Two All Beef Patties, Special Sauce …
(last updated 10 November, 2017)
Right now I am sure many of you are asking, what the heck does that ancient Big Mac jingle have to do with the cost of living in the Philippines?
Stick Around, I’ll Show Ya’
- 0.1 Stick Around, I’ll Show Ya’
- 0.2 I’ll Let Them Explain, They Write Much Better Than I Do
- 0.3 Here’s The Big Picture
- 0.4 Does That Mean The Cost Of Living In The Philippines Is 50% of The USA?
- 0.5 See For Yourself Here:
- 0.6 So It’s Pretty Much Settled Then, Costs in the Philippines Are Cheaper
- 0.7 Moving To the Philippines Because It’s Cheap Is The Exact Wrong Reason
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Years ago I discovered a financial tool that tells us a heck of a lot about the “value of a dollar” and how much it costs to live in other countries. It’s a long-time product of The Economist, a British publication which is one of the standards of the world on finance and money.
I’ll Let Them Explain, They Write Much Better Than I Do
THIRTY-ONE years ago, The Economist created the Big Mac index as a way of gauging how different currencies stacked up against the dollar. The index is based on the theory of purchasing-power parity, the idea that in the long run, exchange rates should adjust so that the price of an identical basket of tradable goods is the same. Our basket contains one item, a Big Mac.
The latest version of the index shows, for example, that a Big Mac costs $5.30 in America, but just ¥380 ($3.36) in Japan. The Japanese yen is thus, by our meaty logic, 37% undervalued against the dollar…. (Full article here: The Big Mac index)
Now if we transpose that data to the current state of affairs in te Philippines we find the average cost of a Big Mac in July of this years was 134 Philippine Pesos (about $2.60 USD) so the Peso is about 50% undervalued.
Here’s The Big Picture
Interactive Currency Comparison Chart Here: The Big Mac index
Does That Mean The Cost Of Living In The Philippines Is 50% of The USA?
Not exactly, but in general terms, comparing apples to apples … pricing the exact same thing you can buy in the USA with your dollars, your dollar will buy 50% more in the Philippines.
In point of fact, several authoritative sites (sites that use actual pricing reports from people who live in the countries being ranked) rate the cost of living in the Philippines as much as 60% less than comporable cities in theUSA.
See For Yourself Here:
NUMBEO, cost of living, property prices, crime statistics and more.
So It’s Pretty Much Settled Then, Costs in the Philippines Are Cheaper
Yes, correct, but don’t stop reading yet. A good friend of mine, who has lived in the Philippines way longer than I have made a pretty profound statement on this subject. “I didn’t mover to the Philippines for a cheaper life, I moved for a better life”.
Think about that for a while. Let it sink in.
Moving To the Philippines Because It’s Cheap Is The Exact Wrong Reason
Nobody says it better that the old statesman and sage, Ben Franklin.
“The bitterness of poor quality remains long after the sweetness of low price is forgotten”
I moved to the Philippines more than 10 years ago. It was a good choice for me. I’m pretty happy here and have absolutely no intention of ever moving back to the USA.
But I didn’t move here primarily because it’s cheap, and I don’t stay here because it is so cheap. I know places in the USA I could easily live as cheap as I do here. But do I want to live there? heck no.
If you decide the Philippines is right for you, do yourself a favor and make sure that price is not your only consideration. Trust me, if you consider the important things other than cost, you’ll be glad you did.
So that’s the reason for this article featuring Two All Beef Patties, Special Sauce …