? That could vary by a huge amount, especially here in the Philippines where one could live very, very cheaply indeed.
Hi Dave – I think that all of us Philippine Expat Bloggers feel the same about the topic as far as I can see! Of course you might be a little more cranky about it than the rest of us. 😉 Ha ha.. just kidding, my friend! Nice to hear from you.
Your figures to live here comfortably are right on. To live well one should have $2000 a month. But I also know people that like their lifestyle and they live on $1000 or less.
I agree one shouldn’t let money be the determining factor on whether to live here or not. Life can be very hard here. So many people I know who’ve let money determine where they should live end up not liking the Philippines. They wouldn’t like any 3rd world country.
Your numbers.. $2000.. very realistic to me, Rusty.
All good for you Americans with your dollar at 46. Maybe you can have my Australian dollar currently at 34? Haha
I have a wife and one child. We can live ok on about 40-45,000 peso per month.
This allows us a trip per month to Cebu to stock up on meat at S & R.
Would cost me three times as much to live in Australia, plus all the rules, regulations, fees, taxes and charges.
Wish I discovered the Philippines twenty years ago!
Hi Adam. I have been hearing from many of my Aussie friends about the poor exchange rate. Sorry you guys are having it tough right now.
Same with the GBP used to get 96peso to the £ when I first came here,now its only 67
Really, same with the USD too.. we used to get 56 ,now it is 46. It hits us all. It looks like you are down about 30%, we are down about 20%. So, we are in similar situations. A few years back the USD was 40 and that put us down by 30%. These things come and go. 🙂
Thanks Bob for another good post. You do have a nice down-to-earth way of explaining things, without talking down, and without leaving important points out.
The question of how much you need to live here is obviously the first and foremost for most of us taking the step. While there is no straight forward answer to this, as you also point out, I think some simple guidelines – like a list of prices for goods and services that everybody needs, could be helpful. When I moved here, I found that the best guidance I got was an email from an old friend, who had lived here for many years. He listed the prices of a number of things, such as grocery items, hotel rooms, domestic air tickets, rental of flats or houses, medical costs (like how much he just paid for a prostata operation), salary for a house maid, etc.
Simply put, your conclusion “life is much cheaper here than it is abroad” pretty much wraps it all up, anyway.
Thanks,
Thanks. Glad that you like the article.
Over the years I have posted lists of prices. I find it to not work well though. Prices are different city to city. Also, after 6 months the list is generally meaningless. I think people should just keep in mind that overall life is j7st much cheaper here.
Yep, prices differ from place to place, and over time. Davao City, being the second largest metropole outside Metro Manila, is of course cheaper than Makati, and perhaps Cebu, but more expensive than anywhere else. The time factor is of course important, but the time when people read such list is the time they compare to what they have. Inflation is a factor, and Asian inflation is generally much higher than in the west. But a more important factor is the rate of exchange Foreign Currency/PHP, and nobody can guess about that!
Yes. Exchange rates are a huge factor in cost of living. Probably the biggest.
I agree it is very hard to advise someone on the cost of living in the Philippines. It depends on their life style. Where they plan to live, are they willing to go “native” or expect the same comforts as in their home country? If I were to go “native”, I could live on $500 per month. If I lived in the city, because I like the conveniences, it may be $1000 per month. If I lived in the city, I could get by without a car, but with a car it would be more like $1500 per month. As a rule of thumb, $2000 is a reasonable budget, if you are not living in Manila.
The bottom line, you need to define your life style, your health condition, your entertainment expectations, and where you want to live. If you plan to move to the Philippines, come for a visit first. Talk to the ex-pats in the area you plan to live about their life styles and budgets. Then make a detailed annual budget for your personal preference. Overall, the Philippines is cheaper than the USA, if you are smart with your money. Since I own homes in the USA and in the Philippines, my budget is about $5000 per month.
Yep. That wraps it up nicely.
I” m a little unique all my life about 60 years now I have been involved with horse racing I make a little xtra income with that knowledge…… I have been playing Texas Hold Em for 20 years and do make extra income from that.. I live on the $1500.00 bracket and I love it here and have found a wonderful soulmate been with her her for the 9 years I have lived here could not make it in the U S on that unless I kept working “”never ever””” thought I would live in the Philipphines but because of her and moving here I see a completly different picture of how life can be ..with out the stress and hard work it would take back home.. Reminds me of the times Grandma was still alive growing up……………I really love it here…
Hi Lenny – Sounds like you are really enjoying life, keep it up, that is as it should be!
I used to know a guy who lived here doing nothing but playing online poker, and made good money doing it. I have not talked to him in years though, I’ll have to look him up!
http://www.nubeo.com
is a good tool to use to give you an average cost comparison between your current town, and the place you wish to move. it compares a wide range of cost including avg. rent, restaurants, clothes, utilities, sport and leisure, transportation, etc… it is a very good TOOL to use to get a picture, but as Bob stated everyone’s needs and desires differ.
I was wondering how to find a group of expats around the Calapan City area or how to find a group anywhere?
Hi Gregory – The best way to do it is to just start hanging out at places where other foreigners would gravitate. McDonald’s is always a prime candidate. Starbucks or other high end coffee shops. Malls are always good too. When you hang out there, keep an eye peeled for other expats and then introduce yourself. If they are willing to talk with you ask them for coffee or lunch! Ask if they have other local expat connections and they will be happy to share that information.
Facebook is also a good resource these days, there may even be a FB page or group devoted to expats living in the area where you are.
I hope this helps.
I’ve heard it put in terms of 3 groups from those trying to simplify the subjective-pick your poison. Your mileage may vary.
$500-$999-going native
$1,000-$1,999-comfortable but with limitations
$2,000-$3,000-somewhat extravagant (travel a lot/going out a lot/air con a lot/nice area-nice location)
Anything above that, one wonders why not stay where you are due to infrastructure and limitations on Western Style amenities in a developing nation.
Hi Bob,
I think realistically the best way to answer this question is for them to count on spending what they do where they came from. If you are comfortable where you are coming from then it more than likely is going to cost you close to about the same amount plus maybe a little more if you want to stay at your current lifestyle. I know electricity and other stuff will cost more but some other things will be cheaper to help off set it. It all comes down to planing and budgeting same as where you come form. But hey if they find they didn’t spend as much then it is a bonus for them.
All I can say is good luck to the people who think they will move to the Philippines and live like kings on less money than they are spending now.
Hi Scott – I agree in some ways, but disagree in others.
If a person, or a couple, comes here expecting to live on the same budget that they do “back home” then they will not be in for a rude awakening. That is a good thing to do.
But, I disagree that living here is going to cost about the same amount or more.. I feel that it will always cost less to live in the Philippines than it does to live in your previous Western home. I do believe, and this is my experience, that you can live a really great lifestyle for less money than you spent to live a “run of the mill” life back home.
While I agree with you as they should be able to live better there for less, but they will need to adjust. This is just what I tell people when they talk about moving to the Philippines. I also tell them they probably will be cheaper after some time. I just stay on the conservative side because people get there and tend to live la vida loca (the crazy life).
Hi Scott. Of course you are right that over time people learn how to live less expensively. Cost of living drops with time.