How to live luxuriously in the Philippines with a monthly income of $2,000
Do you envy the life of luxury enjoyed by people in developed countries, wishing that you too could live such a life but without the $10,000 monthly income necessary for such a life? Well I challenge you to consider living in the Philippines either full time or part time. Retirement is not a matter of age; it is a matter of having enough continuous income. With a monthly income of $2,000 (or pension or annuity), one can truly live a life of luxury. I present how this is done and list the main expenses of living in the Philippines as a foreigner.
#1 DO NOT LOCATE YOUR RESIDENCE IN MANILA.
Manila is a bustling and exciting city, but full of congestion and expensive real estate, just like any major city in the Western world. The further you go from Manila, the lower the cost of living accommodations. Of course, there is always the trade-off that the more remote the location, the less comfort and comforts of the western world you will find.
For this reason, I always advise people to consider the major secondary cities of Cebu or Davao, or the Subic Bay area, or tourist or university communities such as Baguio, Dumaguete, Tacloban and Cagayan De Oro. The cost of housing in these areas is substantially below Manila, yet they have easily available air access in and out of the community, and because foreigners tend to prefer residing in these areas, there are more upscale living accommodations to choose from.
The two cities with the most luxurious accommodations for a Westerner, outside of Manila, are Cebu City and Davao City.
In these two cities, you can expect to pay anywhere from $300/month for a small apartment to $800/month for a luxury home in a gated community with a pool. A similar rental in the US would cost between $3,000 and $4,000 per month. A similar house in Manila would cost between $1,500 and $2,000 per month, or more, depending on the location in Manila.
#2 HIRE A COUPLE OF MAIDS AND MAYBE A DRIVER.
For luxury living, you’ll want a couple of maids, one to cook and shop, and one to do laundry and clean the house. They will do all the grocery shopping (at a lower cost than you could ever get), wash and iron all your clothes, and have your favorite food ready for you at every meal. A true luxury that is completely unaffordable in the western world on $2,000 per month. Two housekeepers would cost less around $100 to $120 per month.
You would probably want a driver if you decide to buy your own car. While living in Cebu City a few years ago, I had a new vehicle that I drove myself, but I soon found that by hiring a driver for $80 a month, the vehicle was always kept in perfect condition and had someone service it. vehicle while at restaurants, shopping, or on business appointments. I never had to worry about where to park the vehicle or petty theft or destruction of the vehicle. As I live in Butuan City, I tend not to use a personal vehicle as much, but I’ve found that it’s still worth having a driver.
#3 BUY A GOOD INTERNATIONAL HEALTH INSURANCE PLAN
With a monthly income of $2,000, I would not opt for the local Philippine health insurance programs, but would buy an international one for foreigners living abroad. Depending on her age and previous conditions, a policy that she would pay $500 per month for in the US would cost her around $200 per month.
#4 ALL OTHER ITEMS
With your housing, maid services, transportation, and health care provided at approximately $1,200 per month, this leaves you $800 per month for everything else. Utilities (electricity, water, phone, cell phone, high speed internet service, and cable TV) will add up to about $150 per month, bringing the cumulative total to $1,350 per month.
This leaves $650 a month for food, entertainment, gas for your car, travel, personal care items. Groceries will cost around $250 a month, and fuel and personal care items could add up to $50 a month, leaving about $350 for restaurant meals, entertainment and travel. Dining out a couple of times a week and entertainment per month would cost about $200 per month, so you would still have $150 per month of surplus funds for savings.
CEBU CITY OR DAVAO CITY – WHICH TO CHOOSE?
Each is different from the other in many ways, and Davao City costs of living are less than Cebu City, so your lifestyle there can be even better.
Cebu has a large population of foreign retirees relative to its population. Foreigners are attracted by the abundance of beaches and resorts. It is a beautiful city, surrounded by mountains on one side and the ocean on the other. Like Manila, it also has its modern and exclusive shopping malls, casinos, and great nightlife.
Those who love to live near the coast, have an interest in scuba diving and other water sports, but like the efficiency and conveniences of a smaller modern city, then Cebu City would be your choice.
Davao City is THE city of Mindanao, and by square miles it is the second largest city in the world. Its population is approximately 1.4 million. Located in southern Mindanao, it is the more rural of the two cities and has the lower cost of living. So if you enjoy a big city lifestyle and want more money in your pocket at the end of the month, then Davao is the place for you.
Davao City doesn’t see as many foreign travelers as Cebu City does, but for those looking for outdoor adventures, the options are plentiful. Living in Davao is a bit like living in both an urban and rural city, as the city has modern shopping malls, luxury gated communities, and hotels, but living there you are deeply rooted to the land outside of the city.
The important thing about living in the Philippines is doing your research, based on your wants, needs, and desires, and connecting with someone who has gone before you and can provide wisdom by guiding you through the variety of questions and anxieties.