money problems

Euro coins and billsWhen you are living in Europe and are used to Euro’s you will not experience the same problems as expats do in lots of countries.
With the present low exchange rates due to the financial problems in Europe many expats (living outside Europe) who are depending on Euro’s, have to suffer a lower income of about 15 to 20% compared to a year ago.
My family back in Holland doesn’t have to worry yet that we come home to live on their expenses. We still are able to manage !

The Philippine “Bangko Sentral ng Pilipinas” exchange rate of today May 20, 2010 for the Euro is 56.457. About a year ago it was still somewhere in the higher 60′s and around 70 peso per euro. In the chart shown here you can see the fluctuation over the last year.

It is said that the almost bankruptcy of Greece is the main reason for this low rate of the Euro. More countries are in a dangerous position like Portugal, Italy and Ireland. I am not an economist so I cannot judge it. Fact is that it is a bad position for those people. Together with the Euro ( € ), other European currencies like the English £ , are also suffering because the currencies of all European Union countries have a fixed exchange rate among each other.
January 1, 1999, the leaders of the European Union countries decided that one single currency would be established in the participating countries. Civilians (and many organisations) in almost all countries didn’t like this decision and have protested, and so did many opposition parties in the parlements. Yet (under pressure of the German and France gouvernments) we Europeans were forced to accept the Euro as our new money. And January 2002 we had the first coins in our purse. Now there is no way to go back again.

In a previous post on this website (check HERE) I wrote about the money what is needed to live as an expat in the Philippines. I guess that for the moment I should change the amount mentioned in that post. I wrote that an amount of 600 to 800 euro would do (depending on the lifestyle one lives and needs one has). For now I should say that 800 to 1000 euros are monthly needed to live that same life.

If there are people wanting to know how much they need to live a decent life in the Philippines I would like to advise: 1000 Euro monthly would do. If you have more: the better. And take care for medical insurance because hospitals and medical treatment is a little expensive here. Although not as expensive as in the USA or Europe. If you have some savings, try not to touch it unless it is badly needed.

It would be nice to have a few of these if they were real !!!

Leave a Reply or Comment

  1. Hey if things don’t improve in the not too distant future they might be real. :)

    Foreign exchange is always a rollercoster ride. The dollar does the same thing. That is why it is a good idea if you plan to resettle if you can have an income at least a little higher than your projected budget to cover variances in rates and unexpected expenses.

    • Tom,
      I posted this to warn others to have enough funds to survive as an expat here.
      Thanks for your comment.

      • You’ll need at least $10,000.00 (USD) for medical/hospitalization emergencies. Medical insurance in Europe and the U.S. is not honored in the hospitals and pharmacies. Payments for medical supplies and medicines must be paid in cash. Hospitals demand payment in cash before rendering any services. If you have a family with you make sure that you have cash funds of another $10,000.00 for the dreaded funeral expenses.

        • Depending on what hospital one goes, some accept foreign insurance company cards. But it is wise to bring some cash or credit/debit card with you. Those cards are widely accepted in hospitals. Some farmacies also accept credit cards. But it is good to have some cash a side for unexpected things.

  2. This is my first visit to your site. Forgive me if my question has been covered already. Was it a difficult transition for you? Were you able to bring substantial savings such that you are able to afford a good life in the Philippines? Have you encouraged family and friends to follow you?

    • Hi JJ,
      I wrote a few times about that. I have a small pension and some savings. My wife and I do live comfortably here.
      Not luxurious, but a simple life.