The low cost of living in the Philippines is one of the major lures of the Philippines to people who are fed up with the current economic conditions in the Western world. People who have worked hard all their lives wake up one day at 55 and find out they don't have enough time left to ever put away enough money to live on comfortably in the Western world. Imagine what it is like when you wake up at 65 after 40 years of hard work to find out you have to live the rest of your life dependent on your children or the government for a subsistence lifestyle.

There is an answer. There is a place where you can live a life of dignity, with abundance on a minimum monthly income. That place is the magical and beautiful Philippines, where you live a good life on $1,000 monthly, or where you can "live like a king" on $2,000 monthly. There is a big variance in how much it takes depending on where you choose to reside in the Philippines - in the major city of Manila, in the mid size cities of Cebu and Davao, or in the rural areas of the country.

Whatever you budget, there is a beautiful place in the Philippines waiting to open its arms to you for retirement.

Below is a summary of the 5 Key Elements to consider.

1. Housing

How much you pay for rent will vary widely depending on whether you choose to reside in the big city of Manila or in the more rural areas. Also, the type of housing will have a significant impact. For example, there are one and two bedroom apartments and condominiums in Manila for as high as $1,000 monthly; yet, there are two bedroom town homes in Davao, Butuan, Tacloban and Dumaguete which average around $150 to $200 monthly. A detached home would of course be more, but a comfortable 3 bedroom home in the smaller cities can be had for $300 monthly. So I would consider a range of $200 to $1,000 monthly for housing.

2. Utilities

In this category, I put electricity, water, and telephone. Local telephone service is inexpensive, and more and more people have opted out of a local phone and simply go cellular (mobile) full time. Coming from Hawaii, I find electricity costs in the Philippines to be very comparable to there, but then Hawaii utility rates have notoriously been about double the US mainland rates. For all your appliances, TV, CD player, computer, and most importantly the ever present air conditioner, I would budget from $150 to $200 monthly.

3. Food (Groceries and Outside Eating)

Food is relatively inexpensive in the Philippines, especially if you choose to eat local food. The fish, vegetable, bakery products and fruits from the Philippines are great, so eating local food will be natural for you. However, time to time you may want imported Western branded items, and time to time you will want to dine out. There are so many great restaurants in the Philippines, it is hard to stay away from them. However, dining out is where you food budget will skyrocket.

Also, it depends on how many are in your household. Additionally, you will need to purchase plenty of bottled water or subscribe to home delivery from a reliable purified water company. All in all, depending on your dining out and imported brand tastes, you can plan on between $300 to $500 monthly for food.

4. Transportation

With this expense, you have to decide whether or not you want to include a driver. For the most part, a driver is not necessary for day to day activities, as taxis and jeepneys are plentiful and cheap. You can always hire a driver and his vehicle for day or weekend trips at distance. And of course, air fares are very reasonable, what with all the recent competition. You can of course buy a vehicle and be your own driver. I have done it both ways. I have had my own vehicle in Cebu City, drove myself, and then later added a driver. If you hire a driver, you will be responsible for all his daily meals, and the cost will be around $60 to $100 monthly. Overall, I would consider between $60 monthly to $200 monthly if you get your own car and hire a driver.

5. Maids

Lastly, and most importantly, you must consider maid cost. Maids are a fantastic feature of retirement living in the Philippines. They do all the jobs that you do not have the time for or have no desire to do. She will do the cleaning, laundry, cooking, run small jobs and pay bills. You can expect to pay around $50 to $60 per month for a maid, sometime more and sometimes less depending on the city location.

Of course, there is always the additional costs for medicines, dental care, entertainment and night life, and the amount of grand travel you wish to do. However, for the basic 5 Key Elements of cost of living, you can readily see that you can retire comfortably in the Philippines for a minimum of around $750. Of course, these costs can go as high as you wish. Living in a posh area in Manila or Cebu, you can easily spend $2,000 monthly. Still, these costs are about one-fourth of what you would need in the Western world to come even remotely close to the lifestyle it buys you in the Philippines.

Do you want to learn more about retirement in the Philippines? I have just completed my new book on "Retirement Living in the Philippines", which has a special section dedicated to this subject matter.

Download it at http://www.retirementlivinginthephilippines.com.

Will Irwin is a powerful entrepreneur, and business and life coach. He has started many online and offline businesses both in the USA and in the Philippines, residing in both Hawaii and the Philippines.