If you have lived in a foreign country like the Philippines for an extended time, it is likely that after some time, in financial terms, you will begin to think in the currency of the country you are living in, instead of the country where you came from.
When you first come to live in the Philippines, if you are from the United States, it is likely that every time you buy something, or even look at something you might buy, you will always convert the Peso price into Dollars. In other words, if the price is marked at P300, you will calculate in your mind how many Dollars that is, even though you will pay in Pesos. Like I say, when you first come here, this is something you will do constantly.
How long does it take to start thinking in Pesos instead of dollars? Well, it depends on many factors. How often do you go shopping? How exposed are you to your former currency, Dollars? Do you spend a lot of time talking with other foreigners, and thus talking about Dollars? All of these factors, and others too will help determine how long it will be before you are thinking in Pesos.
In my case, I am in a bit of a unique situation. Of course, when I first moved to the Philippines, I was always converting Pesos to Dollar amounts in my head. After a year or maybe 18 months, though, I was mostly thinking in Pesos, and not even thinking much about Dollars any longer. Then, after I had been here for about 2 years, I started doing business on the net, and my prices were always in US Dollars, because that was the currency that my customers used. Since that time, my involvement in online business has been increasing every year. So, now, I would say that in most cases I still think in terms of dollars in my daily life. However, if I just go to the store to buy groceries or simple things like that, I do not convert in my mind, I simply think in Pesos. For major purchases, though, I still look at both Dollars and Pesos.
Living when you are thinking in two different currencies can be difficult. For the most part, I would suggest that you should try to move your brain to thinking in the local currency as much as possible. If you are still involved in business which is denominated in Dollars, as I am, it is difficult to make that shift 100%.
How about you? What currency do you think in?
Note: About 12 hours ago, I enabled threaded comments on the site. We tried that a couple years ago, and it did not work out great, but I think it has promise. Let’s give it another shot and see how it goes. If you wish to reply to a specific comment on the site, you can hit the “reply” button within that comment, and your comment will be listed under the comment you are responding to. You will also see my replies to each individual comment right under the comment that I am replying to. Any feedback you might have, positive or negative would be appreciated in evaluating this.
maayongbuntag bob
i would have to say that although i live in usa i still send alot of money to philippines.my fiancee is there right now and im converting all the time so i would say i use both peso and dollar alot.
sometimes it makes me a little loko hahahaha.
salamat bob
Hi RonW – Yes, all the conversions can certainly lead to a headache! I'm kind of used to it now, though!
Duel here to Bob … Phil n Jess
Hi Phil – 😯 Dueling Currencies! Shocking! 😉
Hi Bob!
I've been dealing with mental currency conversions since my first 3 year stay in Germany in 1979. Travelling in Europe pre-Euro I was constantly converting between dollars-marks-francs-guilders-etc.
My math skills increased but I still prefer the Euro when travelling now.
Just be glad that there isn't a different currency in Mindanao and Cebu or Luzon!
Mark C.
Hi Mark – I agree, for a place like Europe where countries are small, the Euro is a lifesaver for a traveler! Different currency for Mindanao, Luzon and the Visayas? Yeah, I'm happy that is not the case!
Well Bob I think in Pesos, but when it comes to certain things it just helps to think in Dollars… then of course I have my Forex account and have to think in Pounds Sterling, Euros, Canadian Dollars, Yen… 😛
Hi BrSpiritus – You are a man of multiple thoughts! 😯
I try not to think of it in peso's just because it seems like so much more 20 tho here and 50 tho there but to my wife its all the same … more 😆
HI Tommy – Yeah, when I first moved here it was hard to get used to all these thousands and thousands of pesos.. it sounded like big money! Now, I'm just used to it though. You will be too!
Bob,
Person thinks in dollars and they will stay broke by the 10th of every month if not sooner because if convert to dollar many things will seem bargain and person will spend more money.
A German man on a boat gave me that advice very many years ago and was best advice I ever received because if think of things in local currency and in local economics person can save allot of cash.
Yep 800bucks a month rent may sound cheap to American thinking in dollars but if guy think in pesos its about 40,000php or around 6.5 months income to a common wage earner there in Philippines, if look at that way fellow will save a boat load of cash by thinking in pesos. Same with most items as well.
I thinking that many folks have gone flat broke by thinking in dollars.
Justin
I now think in US dollars and sometimes when I see a price in pesos and it's in thousands even though, it's only equivalent to a few hundreds here,somehow it feels like the amount is so huge/expensive when expressed in thousands. Do I make sense?
Hi Justin – I would tend to agree with what you are saying.
There you go Bob! I did not read the comments when I put in my own comment and I just saw your last one now, which actually summarizes what I wanted to say. 🙂
I moved and lived in Singapore shortly after Germany dropped the 'Deutsche Mark' and introduced the Euro. So I never really got around to calculating in Euro. Luckily the exchange rate between DM and SGD was 1:1, or a half Euro per SGD, so it was the easiest thing to calculate everything in Singapore Dollars for me. Even now, after living in Thailand, Indonesia and India – Singapore remains my home away from home, so everything is calculated in my head in SGD (or maybe even still 'Deutsche Mark').
When I will move from India to the Philippines probably in just a few months, I'm lucky again. The Indian Rupees is 32 to 1 SGD. Coincidentally that is the case with the Philippines Peso as well, around 32 Peso for one SGD. No big thing to get used to that.
It's simply too easy for me! :-)))
What a coincidence!
I thought I would have been the only one on this forum who also used the Singapore dollar as my benchmark! I lived in Singapore for 7 years before moving to the Philippines. It is my home-away-from-home as well. I make a point of visiting Singapore at least once per year. Very rarely do I try and convert to Canadian dollars, which most Canadians would probably do. But like Bob, I do generally think in Pesos. I only think in my 'alternate' currency — the S$ — when I'm trying to decide whether or not to purchase a big ticket item.
Cheers!
Hi Beth – No worries about having the same thoughts as others, because it is such an easy thing to think. I really think that way too…. Oh, my that is P5,000! Oh… just $100, OK lang… 😆
Hi nomad4ever – funny the way it worked out where the DM was phased out right around the time you left, and thus you still (sort of) use that as a benchmark. I can see how that would be, though.
Do you have an idea where you will be living when you come to the Philippines? Or, you want to "break the news" on your site, I'm sure! 😀
Hi Martin – You have a brother in arms here! 😆
Hi Bob
Anytime I change countries to work, I always have to use the previous countries currency as a benchmark for some time, until I get into the new currency. At the moment it's Kuwaiti Dinars but I used to think in terms of the UAE Dirham when I came here first.
Anything to do with sending Pesos to Philippins, on-line purchases or salaries in other employment I may be looking into, will first be calculated in Kuwait currency and I work from there. I suppose it's easier to get a mental comparison working that way just to keep things in perspective. For example I would not think in Euros, Sterling, Dollars or other currencies now, even though each one of them were my principle currency at one time or another. But no matter what currency I'm in, I always check the Peso rate regularly.
Hi Bob, Living in Austria I naturally think in Euros after 7 years here. But having relations in Canada I must also think in that currency and as so many things are based on the US dollar I must include that one too. Also, I musn't forget my friends in the Philippines so I need the Peso as well. Heading off to my wife's hometown of Budapest,Hungary soon so must also adjust to the Forint (they haven't converted to Euro yet.
One odd thing here in Austria is the number of older people (over 70 or so) who still think in the Shilling (pre-Euro currency). "How much was that? Oh, about 3000 shillings." Really sounds strange.
I was lucky – I had about 6 months with the Shilling and then we converted to the Euro.
Hi Jack – Just having to deal in 3 currencies (Dollars, Pesos, and I have a couple of businesses that operate in Euros) is hard enough. It sounds like you really have your hands full!
Hi John in Austria – I can imagine that it must be complicated for older people dealing with a change in currency like that. I thought all of those countries in that area had already converted to Euros! You are a man of many currencies, John! 😆
Hi Bob – Since Asawa-ko handles the financial end of things in our family, the only currency I think in deals with expiration labels on the Patis bottle! 😆
Hey Paul – Come on, I already have you all figured out… all you think about is provincial living! 😯
Well, Bob, it's the "cultural etiquette" of most Asian countries I've lived in, not just the province! It's definitely one cultural experience I enjoy – after a day of accounting, I'd rather have someone else balance the checkbook! 😉
And HEY! What's so bad about provincial living? 😆
Hi Paul – Nothing wrong with it… I just wanted you to know that I have you all figured out now! 😉
I've been going to the Philippines for over 3 years and still think in dollar to pesos. Since we have a house there I'm always on yahoo checking the rates lol. It sure is nice when it is 50P to the dollar makes it darn easy.
Hi Bilal – Yes, it is looking like the Dollar is going to reach 50 again soon! At least I am keeping my fingers crossed!
Bob,
Whats cause of it? I ask because is odd the Philippines is improving yet their peso has had such decline in relatively short time and at a time when US economy is tanking. Do you feel it legitimate or is it just another currency manipulation? I had been wondering if maybe they devalue it to help exports and keep cash remitting OFWs happy in light of world economy.
At same time bad as well as will make oil and imports higher as many imports are dealt in in USD and OPEC doesn't accept pesos, those costs will surely be passed to consumers, bad for local folks for sure who not engaged in export business or have overseas money source.
Justin
Justin – Almost every Filipino these days has some type of foreign money coming in, either directly or indirectly. Family members working abroad, or whatever.
I do feel there is some manipulation, but currency markets work in strange ways, no doubt.
Bob,
Actually sounds sad to me that they are dependant upon foreign currency remittances for survival but it is good that they have that. I agree many if not most Filipinos surely have OFW relative sending money but most do not receive much remittances really and sadly many wait for said remittances rather than creating opportunity. I often wondered rather remittances are a help or a hindrance to the peoples economic development.
Back to on topic, Truly if person is retired and on fixed income, best thing to do is simply forget dollar exist because thinking in dollars will get a person as broke as playing the keep up with the Ayala game that many expats seemed to love playing at risk of financial devastation. A Person who think in peso and live below their means will do well, good thing is to budget at 1/3 of monthly income and put 2/3 in savings for rainy day or medical care etc.
Justin
Hi Bob- I like the threaded comments addition, unfortunately I couldn't find a similar comment to attach my thread.
Hi Anthony – If there is not a comment that you are directly responding to, you should just leave a regular comment. Instead of hitting one of the "reply" buttons, just leave a comment in the box at the bottom like normal.
😯
If Obama continues on in his current mode, it probably won't be too long before the ratio of dollars 1 $US = 1 Philippine Peso. Indeed, 3rd world socialist country seems to be the aim of this administration.
Hi Spencer – I try really hard to avoid US Political discussions on this site, because it is mostly off-topic. I'll just agree that US Political decisions do have an impact on the Forex rates.
Kamusta ka Bob,
Of course I don't have to deal with this too much yet, with the little money I send to Rose each month for Chesca school. When Rose and I do talk money, and in dollars, she is usually the one that says "How much is that in peso". So I do have to go to my regular site and convert it, I go to coinmill.com to figure it out. But I am getting better at knowing the amounts now.
I also assumed when I get there to Philippines, would be better to forget comparing it to the US dollar, and just think of it in peso's. Unless of course like you and Martin have said, it is a big ticket item.
Learning the value of items and services there is just another step in moving there for me, just like learning the metric system over again for me as well.
Daghang kaayong salamat,
Danny
Hi Danny – Nice to hear from you. The site that I use to check Peso valuation is here. I like it when the peso is 50, because it makes for a simply conversion in your head! 😆
If it has anything to do with The Philippines I mentally convert peso to Dollar. I don't use any conversion formulas, I base the mental conversion on memorable purchases and expenses I made there. I average the exchange rate to about 45 peso to the dollar as I have seen it in the range of 40 to 50.
Here is an example. I chartered a Jeepney for an entire day to take myself and friends sightseeing. Upon the completion of the day I thought about what kind of tip to give the great driver we had. I saw him get through some tight traffic that I know I would not have the patience to deal with that kind of driving situation. I wanted to tip the driver to what I thought was the equivalent of two days pay to him.
After considerable thought and without consulting my Filipino friends, I gave the driver 500 peso as a tip. The driver was almost afraid to accept it but I insisted. My filipino friends were a bit flabbergasted ( I dont know what that would sound like in Bisaya ). I later told my friends I gave the driver a $12 tip for 9 hours of professional driving. If I had given the same amount to a driver here for that amount of time, more than likely the driver would have torn it up into small pieces, thrown it in my face, spit in my face and maybe even punch me out ! ( LOL ) . I wanted to express my thanks to that driver for a days work.
500 is an even number when dealing with money and this incedent is one that I will always remember. If 500 peso equals about $12 then 1000 peso is about $25. That is easy for me to work with to get approxamate dollar / peso conversion and close enought for me.
I use a similar method for converting UK Pounds Sterling although the UKP / USD exchange rate is a bit more than PHP / USD so I do monitor that exchange rate a bit more closely.
That is the system that works for me, and most of it is based on not how much money was or was not spent, just a memory of haveing a great time.
I never cease to be amazed at the breadth of knowledge and inight you manage to employ in your columns Bob. Keep up the good work! On another topic, I think the threaded comments is a great idea.
Hi Bob – Wow, I bet that Jeepney driver was really thankful to you for such a nice tip, it must have really made his day.
I am like you with using a mental formula. I prefer to base my conversion on P50:$1, though, then just make a small adjustment to that.
I live in Hawaii, and we use dollars. I say that, since some tourist have asked me that here. But if the conversion to pesos is easy, I might joke with my wife or friends and say the price in pesos.
Bob I do all my calculations in my head .. dollars to pesos,acres to hectors,lbs to kilos,gals to liters,miles to kilometer,oz to milliliter..everything has to be converted .If you just think about it ,it is easy. … Phil n Jess – PS not dueling this time 🙂
Hi Phil – Yeah, I do that for approximate calculations too. If I need an exact measure, I use a program on my PC for that.
It has happened. I don't blame them, though. Hawaii at times can feel like a different country to the people from mainland America. Esp since you hear more Ilocano than English at times here.
I get paid in Euros (and work in Europe) which are transferred into my UK back account, converted into pounds which pay my local bills, pension and such like. Then I transfer again into Peso, since we live in the philippines.