Are You Rich?

[Clermont]

On 11/1/2018 at 4:33 AM, JJReyes said:

A - PHP1,857,000 (upper class)
B - PHP1,000,000 (upper middle class)
C - PHP603,000 (middle class)
D - PHP191,000 (lower middle class)
E - PHP62,000 (lower class)

Interesting subject: Our income is in excess of A but we live on C, I suppose it is how you want to change your lifestyle when you live there. We still like to cook for ourselves, occasionally going to a fast food restaurant, don't wear flashy cloths, nor jewelry, just live like we do back home. O yes we do trip about, but we don't stay in flashy hotels. C very do-able, just watch the centavos and the pesos will look after themselves. 

[JJReyes]

1 hour ago, Clermont said:

Interesting subject: Our income is in excess of A but we live on C, I suppose it is how you want to change your lifestyle when you live there. We still like to cook for ourselves, occasionally going to a fast food restaurant, don't wear flashy cloths, nor jewelry, just live like we do back home. O yes we do trip about, but we don't stay in flashy hotels. C very do-able, just watch the centavos and the pesos will look after themselves. 

My wife and I likewise maintain a low profile during this phase of life when we are constantly traveling.  Simple clothes, no jewelry, no wristwatch, no fancy suitcases.  In first world countries like Japan, we will eat anywhere including evening push carts selling noodle soup.  In the Philippines and similar countries, it is more expensive restaurant for sanitation and food safety reasons.  We made reservations at Dusit Thani Hotel in Makati after learning that the US military uses this hotel for their visiting personnel.  Reason is good hotel security.

I also read that middle class Filipinos (Class C earning between PHP 603,000 and PHP 1,000,000), on average, saving about PHP60,000 per year.  The percentage is much higher than American families.  

 

[Mike J]

On 11/2/2018 at 1:25 PM, graham59 said:

DISPOSABLE income is the only one that makes any sense, IMHO

I took care of the "earning" and my wife now takes care of the "disposing". 

[boyee]

I always found these average house hold income stats  to be very low here in the states.  I think it would be even harder to gauge in the PH.  Reason being in the states we have one or two income producing members of the house hold.  From my experience most Philippino homes are full of house hold members.  Some working, some not, but usually more than two bringing in money.  Since the money is pooled to cover food and rent it makes it more difficult to categorize middle to upper middle classes.  

[boyee]

Can anyone tell me what middle class or upper middle class means in the PH.  My Asawa has cousins who live in Manila.  They seem very middle class to me.  They own their own home.  Have a new car, and a couple of ya-ya's.  Every few years they come visit us here in the states and we visit them.  Now I have no idea what they make nor would I ever ask but it seems to me they MUST make over PH 1,857,000 per year.  That's simply what a new car cost now a days right?  

So my question is if they are living what we as westerners would consider a middle class life style by our standards does that mean by PH lifestyle they would have to be rich?   (My definition of middle class is owning a mortgage, one or two cars, kids go to a decent public school, maxing out 401k, able to eat out once or twice a week and take the family on vacation once or twice a year)  By that definition it seems to me in the Philippines that would be well above middle class standards.  Am I wrong?

 

[Dave Hounddriver]

23 minutes ago, boyee said:

Can anyone tell me what middle class or upper middle class means in the PH.

In my opinion, (somewhat jokingly), lower-middle-class Filipinos can afford a small house and a small car with monthly payments on each.  Regular middle-class Filipinos can afford to pay cash for the car but have payments on their house.  Upper-middle-class can buy house and car with cash. 

[JJReyes]

11 hours ago, boyee said:

Can anyone tell me what middle class or upper middle class means in the PH.  My Asawa has cousins who live in Manila.  They seem very middle class to me.  They own their own home.  Have a new car, and a couple of ya-ya's.  Every few years they come visit us here in the states and we visit them.  Now I have no idea what they make nor would I ever ask but it seems to me they MUST make over PH 1,857,000 per year.  That's simply what a new car cost now a days right?  

So my question is if they are living what we as westerners would consider a middle class life style by our standards does that mean by PH lifestyle they would have to be rich?   (My definition of middle class is owning a mortgage, one or two cars, kids go to a decent public school, maxing out 401k, able to eat out once or twice a week and take the family on vacation once or twice a year)  By that definition it seems to me in the Philippines that would be well above middle class standards.  Am I wrong?

Financing a home is not as common in the Philippines compared to the United States.  The reason is unavailability of mortgages from banks and financial institutions.  If the family owns a home, it was probably paid in cash.  The exception are the villages where the developer offers financing. Instead of appliances, you have maids.  My wife caused an uproar for purchasing a washing machine.  It meant to the staff that someone will have to go.  Your wife's cousins are US equivalent middle class, but probably upper middle or upper class in the Philippines.  The US Embassy requires proof of funding for any pleasure visa.  They also look as property ownership and other assets as an indication the applicants will return to the Philippines after the trip.

To answer your question, "Yes."  A middle class American would mean a rich person in the Philippines.

 

[fillipino_wannabe]

12 hours ago, boyee said:

Can anyone tell me what middle class or upper middle class means in the PH.  My Asawa has cousins who live in Manila.  They seem very middle class to me.  They own their own home.  Have a new car, and a couple of ya-ya's.  Every few years they come visit us here in the states and we visit them.  Now I have no idea what they make nor would I ever ask but it seems to me they MUST make over PH 1,857,000 per year.  That's simply what a new car cost now a days right?  

So my question is if they are living what we as westerners would consider a middle class life style by our standards does that mean by PH lifestyle they would have to be rich?   (My definition of middle class is owning a mortgage, one or two cars, kids go to a decent public school, maxing out 401k, able to eat out once or twice a week and take the family on vacation once or twice a year)  By that definition it seems to me in the Philippines that would be well above middle class standards.  Am I wrong?

 

They'd be rich here, only around 10% of households earn more than 50k pesos per month here, probably less than 1% earn over 150k pesos per month.
There really aren't many jobs paying over 150k pesos per month here, my wife's friend works for an American company, has 250 people under her and gets 100k per month.
Mostly only people with their own businesses can earn that much, maybe a few lawyers/bankers/doctors but not many of them.
Corrupt politicians/government jobs too ofcourse but their income isn't counted in the stats lol.

Edited November 4, 2018 by fillipino_wannabe

[Dave Hounddriver]

11 hours ago, JJReyes said:

If the family owns a home, it was probably paid in cash

I have to call you out on that one.  A very large number of entry-level homes are purchased with Pag-IBIG financing.  HUGE numbers of them are.  As I mentioned before, that is the difference between the middle, middle class and the upper middle class.

[hk blues]

4 minutes ago, Dave Hounddriver said:

I have to call you out on that one.  A very large number of entry-level homes are purchased with Pag-IBIG financing.  HUGE numbers of them are.  As I mentioned before, that is the difference between the middle, middle class and the upper middle class.

I agree with this - the community where I live has a much higher %age of mortgage holders than fully-owned based on the general comments I hear. The developer has tie-ins with the major banks here. Perhaps this is a relatively new innovation hence the recent increase in the numbers of sub-divisions popping up everywhere.