Here we go with another “What Does It Cost To Live in the Philippines?” post.

The latest spreadsheet for my expenses seems to be back in August 2009 … I had to change computers in between now and then so I don’t have the spreadsheet directly at hand to referred to.

This is for three adults living in Marilao, Bulacan (on the island of Luzon, just north of Metro Manila).

I did review all the items and very little has changed as of 1 May 2010, except for the cost of electricity … it shot up more than 25% in April (for the consumption period of March) and I expect it to go up farther before it settles.

http://philfaqs.com/wp-content/uploads/2009/09/2009%20Aug%20Current%20Costs.htm

I estimated the increase for the monthly total below:

—————-

In August 2009:

Monthly grand total estimate (in Pesos, of course, that’s what we spend in)
54,654

Today’s USD – Peso rate
48.75

Monthly USD Total
$1,121

Worst rate ever
$1,370   — this is our monthly estimate at the worst peso rate we have seen since 2006

Best rate ever
$979  — this is our monthly estimate at the best peso rate we have seen since 2006

—————

In April 2010:

Monthly grand total estimate (in Pesos, of course, that’s what we spend in)

58,000

Today’s USD – Peso rate
44.465

Monthly USD Total
$1304

Worst rate ever
$1,450  — this is our monthly estimate at the worst peso rate we have seen since 2006

Best rate ever
$1160  — this is our monthly estimate at the best peso rate we have seen since 2006

———-

Now, here’s an interesting viewpoint, with data, from Valerie, one of our valued Filipino readers … also based on the metro Manila area:

Agree that making a living on any income is relative. It’s how you want to live that will make the difference.

I know of a few families who lived on average about $270/month on a single income. Some have successfully sent their children to college too.

If the question was “can I live decently on $770?”…my answer would be yes, if you’re single…and maybe if you are married with 1 child. But again this is relative to your lifestyle.

At $770, you cannot afford to dine out everyday, buy items on a whim or have household help. But live frugally, you may even end up with some money for savings. I would like to share a realistic estimate on actual cost of living for those who want an idea.

I’ve been keeping our family budget so I have a basic idea on the actual costs. These costs will be based where I actually live, that is east of Metro Manila, within the metro area.

Biggest chunk of your budget will go to accommodations, food and utilities, and your child if you have one.

Rent for a decent 2-3 bedroom single detached house will set you off about P8,000 ($178)

3 full/square meals about P9,000 ($200)

power/electricity about P1,700 ($38) if you use the A/C a few times in a month

water – P250 ($5.50)

phone with broadband internet- P1,000 ($22)

Destiny Cable P500 ($11)

Purified drinking water P600 ($13) or less depending on consumption

budget P3000 ($67) for your child every month (this will either go to milk/diapers or school tuition if of school age)

if you are commuting to/from work – P2,000 ($44)

lunch money P2,000 ($44). Non-food groceries maybe about P2,000 ($44).

The rest you spend for leisure or non-work transportation. Take away some of those you don’t need (like cheaper accommodation, no cable or internet, bring lunch to work etc.) you can actually live on less that $770.

So if you are single, you should be able to live in that income. But if you want to live more comfortably, you will probably need about P50,000 ($1,100) to support a family of 4.

Notice that Valerie’s figures and mine are really not very far apart.  Thanks very much for putting in the effort on this, Valerie.

photo credit: ~MVI~

This boils down to one of the simplest questions that most foreigners don’t consider … both my figures and Valerie’s are based on at least one “voting”, adult member of the household being Filipino.  In my case, after nearly 4 years here, I could probably continue close to my present costs if I were not living with my budget-conscious and totally dedicated Filipino spouse … but if it were only me, it wouldn’t be cheaper to live, I’d be lucky to be able to live as a single cost as the cost for the three of us (our college-age niece lives with us while she attends college in Manila).

Another factor I see mentioned constantly, which I personally believe is given way too much emphasis, is location.  I have seen official Philippine government figures that state that Manila is the highest cost area, major provincial cites such as Cebu, Davao, Dumaguete and Bacolod (as a few examples) are 80% of the cost of living in Manila, and minor provincial towns work out to about 60% of Manila costs.

This may be close to the truth for an average Filipino working family … although few of my Filipino friends would agree.  For an American family, or or a mixed Filipino/foreigner family as most of my readers are here, I don’t think the differences are anywhere near as striking.

Now if you lived in a $2200 USD per month corporate or US government condo, of course it costs way more to live in Manila proper.  But very few of us in this general interest group will be living that way.  Rents for livable, but older,modest accommodations don’t vary near as much as you think.  Likewise, although basic raw food at the market is much cheaper in provincial markets, ‘typical grocery store’ items are often more in the provinces and imported items … which we all are likely to “need” some of per month, are either higher in cost or even unobtainable in he provinces.  It doesn’t take many monthly trips to a large city to “stock up” to make the true costs of living in the province come out very close to big city costs.

Also, if you have children and want good schools for them, or if you have any substantial medical needs, it’s going to cost the same or more to live far from a large metro complex.  Close as I live (only about 5 miles from the legal political boundary of Metro manila), my wife and I still find ourselves going into Manila a number of times per month, just to find something basic, like clothes that fit … the selection, in the same stores, inside and outside Metro Manila is striking.

Bottom line?  Don’t select where you want to live based on the continual “chit chat” you hear about the costs of the big cities versus the provinces.  I firmly believe that how you choose to live is going to have way more effect on your total cost than where you live.

So, what else do you need to know?

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