Living On $1,262 Social Security

[brock]

If you can live on $1,262 a month in America, WHY cant you live in the Philippines for that amount ?.

[Bruce]

Aircon. A Swede have built a house in Thailand with good issulation, and clever system make heat go up and out, so he almost never need to use his aircon. I suppouse similar can be done in RP. /Hot water. A tank out in the sun cost to build, but not much to use

 

You are assuming some 'seed money' to set things up. I am not. I am only figuring on the person with $450 a month (or more) being able to get to Phils. Stay in a pension house for a month or so or rent a room out on Samar to scope things out and make a semi permanent plan.

 

Seed money is a good thing, if you have it available. Here in the US, depending on where you live... buy a gun when you can while working. It is simply a method of saving IF you can't manage to leave money alone in the bank. Guns generally hold their value (much better than crack n' hoes) so when you are ready to move to Phils for a few months to see if it is for you, you have some 'seed money' available in selling the guns. You do not have to buy ammo or shoot the gun. Just safeguard it until you are ready to sell.  

 

I have a friend who buys 2 guns a month and when he retires, (10 years) his collection would be worth maybe 150K. If he tried to save the money in the bank, there would always be something to come up and then he needs to get the money. If there is a serious issue, he can sell some guns, but that would take a few weeks (find a retail buyer) so that acts as a buffer to help him save the guns. Gold and silver are easier to sell, but then they also are subject to wide value swings.  

 

So, if you have trouble saving and maybe do not like guns or are in a gun hating state... find another vehicle (no, not a car) to invest in as a way to save up for your Phils trip.  

[Thomas]

You are assuming some 'seed money' to set things up. I am not. I am only figuring on the person with $450 a month (or more) being able to get to Phils.

OK.

(When I count normaly, I INCLUDE such investments in my average living costs, but when moving all the way to RP I will have to sell much I need and buy similar again because of the high transport costs, so I suppose my costs will be higher in the startup, because I want a lot of junk   :)

Guns generally hold their value

I prefer investing in things, which go up  :)      

(Mostly I have invested at the Swedish Stock market. I have stayed out for a while, but perhaps I will put some money at the RP stock market, if I will have any left for such after settling down.)

[namoi]

I am in Aus living on the disabilty pension receiving  about $1,600 per month with a small allacoated pension from super, i said small but it helps, how would i go in the Phills??? I have a caravan that i have done up with inverters, battries etc and don`t have to pay rent to anybody as i mostly travel and find a nice area near a river or such to stay and just relax, do a bit of fishing and umm just relax again, i really am interested in heading to the Phills but am haveing trouble working this forum out as i want to learn a bit about the place, I have been to TH and maybe have to end up there, I will not go there on a holiday on a tour package as you don`t get to see the real world.....

[sonjack2847]

I think you would all be shocked if you knew how many people actually live on less and have a good life here. I know of 5 couples who do.

[Dave Hounddriver]

If you can live on $1,262 a month in America, WHY cant you live in the Philippines for that amount ?.

 

Because in America that is in addition to the social safety net. Example, 3 of my American buddies living here on that amount found themselves in medical emergencies.  All 3 had to fly back to the US to get free hospitalization. I don't know how they got free hospitalization but I am guessing it is because of the social safety net that exists in the US.

 

PS:  All 3 of them would boast about how cheap they can live in the Philippines but all 3 had to go home when the sh&t hit the fan.  One came back and died here.  One came back after his operation and is back to living here on his low budget (until the next medical emergency) and the third is still in the US as more extensive medical treatment is required.

 

My 3 friends are not the only ones in this predicament.  In Liloan I lived next door to a filipina and her filipino live in boyfriend.  They supported themselves with money sent from the US by her husband who had to go back for medical care.  He had no idea that she was living with her boyfriend and I don't know if he cared.

Edited June 27, 2013 by Dave Hounddriver

[jon1]

If you have a house or long term lease already paid for, $1230 is more than enough to get by on quite comfortably.

 

I have a 150sqm house, window unit aircons in every room (only used in my bedroom or living room for parties), US style water tank heater, US Standard washing machine and live under that easily.

 

Here is my breakout of expenses;

Electric 6000

Water 800

Internet/LL 3600 (if I had to tighten my belt on this it could be as low as 1600)

Cable 800

Diesel 5000

Gasul 700

Food 20000 (feeding 3 adults, 1 teen, and beer included in this)

Garbage 1200

Gardener 2000

 

Total 40,100p/mo

 

Add a vehicle registration/insurance 5000p, vehicle maintenance 10,000p, renter's insurance 10,000p and it still comes out 42183p/mo ($1004 @42p/$)

 

Now I still have some other toys that I entertain myself with while I still have income coming in. But those will most likely evaporate when I have to tighten my budget. 

 

The biggest thing is your startup costs/establishing your household. You could easily spend $10,000 on stuff for your residence, another $10,000 for a vehicle and $50-100,000 on the residence itself (home or long term lease purchase).

[MikeB]

US Social Security is intended to be a supplement to other pensions, 401k, annuities, savings, etc. It's only one part of the puzzle. If you are retiring solely on monthly SS income, with little or no savings, you are likely to run into problems somewhere down the line, wherever you are. For every person who says it's no problem living on that amount there are plenty more who couldn't and don't contribute to forums. 

[jon1]

I also doubt that anybody will get $1200/mo out of social security. Right now my social security statement is telling me that I will get $1500 out of it. I have friends that have retired and got only 1/3 of what the SSA was telling them that their benefit was worth. Where does the rest go? People that never paid into it, government borrowing from it, etc.. So if you are being told that your benefit is worth $1200/mo, plan on getting MAYBE $400.

 

I couldn't agree more with MikeB. SS is a supplement only and you can't count on it as your sole pension plan. My plan is to have a couple of rental properties by the time that I am fully retired, to supplement my military pension and MAYBE SS (if it's still around in 15 years).

[JJReyes]

Because in America that is in addition to the social safety net. Example, 3 of my American buddies living here on that amount found themselves in medical emergencies.  All 3 had to fly back to the US to get free hospitalization. I don't know how they got free hospitalization but I am guessing it is because of the social safety net that exists in the US.  

 

Like many Americans, I thought that Medicare would be paying my medical costs after turning 65. The assumption is because you have been paying into the government program all your life. Was I mistaken! Medicare A is hospitalization. If you are hospitalized, the surgery and stay are covered, but with an automatic co-pay of $1,360. If your illness exceeds a certain number of days, you also start co-paying for the hospital stay. Medicare B is to help pay for visits to your doctor. They automatically subtract nearly $105 from you Social Security benefits as monthly premiums. When I see my doctor, there is a co-pay of $31 per visit. 

 

My wife has Medicare A & B, plus C & D for an additional $143 a month. She still has a $5 co-pay when she visits her doctor. Medicare D is for prescription medication. There is also a $5 co-pay when she gets prescription medication. I pay the full amount for prescription medication.

 

The social safety net for low-income seniors is Medicaid. To qualify, you can't own any asset totaling more than $2,000 in value. Depending on the state, your Social Security benefits and pensions cannot exceed $900 a month. Because Medicaid programs are going bankrupt, state politicians are passing laws making the children ultimately responsible for their parents. In other words, the state can force sons and daughters to pay for their fathers and mothers. This is just getting started. Many Americans are not aware about the new state legislation.