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I agree with everybody about cost of living in Manila and Cebu. I am one who can't live there because my pension is only US 649.00, almost like yours.
But you don't need to live the way you mentioned in your post. I live in Dipolog City for over two years already. Is only my wife and myself. We rent a very nice house with two bedrooms, two living rooms, two bathrooms and kitchen. Property is all fenced and the rent is only PHP 6.000.00. We have a multi-cab, cable TV, internet connection and we spent only PHP 15.000/20.000 per month. (Including my wife school).
Yes, we have a very simple life, but for a simple life we are very happy.
Every three months we go to Cebu for few days on vacation. We just came back from Manila and Cebu. We save every month about US 200.00, for vacation or emergency. I will love to live in Cebu but I know is not possible with my small pension but Philippines is more than Manila and Cebu.