How Much You Need to Earn to Live Comfortably in Manila

Despite the rising living expenses in Manila, the Philippines' capital city is still a popular choice among locals and expatriates when it comes to choosing a place to live in. The city center offers a vibrant and comfortable life as it is near most places of leisure activities and major business districts. But do the rising transportation costs and food costs as an impact of inflation make living in Manila worth it if you compare the cost of living in other major cities in Southeast Asia?

One factor to look at would be people's lifestyle demands and the average salary they earn to cover the monthly cost of living expenses entailed by that lifestyle. According to Salary Explorer, the median or average monthly salary of an average person working in Manila is 53,200 PHP (before taxes). The lowest average salary one can earn in Manila is typically 13,500 PHP and the highest average salary is 238,000 PHP.

Another salient factor to consider is the estimated monthly costs that cover rental costs or shelter, transportation costs, food costs, utility bills, and healthcare. Of course, a single person would have an easier time covering the average monthly cost and still save money. A breadwinner for a family of four will have to have to consider more than twice the average monthly cost.

How much salary do you need to live comfortably in Manila?

According to Filipino Wealth, to live comfortably in the Philippines, a single person will be able to cover the basic cost of living plus miscellaneous and leisure allowance if he or she has a salary of around 30,000-40,000 PHP. Choosing to live in Manila, however, will cost higher by around 10,000-20,000 PHP due to higher rental costs, transportation costs, and food costs. This means to live comfortably in Manila, one must earn around PHP 50,000. This means that a person earning the average minimum wage of 13,500 PHP will be struggling to make ends meet or will have to take on multiple jobs.


How much does a family of four (estimated) monthly costs?

A breadwinner needs to cover at least 94,000 to 111,574 PHP for four people to live comfortably in the metropolitan area. Daily expenses aside, the higher cost of living is due to higher rental rates for a two bedroom apartment or a three bedroom apartment compared to a one bedroom apartment. Rental costs are also affected by which area in Manila you live in. The closer you are to a business district, the higher the expenses if you compare cost to remote areas.

How to live comfortably in Manila (and save money at the same time)

Your monthly income will naturally impact how comfortably you live. While choosing a studio apartment in Makati will cost more money than a one bedroom apartment in Pasay, being near a central business district will also have its perks like cheaper transportation costs when commuting to work, saving on energy and time (especially during rush hour), and access to the best medical care.

Keep in mind that a higher salary also requires more responsible financial planning. Because living expenses in Manila is high and volatile, having a contingency fund to cover an unexpected increase in monthly costs is a must.


Here are tips to help you save money and maintain your lifestyle:

Have a budget and stick to it

It's easier not to overspend when you have your monthly estimated costs budgeted. Planning out every detail of your daily, weekly, and monthly expenses helps you keep track of how much you spend and save.
  
Have your go-to local markets and shopping areas

It's easy to get carried away by the ambiance in Manila's high-end malls. While it's nice to window shop and lounge around in those luxury places, knowing where to get cheaper groceries in local stores and shopping areas helps you spend less than necessary monthly.

Watch out for sales and good deals

Being financially savvy means spending only on what you need. When it comes to your "wants," timing is everything. Be in the know when annual sales of brands you love are coming up. Waiting for better deals online is also a great option when it come to spending outside your monthly costs.


Be a wise commuter

When push comes to shove and fuel prices keep on hiking up, having plenty of commuting options will help you save money. Instead of succumbing to the price surge of ride-hailing apps or filling the gas tank even though the fuel hike is out of your budget, you can choose to walk and stretch your legs especially when your destination is nearby. Riding via a bicycle is also a great way to improve on your cardio. Knowing shortcuts or leaving home ahead of the traffic jam are all ways to be a wise commuter.


Think long-term and start investing in your own home

Starting to invest in your own home is a great long-term plan when it comes to saving. Having to pay for rent for the rest of your life, might not be sustainable especially when you plan to retire. Also investing in residential and commercial properties is also a nice way to future-proof your life. Instead of spending on luxury items, put your money on investments. This is an excellent means of ensuring you will live comfortably in the future.