How do people live in the Philippines based on their income? I don't get it?

Question

I heard that average income is around 10k-15k PHP but that is pretty much the cost of an xbox 360 in US. I'm guessing foods are alot cheaper, but as far as luxuries, does that mean most people don't have much? I'm planning to visit there and I just happen to wonder, it's kinda weird how so much appliances costs around 10k PHP (I was looking through online)

Answer 1

Simple. Just like people in Indonesia, people in France, people in Sri Lanka, people in Venezuela live on their incomes. That explains why there are poor countries and wealthy ones. Poor countries like the Philippines and Sri Lanka, and wealthy countries like USA, France, Switzerland, and Singapore. But in any case, people HAVE TO live within their incomes. Even if they get loans to occasionally live beyond their incomes, they eventually pay for these loans so that their average income and expenditure for the year stays pretty much the same.

This is Economics. Prices of goods are determined by market forces, and market forces include external forces like the cost of crude oil in the world market. Thus, people who earn more, in dollar terms, pay as much as the Pinoys who on average earn a small fraction of the income in wealthier countries. People EVERYWHERE just have to COPE because these things are BEYOND them. It helps that some grow their own crops, or raise hogs, chicken or other cattle.

And just like ANYWHERE, there are wealthy people and poor people. The rich in India live like the majarajahs of old, while the poor live in shanties our poor people will find disgusting. Wealthy Filipinos live more comfortable lives than most people in other countries, yet our poor brethren hardly have a decent meal for the day.

How do they live? No, they don't "LIVE". They simply survive.

Add:

Filipinos are happy just surviving, and are made of sterner stuff. In a Happiness Index done amongst people of the world, Filipinos are happier than those in the USA, and ranks number 12 in the world list, topped only by rich European nations. Obviously, there is no longing for an xbox.

See the attached list, and wonder some more at why we are happy in spite of the meager incomes:

http://www.nationmaster.com/graph/lif_ha...

Answer 2

there is such thing as credit cards,layby and surplus or bargain items.

we rely on that, we pay on an installment basis particularly for those who have the means. you pay like P2,500 per month for twelve months.

as for those who really can't afford, then they opt for surplus,second hand or bargain items. we have plenty of the smuggled ones being sold all over the Metro.

some knows how to save.

most people live on a hand-to-mouth existence. it's really hard but people can survive. that's how good the Filipinos are.

leisure, for example, you no longer watch on the big screen but buy pirated dvd's and cd's for only P35.00 as compared to the P160 one-showing movie in the cinemas.

then for other like vacation,filipinos only do that like once or twice a year but not the very expensive ones. a small family gathering in a nearby beach is enough to make everyone happy as long as the family is complete.

food i've heard is becoming more and more expensive as teh prices of gas also increases dramatically every week. but as long as their is rice, noodles and a sauce, salt or some viand then people could still survive.

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really rough..but that's how we deal with life. for those earning more than P25k a month,most probably they could buy a TV in cash. but nowadays, i doubt it. with the other city sevices to be paid, still its hard.

cars,houses and other expensive things are also on loan. some are lucky to have relatives abroad to help them.

Answer 3

Though it may not seem like much to you mate. Filipino people are very hard and resolute. They are pretty tough and get by. You will see when you go there that they are very nice people but they are also very hard working and can sacrifice quiet alot in their lives in order to just survive. It's drilled into them when they are being raised and they don't waste anything like the many people in foreign lands do.  

Answer 4

Some people in the Philippines dont have the need for luxurious things. As long as they can eat 3x a day, their families are intact and they can get load for their cellphones hehe , they are happy. I dont understand people in the US. When they see people living in huts or getting water from the well they just assumed these people are poor but sometimes they are not. They are just not exposed to other world and they dont have the intention, too. They have what they need family, food, shelter and clothing and they dont long for more. They dont know there is an xbox. All they know is cockfighting, fishing, drinking w their friends, play basketball on the side of the street and hunting are fun then thats all it matters to them. These people are blessed because they are not greedy like people who grew up in the US. THey can never be satisfied of what they have, they always want more and more. Because they want more and more thats how mostly they get into debts. I was in this island called camiguin and I cant believe how people live there so simple. They dont have the urge to buy xbox or any expensive gadgets. They get so happy when you give them a chocolate bar but yet i havent seen any beggars around the island. Sometimes they are not poor, its just the way they live. Simple but yet they're happy and they dont worry about late fees (credit cards), parking tickets, outfits, credit check, etc.

But people in the city are totally different from people in the provinces. If your a city person then, you have too much needs and cant live without material things.

Answer 5

Ever heard of credit cards?  Everything is on credit so that each payday, you only get to hold your hard-earned money for one day only.  The next day it's all gone.  People here don't live for their paychecks but for the "utang" or credit, be it from the smallest sari-sari store or "carenderia" in one's neighborhood to credit card companies.

Answer 6

It's a different world here.  Compare it to America and you will miss the beauty these simple living people have to offer.

We have poverty at home too.  We just make sure to drive around it without looking.  You can't do that here.  You will find that generally these folks are happy and don't appreciate your pity.

They will take your money though.  A lot of the kids you see begging on the streets are taking the money you give into the shops to give to their bosses as it's just a job.  Some are homeless orphans looking for a meal.  Hard to tell.  Remember that street sales are income producing jobs and are sought after here.  Doesn't mean charity.

Don't be anyone's mark but then don't judge by your own standards either.  Just have fun and then go home and tell everyone they should come here for a visit and you will help more than throwing money at them.