Because inflation has raised it’s ugly head in the Philippines lately, it’s time to redress a couple of age old questions: “How much does it cost to live in the Philippines?” and “How much money do I need to retire in the Philippines?” While there is no canned or easy answer to either of these queries, one thing is for certain – you’d better have an income established before you get here! The amount of that monthly stipend really depends on your desired lifestyle. For many that have already experienced the Philippines, either by previously living here or by visiting, they probably have a good understanding their own lifestyle expectations as it relates to their retirement income. For those who have never visited, or have a very limited knowledge of Philippines standards of living, they must either rely on the many forums and blogs (such as this one) to assimilate as much information as possible or, come spend some time here before making any form of committment.
Once there has been committal to settle in the Philippines, the lifestyle one chooses to live WILL be soley dependent upon the level of income one brings with them. And with rising prices due to inflation in the Philippines lately, it is ever more important to make that lifestyle assesement. There are many sites online that might convey a relative cost-of-living based upon individually priced items like rice, beans, fish, and mangoes. Then there are more speculative sites, like one that correlates currency exchange rates between two currencies worldwide based upon the cost of a McDonald’s Big Mac sandwich (called the “Big Mac Index”). It is the same index that gave rise to the word “burgernomics.” It is designed to to make exchange-rate theory a bit more digestible, no pun intended. You can check a sample of how the Big Mac Index converter handles 1 usd in the Philippines below, or visit the index converter HERE to insert your own countries currency.
Here you can check out the 2018 Big Mac Index.
The above method of determining the strength of one’s home country currency has been a popular one for years and is also effective part of the process in assessing just how far your income will go in the Philippines. It’s not an exact science, but it is pretty damn close. A method I always found similarly accurate was the price of beer in a particular country. Most sailors can tell you at the drop of a hat how many beers they can buy in most countries for $10. It is also a good gauge of food costs and other basic necessities when visiting a foreign port, but it in now way can assess actual housing costs and related expenses.
Although the cost of living was not what I really intended to talk about in this post, it is nonetheless an important factor in knowing just how much money you will need to live “your” planned existence in paradise. There are also many articles available that discuss opportunities for income during retirement, but not many that target leveraged income or investments. That is the target of this piece. A valid, yet somewhat speculative way forward to anyone who might be planning for their future retirement in the Philippines.
Well, I probably just lost about half of my readers at the headline above, but that’s okay – some of you will continue reading to learn about the unique possibility of financing your retirement using this different dimension. It’s not really financing, but more like strategic speculation, or leveraging of your savings, that may put the odds of good ROI’s greatly in your favor. While I have only written one other blog article about using cryptocurrencies to live in the Philippines, I have never really discussed in detail the importance of this new technology or the practicalities of smart investing into cryptos, and I have only published one other article that discusses this new blockchain technology… “Live in the Philippines with Cryptocurrency? What Does the Future Hold?” .
These days on occasion, when Bitcoin or cryptocurency arises in casual conversations with friends and acquainences, my experience has been to witness the great rolling of eyes 🙄 or fear 😨. There are two reasons why this happens. One, most people do not understand Bitcoin and cannot begin to discuss it. Two, most people do not take Bitcoin (cryptocurrencies) seriously and cannot begin to discuss it! Most of the people I have tried to engage in conversation just don’t know enough about the subject other than the fearful things they have heard. In investing circles, it is common for people to spread Fear, Uncertanty, and Doubt (FUD), sometimes just to try and manipulate public opinion. It’s just what the banking industry and Wall Street has been doing for years because they admittedly are afraid of what’s coming… loosing control of the people’s money, or “Decentralization” of the banking industry. Today, the banking industry realizes they will not beat crypto’ advances, so they are paving the way to join this revolution… but they aren’t letting on to the general public just yet! Why, because they are not quite ready to capitalize on it yet… and they will… as sure as George Washington’s picture is on the $1 dollar bill.
Just like the “Silent Generation” did not understand VCR’s, they shunned away. “DON’T invest in the Japan” [emerging market] they said! And just like the Baby Boomer Generation today, disrupted by everything from e-commerce to email to text messaging, they misunderstand it and tend to avoid it. Like it or not, the Millenials are in control of where the financial markets will head through 2040. The new bottom line is this: Anyone who doesn’t understand blockchain technology going forward IS going to be left behind, just like every generation is left behind by the generation that succeeds them. I propose that it is never to late to learn something new that WILL benefit multiple generations to come.
So how does all this benefit the prospective retiree to the Philippines? Well, the best explanation is provided in the following video presentation by Thomas Lee. This is one of the best cryptocurrency presentations that I have watched, and it explains precisely why at least a small percentage (5%) of anyone’s investment portfolio should be considered with a cryptocurrency allocation – NOW! And if you can afford to invest more, well… you might just find yourself nicely positioned to not just live in your Philippines paradise, but live very, very comfortably!
Take the time and give yourself a chance. I can only inspire anyone to begin learning today… because tomorrow might be too late! You know what they say about leading a horse to water?
Note: There are literally hundreds (if not thousands) of articles and videos on the internet that can guide one into understanding blockchain technology and the world of crypto. It is definitely a rabbit hole that is extremely deep, and if you enter, you’d better inform family and friends not to panic, that they just might not see you for awhile.