Youโre probably wondering how someone, despite just having gone through college, can live on $350.00 a month. The short answer is that living expenses in the Philippines, or just Southeast Asia in general, is quite low.
What is the cost of living in the Philippines?
Make no mistake, $350.00 is not HUGE. There are people out there who claim that $250-$350 is a kingโs salary, especially the Internet marketing โgurusโ.
Anyone who says that you can live the American dream for $350.00/ month in Southeast Asia has clearly never lived here. And just to set things straight, an established physician can make anywhere from $1,500/month to $10,000/month โ even more โ depending on where he works, how much he wants to work, and his specialization. It really depends on the person.
The reason why some kids can live on $350.00 is because
- a) they live at home and
- b) most of them have no student loans.
- c) No bills to pay
The majority of Filipinoโs typically live at home until they get married. And while some end up being the family breadwinners, most just volunteer to give a minor contribution out of respect for their parents.
Another factor that affects the cost of living in Philippines is the fact that they have zero rent, free food, free utilities, and have their parent’s maids take care of the cleaning and laundry. (It seems like a sweet life if you look at it that way, doesnโt it?)
School is also cheaper in the Philippines: the average cost for an expensive, private university is $3,500/year. This includes the cost of books, lab fees, clothes/uniforms, school supplies, and a monthly allowance.
Most students live at home during their college years, but dorm fees typically range from $1000-$2000 per year, depending on how nice you want your accommodations to be.
Most graduates do not have a car, and utilize public transportation. And the Philippines has a kick-ass public transportation system: jeeps, buses, FXs (think minivan), trains. You definitely do not need a car to get around the Philippines. And the few that do own cars do not have any car payments.
The cars are probably gifts from their parents, and most typically share in the cost of fuel.
Providing that you are not the family breadwinner, and you do not have any loans, $350 is more than enough for a recent graduate to live on, and even save a little each month, too! In fact, life is pretty good for the typical Filipino kid until they get married and have children, in which case the tides have turned.
Most Filipinos typically get married at age 28. By then, most grad student would have been done with med school, law school, or their PhDs. And those with undergraduate degrees have been in the workforce for a little over seven years.
Experience Virtual Assistant ask for $600 or more.
At this point, most are expected to have at least doubled their salaries. Which is why most General VAโs with at least five years experience ask for $600 or more, because this is within range of what they should be getting should they have stayed in their jobs.
Most are also encouraged to save during the seven years, enough to at least come up with a down payment for a car and a mortgage.
A family of five (above the poverty line) in the Philippines can survive on $1,300/month (about $900-1000 if itโs outside the city). I say survive because this just covers the basics: schooling for the kids at a public or cheaper private school; food, utilities, rent or mortgage, daily allowances for the rest of the family, and a little left over for emergencies (about $100 worth, which can be converted into savings).
This doesnโt include money to buy a car, and the house may be a tiny split level about an hour and a half away from where they work. It also doesnโt include money to pay for extras such as movies, trips to museums, new clothes, eating out, etc.
3 to 5 years experience Filipino employee is perfect as the team leader
So when you hire someone with at least 3-5 years experience, take a look at their background too. Knowing what the Philippine cost of living will help you decide what exactly fair living wages are.
