Cost of Living in the Philippines:
Top Expenses Explained + Tips to Thrive in the Country

The Philippines—aptly called the "Pearl of the Orient"—has stunning landscapes, lively cities, rich cultural heritage, and warm and welcoming people. No wonder local tourists and expatriates love exploring the country and consider it home like no other.

Are you looking to move into or around the Philippines? If so, be sure to take your finances into account. It might be one of the most affordable countries in Southeast Asia. However, as with settling anywhere, you must consider the cost of living in the Philippines to budget for necessary expenses and manage them wisely while enjoying the country without financial worries.

7 Top Expenses in the Philippines

Here's a closer look at the average cost of living in the Philippines by classifying expenses into key categories:

1. Housing
   
   Finding and securing a home is among the most critical and costly expenses. The average rent in the Philippines varies widely depending on location and property type. For example, the cost of living in Manila, particularly a standard one-bedroom apartment, ranges from ₱20,000 to ₱35,000 per month. Of course, these rates are much cheaper in provinces.
   
   Even areas outside the capital aren't safe from rising housing costs—with the cost of living in Cebu City, Philippines, being a prime example—as more regions urbanize.
2. Food and groceries
   
   Food prices worldwide are trending upward and the Philippines is no exception. Reports show that the average Filipino spends roughly ₱4,900 per month—or ₱145,900 yearly—on food and groceries. Naturally, the cost of living in Makati and other primarily high-income areas is much higher, owing to pricier grocery items.
3. Transportation
   
   There's no cause for concern when it comes to getting around the country for its many locals and tourists. The Philippines has an expansive and inexpensive public transportation network that will take you through cities, between provinces, and even into highly remote areas.
   
   For example, traditional jeepneys start at ₱13 per ride and go upward at an increment of around ₱2 for every few kilometers of travel. Jeepney rides to and from work on weekdays cost roughly ₱550 per month. In Metro Manila, you can also ride the more budget-friendly Metro Rail Transit (MRT) and Light Rail Transit (LRT) services.
   
   However, car ownership is a different story. Gas is a bit pricey and can be even more costly due to fuel consumption in heavily congested traffic.
4. Utilities
   
   Water and electricity costs in the Philippines vary depending on location. Expect to pay around ₱10 per kilowatt-hour (kWh) of electricity. So, if your household consumes an average of 200kWh per month, you'll likely pay ₱2,000. Electricity prices tend to shoot up during hot-dry months (March to May) due to the low supply and high demand from heavy air-conditioning use.
   
   Meanwhile, water utilities are easier on your wallet. Maynilad—one of Metro Manila's water providers—costs roughly ₱50 per cubic meter (m3) you consume, translating to around ₱400 every month for a household average consumption of 8m3.
5. Healthcare
   
   Unlike some countries, the Philippines doesn't have fully universal healthcare. Instead, it has the Philippine Health Insurance Corporation (PhilHealth) covering a percentage of payments for several health conditions and medical needs. Check out PhilHealth's complete benefits here.
   
   In general, the country boasts accessible healthcare. Filipinos may easily access free medical assistance from select government agencies and barangay, municipal, or city health centers. Pediatric medical missions are also typical among schools in low-income areas.
6. Education
   
   Are you a student, or do you have a kid? You'll be glad to know that the country's public K-12 education is free! Most cities, municipalities, and provinces have regional and national elementary and high schools providing free education to children from all walks of life. Alternatively, you could enroll in one of the nation's over 12,000 private schools.
   
   State universities and colleges also offer free tertiary education. For instance, entry to the University of the Philippines, the country's premier and world-ranking university, is free—provided you pass its stringent requirements and examinations. Meanwhile, several private and government agencies offer scholarships for top-performing students to make their education even more affordable.
7. Entertainment and leisure
   
   After a long day at work or school, relaxing your mind and body with a good downtime is essential. Fortunately, the Philippines has countless malls full of restaurants, entertainment, and leisure establishments. Movie tickets typically cost between ₱200 to ₱700, depending on the theater's location, film showings, and amenities. Meanwhile, you can get massages and spa treatments for as low as ₱350!
   
   Do you like dancing and drinking with friends? Most cities have bustling nightlife scenes, from inexpensive bars to members-only clubs. But then again, it's more practical to invite your friends for beers, karaoke, and conversations at home instead!

11 Tips to Cut Cost of Living in the Philippines

You can afford to live in the Philippines if you're smart about your finances. Here are some ways to minimize your spending:

1. Create an extensive weekly, monthly, or yearly budget
   
   A well-thought-out budget helps categorize your income and avoid overspending so that you live within your means. Start by listing your cash flow, then determine how much of your income to spend on wants and needs and to save. Ideally, you track your spending to identify areas where you can cut back.
2. Establish a savings account
   
   A savings account lets you store unspent income instead of holding on to it. In doing so, you can take advantage of high interest rates and outpace or at least keep up with inflation. This account may also serve as an emergency fund to ensure you're ready for unexpected expenses without putting your financial stability on the line.
3. List your shopping items
   
   Impulse buying can decrease your savings. So, before shopping, it's best to list what you need and stick to it. Avoid buying things that are not a part of your essentials. This practice helps you avoid unnecessary expenses as you distinguish between wants and needs.
4. Cook and plan your meals instead of dining out
   
   On average, Filipinos spend ₱100 to ₱150 per meal when eating out. While this amount may seem acceptable, it does add up over time. So, consider cooking at home instead of going to restaurants or ordering takeouts. It doesn't have to be tedious—preparing your meals in bulk and storing them for consumption a day or two later saves you time and reduces the temptation to eat out.
5. Select an inexpensive but comfortable housing option
   
   Living in trendy neighborhoods and luxury properties might be tempting, but choosing more affordable housing options saves you money. Are you a remote worker? Consider residing in mid-income provinces where costs are lower than in major cities. If you need to live in expensive areas, you could share an apartment with roommates to minimize your housing expenses.
6. Consider debt consolidation
   
   It's no secret that juggling debt, especially multiple balances, simultaneously can be stressful. However, you can consolidate them into a single loan to make repayments more manageable.
   
   Ask your bank for available debt consolidation services; it may entail high interest rates, but you'll have an easier time paying it off. Consolidation may even save you money in the long run if you manage to pay it off quicker than you would've otherwise!
7. Adopt a sustainable lifestyle
   
   A sustainable lifestyle isn't only about being environmentally friendly—it's also cost-effective. Turning off lights and appliances when not in use reduces your carbon footprint and electric bills. Likewise, riding public transportation instead of buying a car and paying for gas saves you a lot over time. Small changes like reusing paper bags significantly cut your living costs, too.
8. Secure less expensive insurance
   
   Insurance is crucial to future-proof your finances from unforeseen circumstances but avoid overpaying for unnecessary coverage. Are you young with a low risk of critical illnesses? You might want to remove that coverage from your policy. You could shop around and compare policies to find the best one that meets your needs without unnecessary add-ons.
9. Find the right credit card based on your lifestyle
   
   Having a credit card can make shopping more budget-friendly by offering rewards like cashback, discounts, and exclusive deals on every purchase. It also provides the convenience of flexible installment options, allowing you to spread payments over up to 36 months.
   
   Additionally, strategically using multiple credit cards tailored to your spending habits and reward preferences lets you maximize benefits, minimize costs, and enjoy a more personalized and rewarding shopping experience.
10. Own more than one credit card
    
    Not many know that having two or more credit cards unlocks even greater rewards and cashback opportunities compared to relying on just one. To make the most of this, ensure your cards align with your spending habits—such as choosing one tailored to your go-to supermarket—so you can rack up points faster and enjoy more exclusive perks.
    
    However, owning multiple credit cards can be a double-edged sword. While they provide flexibility and increased benefits, using them irresponsibly could make it difficult to pay off balances on time, potentially harming your credit score. Responsible management is key to reaping the rewards without the risks.
11. Leverage installment plans for budget-friendly spending
    
    When facing significant expenses, such as purchasing appliances, gadgets, or furniture, installment plans can be a lifesaver. These plans allow you to spread the total cost over several months, making it easier to manage your cash flow without draining your savings in one go.
    
    Many stores and credit card providers in the Philippines offer zero-interest installment options, enabling customers to enjoy their purchases while paying only the actual cost over time.
    
    By incorporating installment plans into your financial strategy, you can maintain better control over your monthly budget while still affording the essentials or occasional splurges.
    
    This approach also reduces the stress of large, upfront payments, allowing you to allocate funds for other priorities, such as emergency savings or daily necessities. Just ensure you understand the terms and stick to the payment schedule to avoid penalties or extra charges.
    
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Save More in the Philippines

Life in the Philippines is affordable, but that doesn't mean you should forget to save. Minimizing your expenses by taking advantage of social services and managing your finances wisely can help you build wealth more efficiently and enjoy a comfortable lifestyle in the Philippines without worrying about your wallet.

Worry even less about your finances with RCBC Credit Cards! Enjoy zero-interest installment options for three months with UNLI 0% or opt for longer terms of up to 36 months with minimal interest thanks to our UNLI Installment service. You also get free budget management features, plus round-the-clock customer service for disputes and inquiries.

Apply for a card today, or contact us to learn more!