Oh boy, yet another of those, “Can I live on $770 (or $900 or $1300 or $1500 … pick your poison) Dollars in the Philippines” stories, is it?
Well, no, re-read the title. How much you need is kind of independent from how much things cost, because what you actually have available is really always going to dictate how much you actually spend. You can’t (long-term) spend more than you have (unless you’re the US government, and you can see how badly THAT is going, so let’s not go there ourselves).
From all this information and more, I can make an educated assumption that an average US couple or small family is going to spend about 40% less in the Philippines, overall.
The US national Median Family Income for 2012 is just over $50,000 USD per year (median means an equal number of families make less and an equal number make more.)
So if you make $50,000 USD per year, you need 60% of $50,000 ($30,000 USD) in order to live in the Philippines, right?
Well, not quite, the way I figure.
- 1 Well, not quite, the way I figure.
- 2 You’ll Get a “Bump” Just To Retire
- 3 But Dave, I Don’t Even Know How To Get $2100USD per Month. It’s Hopeless
- 4 Related Posts
- 5 Share this Article:
Most people read articles and do planning like this for two main reasons.
- In order to decide if they can afford to leave their current employment to move to the Philippines and earn a living there.
- Or to decide if the retirement income they have (or expect to have) will be enough to live in the Philippines without going under.
If you are making $50,00 a year in the US, you certainly sho0uld be able to live in the Philippines for less than $30,000 … and here’s why:
- First of all, just going to work costs you money. Clothes, lunches, transportation and such.
- Taxes Federal, State, local in some cases), Social Security, Medicare, 401K or other retirement contributions and so on.
- Child care, perhaps, and other costs that “just happen” because the bread winner is not home and can’t take care of things him/herself.
You’ll Get a “Bump” Just To Retire
When I retired from Federal service, for example, I got more than a 12% “bump” in gross income just because of all the many “take outs” I didn’t have any more … and who knows how much more from things I didn’t spend on .. like business trips where my reimbursement didn’t always cover all expenses, miles I drove for work purposes I didn’t get a chance to claim for compensations, etc.
Let’s be conservative and say 10% for an average NOT to go to work any more. I ran this past several friends and they felt it was overly optimistic. But consider this:
If you and your family are surviving, living OK, feeding your kids etc. on $50,000 a year now, and you didn’t even have to go out of your house except when you wanted to, couldn’t you ;live on $45,000 a year ($50,000 less 10%) ? I certainly think so. Just the savings in driving alone would add up to that much or more.
So that means you should be able to live at an equal level of comfort in the Philippines for perhaps $25,000 a year. Call it $2100 a month. In seven years living in the Philippines my wife and I have seldom spent more than that per month …
When We Did Spend More We Got Good Value For Our Money
During the times we exceeded $2100 a month we have bought and paid off a brand new car, sent our niece to college (I’m proud of her brand shiny new BS degree, absolutely zero student loans) (and she found a job with a large, US-based company that you would recognize in a heartbeat of I told you) before she even graduated. Jobs are hard to find in the Philippines? Maybe not.
We also bought a house which will be 100% paid for next December.
The car is very much a luxury, and the house .. well money-wise we would have been far ahead in financial terms just to keep on renting at the whopping P7000 a month we were paying. It was certainly an emo0tional decision, not a financial one.
$2100 a month is Living GOOD in the Philippines
All those things considered, again, we seldom have to spend over $2100 USD per month. And I think we live well. My waistline certainly indicates we live way too well when it comes to eating/
But Dave, I Don’t Even Know How To Get $2100USD per Month. It’s Hopeless
Well, perhaps I am an optimist. I am an optimist actually. But even though $2100 USD is not peanuts, but I can tell you it’s hell of a lot easier to come up with than $50.000 USD (which if you don’t have your calculator handy works out to about $4200 USD per month).
Many of you know I am a big advocate of getting yourselves set up with an online business of some sort that pays you no matter where you live .. and no matter how things work out at your current job.
Get Yourself Set Up With $2100 a Month Income Before You Even Move
You are probably expecting a lot of that today, but it won’t happen. I’m already up to my sensible word limit here today … and I don’t want to lose those of you who r4elaly need to learn how to go from “Hopeless” to “highly Successful”.
It would be extremely disingenuous of me .. in other words, I’d really be “blowing smoke” if I tried to tell you that setting up a business from scratch to make more than $2000 a month from it. Even though I know plenty people who make that much and more (in some cases a way lot more .. they likely didn’t start at that sort of level … and they often earn from more than one business.
But what I am going to tell you over the next few articles is how you can cut that $2100 a month “nut” down to a very manageable and quite easy to do, one at a time, bite size “junks”.
Easy enough if you approach the problem correctly. And, the less you know about computers and the Internet, the better. No bad habits to break. Stayed tuned …. Meanwhile, let me know what you think abaout this?