Is it possible to live well in the Philippines with 1000 usd per month?

This is a very common question among people from countries like the USA and Europe, who are contemplating to live for longer periods abroad, either as just a long time tourist, or for retirement:

How much can I live on in this or that location?

The immediate answer when it comes to the Philippines, is that YES! you can stay there in a decent way for 1000 usd a month.
If you are desperate,  you can survive in the Philippines on even a smaller amount.

I have lived for quite some time in both Thailand, Indonesia and in the Philippines on a budget of 850 usd a month, so I can try to share some of my experiences.

In Thailand, I have lived for around 3 years, in Bali for 1 year, and in the Philippines for around 3 years.
Due to my low budget, I have had to lower the costs until a breaking point, not having a decent living situation really. But sometimes we do not have many other options, unfortunately.

Here I will present some figures about what it will cost for a Western man to have a normal good life in

THE PHILIPPINES: 1080 usd/month

 The Philippines has some advantages over the other 2 mentioned countries when it comes to culture, language and immigration friendliness.

Some of the main reasons for Western people, especially from cold countries like myself (Norway), to go to South East Asia, is to be able to enjoy beaches, swim in a pool, enjoy eating out for a cheap money and also to explore the area or the country. All on a small budget...

Finding a loving partner is also high up on the list for many who go to this part of the World. And here, the Philippines has a great advantage over other countries in the Region, as many Fillipinas speak well English, and respect "Americanos". They also tend to value Christian values, even if the country is full of bandits, thiefs and whores as well.

HOUSING: 350 usd/month

The Philippines have the worst offers among the 3 above mentioned countries when it comes to housing for travellers who come to stay temporary.

It is quite impossible to find affordable fully furnished rooms with a central location, close to a nice clean beach open to the public, and with a great infrastructure built to cater for long and short term tourists.

The general standard on hotels etc is usually much lower in the Philippines compared to similar countries. The cities are usually too cramped, with a very bad infrastructure. Many beaches are too polluted, or have been fenced in by some resort owner, so you must pay a fortune to enter it.

The larger cities in the Philippines are basically not very liveable for people who come from my part of the World. They seem run down with old ugly buildings, a lot of polluting smoke from old vehicles, a lot of garbage and slums.

If you want to rent a fully furnished studio apartment in a nice neighbourhood, with access to amenities like a pool, a gym etc, you will basically struggle if you have a low budget.

Most "affordable" places come unfurnished, and the owner will usually ask for a 1 year contract, and with 2-3 months advance payment/security deposit before they will let you in.
It is very hard to find nice second hand furniture and appliances. And new items like appliances and furniture are more costly in the Philippines compared to other countries in the Region.
IKEA have warehouses in Thailand and in Indonesia, but only a small outlet in Manila that do not offer the low cost high quality stuff that I can find in their large shopping malls in other countries.

While in Thailand you can find a wonderful, fully equipped studio apartment with access to pool, gym, parking space and vicinity to clean beaches, malls and very good infrastructure, the story is very different in the Philippines.

Renting a fully equipped condo or studio apartment, will cost you at least 20 000 pesos without electricity, internet and water bills. They will also ask for 2 months advance rent (at least) and a large security deposit.
In Thailand, I can in many places just walk right in, pay 5000-7000 baht (around 8000-11000 pesos) for a month, ex utilities. And the location if far better than any place in the Philippines when it comes to what is around for people who like touristy activities.

Now, living in a big city in the Philippines is therefore NOT recommended if you have a choice.

The provinces are far more attractive, but again, you will have to cope with bad infrastructure, no taxi, no ATM, no aircon, not decent quality of the buildings etc.

In that sense, both Bali and Thailand (and Malaysia for that matter) can offer way better housing in a Tourist friendly environment for the same amount, or cheaper.

I would say that the minimum amount you should expect to pay on a monthly basis for a decent place that has an attractive environment, would be at least 18 000 pesos included utilities.


You might get much cheaper rooms too, but then the standard and the area will be very different: A simple matress on the floor, shared bathroom, fan only, plenty of insects both on the ground and in the air etc. for around 5000 pesos = 100 usd/month, but you would rather save on other expenses than to go that route, I hope.

But for the sake of making here a low budget, let us assume that you can rent a good place for 18000 pesos a month, including utilities. That is 350 usd/month

FOOD AND DRINKS: 330 usd/month

Your monthly budget for food can vary greatly, from spending 250 pesos a day, only eating local dishes like fried rice, soups, barbecued meats etc, and up to unlimited spendings on steaks, imported foods, wine etc. So to give people a fair chance to live on a low budget, I suggest you can spend 300 pesos a day = 6 usd x 30 = 180 usd/month.

You can get cheap purified drinking water from water stations in large plastic gallons of 25 liters, so water is not a big spending issue really: 30 pesos a day is plenty: 39 cents x 30 = 18 usd/month

A small bottle of domestic beer cost around 35 pesos = 70 cent. If you can limit your beer consumption to 4 small bottles a day, that is then roughly 150 pesos per day =  3 usd x 30 = 90 usd per month for alcohol.

A large bottle of soft drinks cost around 65 pesos = 1,3 usd x 30 = 40 usd per month for soft drinks.

A total of 330 usd/month

LEASURE AND ENTERTAINMENT: 220 usd/month

Living in a place like this demands that you sometimes go out to enjoy some good food, drink and entertainment. So to allow for this on a restricted scale, let us say that you spend 2500 pesos per week for this purpose, that is 50 usd per week x 4 = 200 usd/month.

Going to the beach and rent a chair for the day, under an umbrella, if such a service exist, will cost around 100 pesos or more per day, so let us say you go to the beach 10 days per month, that will be 1000 pesos = 20 usd per month.

A total of 220 usd/month.

These figures are for a person who really has a tight budget, it is possible to spend 100 usd per night if you are wreckless!

INTERNET AND TELEPHONE: 30 usd/month

Internet is quite bad in many areas. Some places the WiFi might be included in the rent. But if not, you can expect to pay around 1500 pesos for internet load = 30 usd/month.

Having a local SIM card for calls to friends in the Philippines will cost around 500 pesos/ month on that: 10 usd/month.

Making it a total of 30 usd/month for limited but still acceptable internett and phone usage.

TRANSPORTATION: 100 usd/month

By this, I mean the daily local travels within the area you live. There are many options in the cities for public transportation. Using a Taxi is often a good idea outside of Manila. But in Manila, they often refuse to use a taxameter, and basically rip you off on local trips. You should use the app called GRAB if you need to use a taxi.

A typical trip with a metered taxi will cost you around 100 pesos = 2 usd for 3-4 kilometers.


Another option, however NOT recommended due to cramped space and lot of thieves, are the Jeepneys. A Jeepney fare is around 10 pesos for a normal trip within a city.

In some smaller towns and cities, Taxis in the form of a car are not easy to find. But TRICYCLES abound both in the cities and in the smaller towns.
Some places they are the ONLY option for local trips, and will cost you around 10 pesos for a kilometer or so, all depending on local regulations. You might have to share it with other passengers. If you want to have the tricycle all for yourself, be prepared to pay 30-40 pesos for a 3 km ride. Tricycles are usually very cramped, it is not easy for a big "Kano" to be a passenger in one of those.

Otherwise there are - in the smaller towns and provinces - the so called habal-habal: Motorbike taxis that will bring you around from 20 pesos up to 120 pesos etc, depending on the distance. Be sure to agree on the price before you take the ride.

So let us suppose you spend an average of 160 pesos = 3 usd/day on local transportation, it will cost on a monthly basis roughly 100 usd.

A better option, if you can, if you have the skills, the guts and a valid Driver Licence for motorbike, is to find a rental motorbike. I do not know the current prices, as they are very hard to find, and in one case in Cebu I was asked to pay 40000 pesos in deposit for a bike that was not even worth that amount, so I declined the offer.

What I have done during my years in the Philippines, is to buy a motorbike brand new from the dealer, with downpayment and monthly installments. My current bike, a Yamaha 125 YTX business model cost cash around 50 000 pesos. I paid downpayment 4000 pesos, and with a 2 year payback plan, I pay around 2700 pesos a month. That is 55 usd/month on a vehicle that you will finally own (unless the family of the gf or whoever has their name on the documents steal it, as they did with my first bike in Cebu). So if you add gasoline 800 pesos (16 usd) will give you 14,5 liters for local trips per month, you should spend approximately: 70 usd/month for local transportation with your own motorbike.
But since you have to invest in the bike, making a down payment, it is fair to put the average cost of local transportation still as before stipulated, to a 100 usd/month, even if you drive your own bike.

VISA costs: 50 usd/month

If you plan to stay by renewin the Visa waver of 30 days that you get upon arrival in the Philippines,  that will cost you 3030 pesos = 60 usd. You can pay this upon arrival I think, if you know that you will stay longer than 30 days. So it saves you the hassle of getting from where you live to an Immigration Office. This first renewal is valid for 29 days. Then you have to get an extension for another 2 months, that will cost you 4900 pesos (95usd) + 50 usd for a mandatory Tourist ID card + 500 pesos (10 usd) as a manadatory express fee for the said card. So at this time, you pay in total 155 usd, good for 2 more months.

The process of Visa extensions are a bit confusing in my mind right now, but according to what I remember, I paid every 2 months around 3050 pesos = 60 usd for further extensions valid for 2 months.
So if you stay for example 6 months non stop in the Philippines, your total Visa costs are 275 usd, making it an average cost for Visa to be around 50 usd/month

SUMMARY

So let me sum up the amount for basic good living in the Philippines on a monthly basis, for a person who stays for 6 months on a Temporary Visitor Visa:

Housing, included electricity and water: 350 usd 
Food and drinks: 330 usd
Leasure and entertainment: 220 usd
Internet and telephone: 30 usd
Transportation locally: 100 usd
Visa costs: 50 usd
Total basic expenses: 1080 usd/month

+Recommended:
Health insurance economy local offer: 120 usd (depends on your age and condition etc).

A total of 1200 usd/month


You might skip the health insurance, but not smart! (I did, coz I did not have a budget for it. It meant that I have had some struggles when I needed medical attention.)

  In addition to the above showed budget, you will need to have money for flights, hotels etc if you need to go home or leave the country for some reason other than mentioned here.

Medical expenses will also vary from individual to individual.

The result is really up to your lifestyle and your choices.
Do you have vices? it will add on to the costs, obviously.

Do you get involved with women? You are due for a financial challenge if you try to do it on 1000 usd a month. However, if you find a wife, a decent and good woman, you can still live on this budget in the Philippines. Remember: the younger and hotter she is, the larger is the expected pay, ha ha.

But it is absolutely possible to live a decent life in the Philippines for a budget of 1000 usd/month!

WHERE TO LIVE

As mentioned earlier, I personally will recommend people to get out from the big city centers, so they can observe the natural beauty of the Philippines, and also get to know the locals.
I will strongly recommend living in Mindanao. It is a gem! Of course, do research and avoid the Muslim areas.

Finding a local room with fan only might be a solution for a person who can tolerate the HEAT, but if you can not, you should find a room with Airconditioner.

Or simply just stay in a cooler climate.  

Baguio might be the place for you...