Thailand is probably cheaper than your home country. The problem is that it changes people’s attitudes and they no longer realize the true value of money. Thailand certainly isn’t as cheap as it was five years ago when I came here, I am spending more for so many products and services.
The problem is many expats are naive in their views on the true value of items and services. It’s got to the point that so many people here actually shame other expats for spending too much for certain things. It definitely is a race to the bottom for some here who think that everything should be done on the cheap (or at least cheaper than you did it!)
War on Spending
In the end if you want to spend as little as possible then that is your call but what I don’t like is how a lot of expats will come out and deride people actually spending their money on things they want.
I wrote an article about having a maid in Bangkok and it seemed to get a lot of people’s backs up! I spend 2,250 baht a month for a cleaner and I got a fair few comments and emails from people saying how I was wasting my money. I mean that is £50 / $65 a month to get someone to come in do all my cleaning, washing, ironing and sorting out my place. How on earth that is a waste of money I am not sure. One guy said I could have an extra 30,000 baht in my bank every year if I didn’t have a cleaner but the issue is that service is worth the money to me and I can afford it, so why shouldn’t I use it? If I wanted an extra 30k then I could cut back on the beers, play less golf or work more hours but I don’t want to do any of those things. The same guy said he would never spend money on a maid because his partner does the cleaning. In the end I’m happy my partner can put her feet up and relax as we get someone in to do the jobs we don’t like. Again however you want to live no problems, no need to jump at me for spending money how I want to.
I’ve actually bought two condos here in Thailand. If you buy a property then you suddenly get a lot of doomsday expats come out and tell you what a mistake you’ve made! I took a fair amount of flack for buying the condos from anonymous online characters saying I had made a mistake, paid too much, would never get my money back, would regret my decision etc etc… In the end I actually sold both properties and broke even on both. Sure, not a great success story but in the end it was my choice and I’m not in “financial meltdown” as some had predicted. If someone wants to buy a property let them do it. If that property is in a Thai partner’s name then so be it, that is their choice. Sure there are stories of things going wrong when that happens but I know of many where everything is fine.
Even when you rent a property you can get a lot of negative responses. At 13,000 baht a month I guess my rent is pretty standard for a lot of people in Thailand. The problem comes when you meet people in your building, or others nearby, that tell you they have a cheaper, better room. Honestly if someone told me they had the same room as mine for 1,000 baht a month less I couldn’t care. Also if you feel the need to tell me that 13,000 baht is expensive then I don’t care either. If you spend 25,000 baht on a condo then you won’t here any negatives from me about that as I’m sure it makes you happy and is in your budget.
I was speaking to someone else about this the other day and he told me that he booked a hotel for around 2,500 baht and others were quick to tell him about cheaper options nearby. In the end he got the hotel he wanted at a price he wanted, why is there the need to try shame someone for spending their own money? He probably could have got a 6,000 baht hotel and he probably saw a 1,000 baht option but made the choice he wanted. Telling people they “wasted” money is a bit stupid when they have got what they wanted in the first place at a price they are happy with.
A Race to the Bottom
Most articles about the cost of living in Thailand focus on how cheap it can be here. That is a big problem as it creates an atmosphere of “let’s try and doing everything for as little as possible”. It’s a race to the bottom for sure for a lot of people here.
Whilst living within your means is important I also feel that you should treat yourself sometimes and not feel shamed by others for doing so. I write a monthly spending article for myself here and get a lot of emails from people telling me other sites say it is much cheaper to live in Thailand than I do. People ask why I spend so much on a condo, eat out most days or take taxis to and from work. I reply and tell them that whilst it is possible to live here on $750 a month or $1,500 I choose to live my life a different way and don’t cut corners on everything to live as cheaply as possible. In the end if I have the life I want, do the things I like and spend twice as much as you why should that matter to you? In the same way if you are happy living here off $750 a month then no worries, good for you.
It is important to note that saving money is a good thing and if you can get a deal then that is great too. The problem is too many expats apply this principal to everything they do here. People complain the food is more expensive when they are visiting tourist areas or they have to pay more than locals to go into some attractions. People miss out on great experiences over a few hundred baht which they are more than capable of paying.
Lowest Price Competition
A lot of the time money issues in Thailand come down to a competition. This could be seeing who makes the most money, who can find the cheapest food or making a 200 baht beer budget last the longest on a night out. I rarely see comments online where someone says “well done you got a good deal” or “Sounds great, hope you enjoy what you bought”. Normally it is something like “I got mine for less” or “Why did you spend that much?”
I read a thread on Twitter a few months back where someone talked about paying their maid 1,000 baht per visit. The replies were probably 75% negative and mostly saying that it was too much and all stating what they pay (obviously lower prices). In the end it makes people look like they want a prize for paying the least for something.
It can even transcend work or within groups of friends. At my old job 5 colleagues all rented in the same condo and when it turned out one of them was paying an extra 1,000 baht a month they all mocked him, it’s such strange behavior.
Is it all About Salary?
In some situations salary plays a part in people’s attitude towards other expats spending money. In other ways people get stuck in the mindset that Thailand is cheap. A lot of the time people complain about items which are less than 1,000 baht. If a craft beer is 250 baht then surely you can treat yourself to it once a month without it destroying your monthly salary? If you are spending two nights in a hotel, 2,500 baht a night must be reasonable for most expats here if it is for a treat or special occasion.
If you’ve been here for years then yes prices will have gone up. There will be products available here now which weren’t in the past and it’s possible that they are expensive. The problem is that although people do have the money they know that product is cheaper back home or was much less here years ago and so just say it is stupid to buy it here. The other issue is perhaps they have been stuck at the same salary throughout their time in Thailand.
Live and Let Live
I think expats here in Thailand should take a more sensible approach when it comes to spending habits. It is unreasonable these days to say that Thailand is one of the cheapest countries in the world to live in. Sure there are bargains to be had and compared to most western countries it is cheaper but then there are some high expenses too.
In the end people move to Thailand for a number of reasons. There are those here on mega salaries and others scraping by. If you want to spend a little or a lot then it is your call. It should work both ways and there is no need to mock people for spending money or for saving it when they want. I doubt the name calling and competition will stop but hopefully people will be more open minded to spending habits.
Great article! Expats are often blind to the race to the bottom when they insist on the absolute cheapest prices.
My condo building used to have two laundry shops right beside each other. The owner of one shop raised prices so she could keep her Burmese staff when the government cracked down on migrant labor. She now pays each of her four employees15,000B per month and also gives them free accommodation, which is a lot more than what many university graduates get. As a comparison, maids in my building only get 9,000B per month.
The other shop saw an opportunity to lower prices and steal customers, but it went out of business a few months later. It turns out that shop started sending laundry out to a factory to save money instead of doing it in-house. Clothes often went missing and regularly took almost a week to get back. In the end, they weren’t even charging enough to cover their expenses, and who knows how much those factory workers made.
I’d gladly pay a bit more for good service and to provide a livable wage for the workers.
Really interesting story. Just goes to show service and quality is more important than saving a few baht
Great opinion piece. I totally agree with your outlook on spending for rent and maid service (I pay slightly more than you, but not a lot more). I don’t drink, so any splurges are on Western food and restaurants. In Bangkok, you have to down shift as salaries are poor by Western standards, but you can enjoy a better quality of life within your budget. One last thing, please darken your blog font just a little. The gray font is hard to read (the comments are much easier, so you can use that as a guide).
Thanks Mark – just changed the blog today will update the colors.
I actually make around the same money here in Bangkok as I did in London 5 years ago. I feel some parts of life are much better (accommodation and eating out) whereas others are more difficult (saving for holidays and certain hobbies like golf). This all comes down to different values on items. If my current condo was in London I would probably pay at least double the rent for example.
In the end I am happy with things here and spend when I want and save at other times.
I also have similar experiences to you. I rent a condo in a great area for 23,000 a month, but often get people telling me how I could save money by renting a smaller condo or one further out of the city. But the fact is that I like the location, have everything I need within walking distance and like a bit of space. I don’t want to save money by living in a tiny condo or moving to an area with fewer restaurants, cafes, etc.
But I think a lot of the negativity comes from people that don’t have much money to spend. If someone can only afford a 7,000 condo and they see someone else spending 20,000, then it likely makes them feel bad about themselves. So the obvious way to make themselves feel better is to make up a story that the other person is wasting money. The other way to look at it is to admit that they’re not doing as well as others, and that is something that most people find hard to admit even to themselves.
I’d better not mention how much we pay our maid for cleaning, as I’ll get a ton of flack. We pay more than the going rate because it helps her out and we can afford it. It’s good to help others.
Totally understand your points Mike. When I was on 34k when I first arrived I thought taxis were a waste of money and would have never dreamed of paying someone to clean my place. Unfortunately, some people actually make a decent amount but still have these feelings.
Most people complain because they dont earn much. People reading these blogs often earn around 30-60k (I assume) and refuse to believe people earn more than this. If you dont like the comments perhaps you should find friends/bloggers with higher salaries
Humans are not as rational as they believe they are. I’ve seen an expat who admittedly paid over 20x the regular price for a SETV then scoff at the idea of paying 200 baht more for a phone case that he even admitted was high quality.
Ramit Sethi talk about living a rich life and buying back your time. A lot of your article resonates with this. You cut back on stuff you dont care about, but also spend money on the stuff you love or will benefit you exponentially.
For example, when you pay for a maid, you are also freeing up your time to do other things with your book, or business, or work. We only have 24 hrs in a day, so it is wise to consider that vs ONLY the cheapest way.
Agree with you Jon best to use your time how you want
You say that you don’t like people criticizing what you spend your money on, then why are you telling people?
Your finances should be your private business, and if you feel the need to tell people then don’t complain if you don’t like what they have to say.
I agree with you that a maid is worth the money, but you must also understand that many people think it is a waste of money. Most of my family would think a maid is not worth the money.
You say that unfortunately people making a decent amount don’t see things the same way as you, so hardly a very open minded comment by yourself.
I think people should be open-minded about money. A lot of people live here on 1000 USD a month others on much more. It’s different way of living. No problems if you live on 1000 USD.
I write my cost of living as it helps me and others enjoy reading it.
In the end people can spend money on whatever they want but I just don’t like that people take offense to others buying things they like and enjoy.
Hi Rich,
Really enjoy your contributions. Please keep them coming
In fact I have met Singaporean (my native) expats here also who come and work on local packages even in senior positions. They may get a housing or transport allowance but that’s about it.
Pure expatriate packages are only reserved for high management positions like CEOs or CFOs (example)
Agree with your sentiments, its your life. Live it, or leave it 🙂
Best,
Thanks for the feedback!
Richard, I bet when you get home after a hard session in the classroom and your apartment gleams like a new pin and all those freshly washed and ironed shirts are hanging up in the wardrobe, 2,250 baht would sound cheap at twice the price! Money very well spent.