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2/5/13

Philippine Misconception



New Generation of Philippine Money (2011)
New Generation of Philippine Money

It is not cheaper to live in the Philippines


I here so many people try and say it is cheaper to live in the Philippines.  That is a huge myth and misunderstanding.  


When people try and say that they forget to mention the sacrifices that are made and what is given up.

What I found is you spend less money in the Philippines compared to Sugar land Texas.  There are very few 24 hour stores ad very few 24 hour food places.  When you go shopping you are not flooded with impulse items.  They are not marketed to  make you purchase that item you do not need.  So that brings on a savings all its own.  Lets also look at the population and look at the money people have to spend when they do shop.  The selection on the higher price items becomes more limited.  Looking for a selection of cheese or a good bottle of wine.  Well they just might not have it.  So here again you pass and do not throw that in the cart.  Another unseen savings.

Moving forward to housing.  How many cities in the US could you rent a  900 sqf town home for $375.00 a month?  There are not many and really this seems like a huge bargain   Yet lets look at what you get for your $375.00.  Most 90% or better that you rent will not come with Hot and cold running water.  The also will not have a stove or range to cook on.  The restrooms generally do not come with a shower and are also very small in size.  Each room in the house generally only come with 1 outlet for the entire room.  They also will not be equipped with Air conditioning.  The homes are not well insulated if insulated at all.  So you will use more electricity to run the air conditioning if you choose.  Most people do at one point or another.  So yes you will see a saving there yet there is a price to pay for this savings.  

Most things you purchase in life are a commodity and traded on the open market through out the world.  Those things are going to be equal in price and higher if they need to be imported.  Additional most things here are charged a 15% value added tax.  So it causes those things to be higher in price. So items that are in these categories are generally higher.

Dave Salon Cebu city hair cuts and more
Where there does seem to be a huge savings is on services.  The average daily wage in Cebu Philippines is right at $9.00.  So there is a huge saving with labor, taxis and anything that is service related.  You will save huge money.  Example day for the wife at a top of the line beauty salon, Hair, Nails, and toes.  Would be around $30.00.  Because it is all service related so you can save huge money on these they of things.  

All in all what I have found is not that Philippines is cheaper.  It just allows you to live a cheaper lifestyle.  It affords you an opportunity to live less expensive.  Yet you can not move from X to Z and expect it to be cheaper without some sacrifice.   

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