Why You Shouldn’t Live on a Shoestring in Thailand

 

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transplanting-rice-983760_640I’ve seen a lot of articles recently talking about how you can live very cheaply in Thailand. This is certainly true, the cost of living in Thailand is lower than in most people’s home countries.

However, some of these articles have taken things too far in my opinion. Brooke from ModernDayBlog wrote Living on a Thai Budget about how $1,200 lasted her 9 weeks and Mark Wiens at Migrationology wrote How To Live Like a VIP in Bangkok for $285.06 Per Month . Both of these articles provide an insight into how it is possible to live on those budgets. Fair play to them for making those budgets work but in reality do you really want to be counting every baht and making judgement calls about whether you should “treat” yourself to a 15 baht ice tea?

The aim of the article is to point out the problems you face when trying to live as cheaply as possible in Thailand. The main focus here is on Western people moving to Thailand. Maybe you are thinking of retiring here and have limited funds, maybe you have decided to get married to a Thai citizen and want to live here together or perhaps you saw an option to work here on a  low salary and are curious if it will be enough.

How Much is a Shoestring Budget in Thailand?

live on a shoestring in ThailandSo Firstly lets see what I think is a shoestring budget. Many people will have different opinions but I would say it is when your monthly budget for all spending is under 25,000 Baht ($700 , £485 , €640). This is 833 Baht per day based on a 30 day month. In fact I would say that anything below 30-35,000 Baht  will put a lot of strain on your spend and may soon become my new shoestring level.

You may disagree and think this is still a lot of money for Thailand but based on most Western people living and working here it is a shoestring budget in my opinion. Thailand is more expensive than even a year ago. Food, clothing and entertainment prices have all risen. The days of 25 baht street food meals and 60 baht beers in restaurants have long gone.

The problems this article focuses on are when you make money decisions which in your home country wouldn’t even be second thoughts. Like for example paying $4 for a 10 minute taxi ride or 50 cents for a coffee. Also we will see some of the constraints you will have to live under and experiences you miss out on when your main focus is just on spending a very limited amount of money.

My 32,000 Baht a Month Experience

When I first moved to Thailand in 2013 I lived off 32,000 Baht a month which is slightly higher than the shoestring level I have set for this article.

I had lots of money problems and had to make decisions to cut back on parts of my life which I will share with you in each section. Bear in mind that 3 years ago prices were also cheaper than in 2016 for keys items like food and transport.

I didn’t realize I would have to cut back so much and as such wanted to share my experience. I arrived having earned around £2,250 (111,000 Baht) a month in the UK in a sales job and managed to save around £5,000 before I came to Thailand to help me through my first few months without a paycheck.

When I got my first job I imagined I would be able to live off the salary and leave my savings alone but had no such luck. Every month I took around 5-10,000 Baht to cover things like entertainment and travel which cost me well over 15,000 Baht a month. I was living the holiday lifestyle and basing my spending decisions on prices converted back to my home country’s currency. 200 Baht for a beer in an English bar is only £3.80 , a bit cheaper than London prices so I wasn’t initially concerned about paying that price.  After 3 months I realized that I needed a better paying job, a budget planner and to start learning the Thai value of items.

Budgeting

project-875699_640All of us have to make decisions about what we can and can’t afford to buy. It makes common sense to do this and everyone should be aware of their finances. It’s not as if I could buy everything I wanted in the UK but when I arrived in Thailand on 32,000 baht a month I had to be much more frugal with my money.

The main budget constraint I had was in regards to travel. I would travel a lot and was keen to experience everything Thailand offered. I was also fond of having a few too many beers and always going into the city centre on my days off.

Nowadays I earn over double my initial Thai salary but I still budget and make an effort to save a reasonable amount.

So lets look at some of the key areas you will need to budget for when you move here and how it makes it difficult to live on a shoestring in Thailand.

Accommodation

The first thought most people have when they move somewhere is where they are going to live. There are many different accommodation options in Thailand and depending on your needs you could be looking at a single studio room all the way through to a huge house for a family. How much is the cheapest accommodation in Thailand? About 2,000 Baht (c. $55) a month. This is cheap living – but it will also be horrific.

You know most accommodation options in Bangkok, Pattaya, Chiang Mai and other tourist regions under 5,000 Baht ($140) a month aren’t pretty. Have a look on DDproperty.com and see for yourself. There might be the odd “hidden gem” but in reality you will be looking at spending upwards of 8,000 Baht in Bangkok to even get something half decent. For a good 1 bedroom in Condo you should expect to pay 12,000 Baht +. This is two thirds of your $500 monthly budget or one third of a $1,000 budget.

Studios – So you might be wandering what is wrong with renting a small studio apartment. You might have a suitcase and a few belongings – you don’t think you need much space. Well I thought the same and spent 4 months in a 3,500 Baht studio apartment outside Bangkok and it was like a jail cell. Staring at the same 4 walls was depressing. Your bed is the place you sleep, the place you sit, the place you eat food and the place you invite your friends to sit on when they visit. Also many apartment blocks with very cheap rents attract a bad crowd. Late night parties and thin walls don’t mix well. You often find that many Thai people don’t live alone but often share rooms with their friends which increases the volume even more.

You will most likely have a Thai style bathroom and many places don’t have water heaters. Walking through puddles every time you go in the bathroom isn’t fun and a cold shower at 7am before you go to work does wake you up but isn’t a pleasant experience!

The other major drawback of a studio is the lack of a kitchen. Sure you will be able to buy a microwave and an electric grill but its not the same as having a functional kitchen to prepare meals. Also your room will smell like whatever you have been cooking for hours and some places ban cooking inside so you will be limited to your balcony for preparing meals.

The studio room is the most common choice for those who want to live on a shoestring in Thailand but be prepared for a potentially miserable experience in your studio cage.

Condos – Condos offer a more comfortable standard of living but if you want to live on a shoestring in Thailand then you will be looking at the low end of the market. 10km or so outside of central Bangkok you can get a small 33sq metre condo for around 7,000 Baht – sometimes they even have a separate living room and mini kitchen.

Bangkok Condo7,000 Baht is doable on a 25,000 Baht budget but as condos tend to be privately owned you normally have to pay 2 months deposit and first months rent when moving in compared with normally just 1 month deposit for a studio apartment. So the 21,000 Baht needed before you move in is almost a month of your shoestring budget.

I lived in a 7,500 Baht condo just outside Bangkok which had a separate living room, kitchen and a Western style bathroom for 3 months. It wasn’t much bigger than a studio but having different rooms made a big difference.

I also lived in a 13,000 Baht 45sq metre condo in Ladprao which is towards the end of the MRT line in Bangkok. 13,000 would be out of your budget if you are planning to live on under 35,000 Baht in my opinion. If you wanted to be in the centre of the city then a similar sized condo would be closer to 20,000 Baht. I would now say that a condo with over 45sq metres would be my minimum requirement when looking for an acceptable place to live.

Houses – So the other option is to rent a house. There is a lack of affordable housing in central Bangkok so you will probably be looking at the outskirts of the city. Prices start at around 7,000 for an unfurnished house or 10,000 for a basic furnished house. So these might be in your price range but then you will be hit with higher utility bills than living in a condo as you have more space to cool with your A/C or fan.

Many cheaper Thai housing estates aren’t built to the best quality with walls being thin and houses built closely together. This means you might not a have a quiet and peaceful experience. Of course the situation is different in every estate and you could end up with a decent place to live if you are lucky.

1024px-House_party_in_Denver_ColoradoYou can of course look at a house share on Craigslist and I know a few people who founds rooms in houses this way in central Bangkok for under 8,000 Baht. Bear in mind though that these houses have been more like student houses so it may not be an ideal situation for you.

In other tourist destinations housing prices are similar and it seems 10,000 Baht for a simply furnished house outside of the central tourist area is a reasonable ballpark figure to work from. Your other option is to look at living outside the city or in remote locations….

Living Outside the Cities – How about living in the smaller towns and cities or out in the sticks. Sure its cheaper but there are also fewer choices. You can rent a small house for around 5,000 THB but it will be unfurnished so again you are looking at an apartment if you want to stick to your shoestring budget and have furniture included.

Next you need to think about the quality of life you will have. Maybe you think you want the quiet life but in the end you may find yourself too secluded and feeling the need to visit nearby cities or towns to get a Western fix. I lived in Lam Lukka which is only around 20km from Bangkok but found myself going into the city almost every weekend to socialise and get away from the monotony of countryside life.  I ended up paying for hotels and taxis which added a lot to my cost of living. In the end it would have worked out cheaper to stay in the city and not pay for transport and hotels which is something you should think about if you want to save a few Baht by moving out of the city.

Utility Bills

accounting-761599_640When you have your accommodation sorted you need to think about the cost of your utility bills. Water, electricity and internet are not included in your rent 99% of the time. You also need to think about your phone bills too as most people nowadays can’t live without internet and calls.

Electricity – Many cheaper apartments require you to pay your utility bills directly to the apartment. This means you are likely to be paying a high premium to the owners who then pay the much lower government rates. To give you an example I was paying 1,800 Baht a month in electric for a 28sq metre apartment directly to the building owners and now I have a 64sq metre condo and I pay around 900 Baht a month to the electric company.

After seeing how high the bill was in my first month I found myself rationing the air conditioning to save a few Baht. I would sit sweating even with a fan on in the last few days of the month as I knew I didn’t have much money left. Its not the way to live.

Water –  My water bill in Thailand is always super low – never above 250 Baht a month. In apartments you will get charged about the same rate as condos and houses – usually 18 baht per unit.

So the good news if you are on a budget is you can have a nice long shower to cool off and not worry about the cost!

Internet – The internet is  a bit of a con in many apartments – paying 300 – 600 Baht a month for shared internet is the norm. Between 4-9pm most nights you are lucky if you can stream a video as everyone in the building tries to log on.

When I first came to Thailand and lived in a 3,200 Baht studio my internet cost 399 a month and I couldn’t even have a Skype video chat with my friends as the connection was so bad. I also couldn’t install a private line as the apartment refused to allow it. 100 rooms each paying 399 a month is a cracking deal for an apartment who probably pays less than 25% of that revenue providing the service.

Now I have private internet with True which costs 799 a month and works perfectly 99% of the time. The convenience is worth the higher price I pay and if you live in a house or condo I think this will be something you buy straight away. On 32,000 Baht a month I would have to think twice about paying 800 baht internet and maybe just try to make do with my phones internet or shared internet.

Phone Bills –  I have used DTAC since I arrived in Thailand and have always found the service acceptable. The big 3 phone networks in Thailand, DTAC, TRUE and AIS, all offer similar packages at almost identical prices.

I pay 299 a month and get 2GB internet data and 100 minutes calls. After a while you will see everyone communicates by Line (an online messenger similar to WhatsApp) so you really don’t need many voice call minutes in your package.

Thailand is well served by free Wifi in many tourist areas so I guess you could survive without a data package if you live in a tourist area and can jump on the free Wifi. For me though if you are stressing about 300 Baht on a phone package then you are in budget trouble.


laundry-413688_640Laundry –
 Although clothes are cheap in Thailand you will need to eventually wash your own. Most apartments have a laundry room with coin operated machines costing between 20 -40 baht a load. You need to buy your own detergent and softener on top of this. You then need to dry these off on your balcony. I guess my monthly cost was around 350 Baht a month which isn’t too unreasonable.

But now I have the disposable income to get my dirty clothes picked up from my condo and washed, dried, ironed and delivered back once a week. This costs me around 200 Baht a week and saves me a lot of time and effort (and I’m crap at ironing anyway…) This service is not a necessity but I now couldn’t imagine doing my own laundry again when I compare it to the convenience of not worrying about it for what I see as a low cost. When you are living on a budget you will be trying to cut corners to save so you’ll be washing and  ironing your own shirts.

Health Care

Self Insure – Medicine is cheap in Thailand. If you have a cold or need to buy plasters for a cut then you will be spending under 20 Baht each time you visit the pharmacy. A trip to your local clinic to get a blood test and a document to support your visa is only 300 baht – it is cheap.

You probably think you can keep spending to a minimum on health care and just pay as you go. Many people do this, especially if they don’t work here and aren’t given health insurance. Paracetamol is 12 Baht a pack and throat lozenges 35 Baht – it wont break the bank on your low budget.

However, imagine you need treatment for a serious disease or injury, what will you do? Potentially the cost will run into the thousands of dollars.

Let me tell you about a teacher at a school I worked at. She got really bad food poisoning and had to go to the hospital. She decided to check into Bangkok Hospital as she didn’t fancy the look of the government hospital we tried first and had to stay for 4 days. The bill for medicine, the room and doctors check ups – 95,000 Baht. This is extreme and I’m sure a government hospital would have been much cheaper but it shows how expensive it can be for a relatively common health issue in Thailand.

Our agency insurance didn’t cover the cost of her treatment and she had to speak to her parents for a loan followed by a flight home from Thailand. You should get the treatments covered by your work health insurance policy in writing.

So you can see the potential dangers of not having adequate insurance and how much it could cost you so maybe its time to consider health insurance but it comes at a high price…


disease-292571_640Health Insurance –
The medical system is very different to that in the UK and many European countries. You have to pay for many treatments and free / cheap treatment is limited to lower income Thai citizens or certain employees. Therefore many people get private medical insurance to cover themselves in case of an emergency.  Karsten from karstenaichholz.com wrote a fantastically detailed article on health care and insurance in Thailand – Thai Health Insurance: Here’s What You Need to Know as an Expat . It certainly made me think about improving on the healthcare I get through my company in Thailand.

If you officially work in Thailand then you are usually entitled to social security which covers the cost of medicine and treatment (although often after long waiting lists and using inferior medicines at a limited number of hospitals). Breaking your wrist is not a big problem for a government hospital to treat but imagine if the worst happens and you are involved in a car accident. I would want to know I was protected and going to receive the best possible treatment. Health insurance costs from 2,000 Baht a month (around $55) for a basic plan which would be 10% of your shoestring budget of $500 a month. This may not even cover you for many situations and diseases.

Do you really want to be playing roulette with your health? Maybe you never need to use health insurance or you consider it a waste of money. If you are retiring here  I feel it is a necessity but living on a shoestring it may be a necessity you have to cut to out of your spending.

Food

Street Food – Street food is cheap; you can get a meal for 35 – 50 Baht so in theory you are thinking 110 – 150 Baht a day for breakfast, lunch and dinner is possible. On paper it is, but in reality I think anyone would struggle to keep this going for a long period.

Firstly you will be limited to mainly Thai or simple Asian dishes which, although delicious, will become boring after some time.

11413815505_f1cd449830_zSecondly you will be eating at street-side stalls or having to take food back to your room to eat – you won’t be enjoying good restaurants.  Eating by the side of the road seems like an adventure and provides a chance for you to be like the locals but it sucks if you’re doing it in a city or large town. When a bus goes past the scene is like a Mexican wave with people rushing to cover their faces to protect themselves from the exhaust fumes. However, I do admit that eating street food in a quiet village or by a river can be a very good experience. Even in Bangkok you can find a quiet soi and enjoy some local food but in the long run it’s not great. Wait until the rainy season, do you want to be sitting outside under an umbrella huddled up over a plate of fried rice?

Thirdly, I’m not really sure of the health effects of street food. Some is healthy for sure but some is unhealthy or contains lots of sugar and other harmful ingredients. I’ve never been ill after cooking my own food but for sure I have been after eating in cheap restaurants and at street stalls here in Thailand. I’m sure many people have the same view so if you’re budget limits you to street food then you will likely have many adverse health side effects.

Foreign Food – So after a few months living on a shoestring budget you will want food from your country, or at least something not Thai. This leaves you with a few options. Most people head to a mall to eat at one of the foreign restaurants or fast food joints. A standard meal at MacDonalds is 155 Baht – the same amount as 3 street food meals.

Then we have the foreign pubs and bars which serve your home favorites. I like a trip to The Sportsman in Bangkok every so often for a few European beers and English food. A pie and chips or baguette normally costs around 250 – 350 Baht which is expensive compared to Thai food. It means you might have to make your dining choices based on price rather than desire when you live on a shoestring in Thailand.


beef-17040_640Cooking At Home –
The other option is cooking it yourself in your place (if you have cooking facilities). This is cheaper than going to a restaurant as you can buy ingredients from the supermarket at a reasonable cost. A portion of spaghetti bolognese with meat costs around 80 baht to make and a jacket potato with filling can be done for around 50 – 70 baht.  I cooked a full English breakfast last week with real ingredients and it costs around 250 baht per person – not cheap but something I love every so often.

When you live on a shoestring in Thailand you will have to consider if you should invest in cooking utensils and a grill or if it is not worth the cost. After all you can stick to the street food and the odd meal out.

Transport

Thailand isn’t made for walking. From  the temperature to the shocking conditions of the pavements there are a number of obstacles that prevent you from walking as much as you did in your home country. This means you will be relying on other methods of transport if you have plans to leave your street.

Cars – Thinking of buying or renting a car? Forget it on your shoestring budget – actually I think you will be looking at a budget of 50,000 Baht before you could consider a car as a transport option – monthly repayments are usually 7,000 Baht + a month.

Scooters_Bangkok_NanaMotorbikes – Renting or buying a motorbike is possible. Your monthly payment for renting could start from around 2,000 and maybe around double that if you are hire purchasing your bike. The good news is that fuel prices have been reduced recently and insurance is cheap (my colleague pays around 1,700 a year for bike insurance). The bad news is that you might have to pay a couple hundred baht a month in fines to police for not having a proper licence. The even worse news is that every bike owner I have  known in Thailand has had an accident at some point. This has meant anything from a short trip to hospital for cuts and bruises to 1 week in hospital with a broken arm and leg – that health insurance looks like a good deal now.

Taxis –  Bangkok in particular is home to a huge army of taxis. Any time of the day or night you can hail a cab within a few minutes and be on your way to you destination. With a starting fare of 35 Baht and a minimal increase every few hundred metres the cost is very low compared to any Western city.

On a recent trip to Chiang Rai I also hailed a taxi and had an argument with the driver as the meter is only used to work out the distance for which you then pay 10 Baht per KM and not the actual meter price which is much lower. I also know that taxis in Phuket, Samui and Pattaya use similar tactics or just refuse to use the meter.

Imagine you need to take a taxi every day to go to work from your out of town location or just need to get to everyday places like the supermarket then you could be spending over 200 Baht a day just on transport. Over a month this could be 5,000 Baht – 20% of your shoestring budget. This means you might find yourself waiting outside in the sun, rain and pollution for one of Bangkok’s famous buses…..

Buses – Bangkok has 2 types of bus – air conditioned and non air conditioned. I actually use the bus most days to go to and from my office which is around 15 minutes from my condo.

Bangkok BusLets start with the air conditioned buses which cost between 11 – 24 Baht per journey based on how far you travel. I actually really like these as they are comfortable, cool and normally quiet enough to get a seat. I take these most days as I’m lucky to have 4 routes that leave from my soi and arrive roughly every 5 minutes. This is a great method of transport if you are on a budget and I recommend anyone try these to make a short journey regardless of budget constraints.

Bangkok Bus Red Next the non air conditioned buses. These cost between 0 – 9 Baht based on whether it is a “free” bus or a private company bus. The normal fare is 6.5 Baht and you can travel any distance for this price. As an example one such bus runs from Minburi in north east Bangkok all the way to Victory Monument which is 33.5km and takes 2 hours but for 6.5 Baht its a bargain. So what is wrong – well if you travel anytime after 7am or before 8pm it will be a sweat-box. The windows open but fill your lungs with all the exhaust fumes Bangkok can throw at you and a blazing heat that will leave you regretting your decision to save a few baht. However I have used these a few times after 8pm and the cooler temperature makes a semi pleasant experience.

So the bus will be your budget friendly transport option but I have one more point to mention. Traffic. Not only is the traffic bad but the bus will stop at almost every station which will annoy you too. Trying to arrive at a destination at a specific time is also hard as the traffic is unpredictable and there is no timetable so it’s a guess when your bus will arrive.I must also give mention to the number 8 bus in Bangkok which has the reputation of being the fastest, most dangerous bus in Thailand – you should try it sometime if you want to save on roller coaster prices at the theme parks…..

BTS / MRT – If you are in central Bangkok you have the chance to avoid the traffic jams by using the MRT (subway) or BTS (skytrain). They are great but the fares are much higher than the bus. Starting at 15 Baht for a one station trip up to 42 Baht for a longer journey it will quickly hit your pocket if you are moving around the city often. It’s not difficult to hit 100 Baht spends on the BTS in a day which is over 10% of your daily shoestring budget.

Vans –  If you live in a small town or rural area then you probably have the need to go a large town or city occasionally. Of course you can take a taxi but many times the only option is a van. These 15 seat minibuses normally cost between 15- 50 baht for journeys under an hour. If you have to travel a couple of hours then expect to pay 130 – 250 Baht.

Thailand has some of the most dangerous roads in the world in terms of accidents and safety. The vans are a major contributor towards these figures. I have seen so many involved in accidents (usually with a motorbike) that I always feel a bit anxious when I have to take one. If you are living outside of the main cities in Thailand I would recommend a car but as we have seen it’s way out of your shoestring budget.

For me my time is worth the extra money for a taxi or BTS / MRT and I use these methods when needed. On a shoestring budget maybe you wont feel you can give yourself the “luxury” of a long taxi ride.

Entertainment

I bet in your home country you go to the cinema, have a few drinks with your friends or have a hobby. Normally this costs money and whilst it might be cheaper to do it in Thailand it is certainly not free. In other cases these activities might be much more expensive.

Sport – One of my hobbies is to play golf. I played every week in the UK and loved the quiet and the escape from the city. I had a membership at my local club which cost around 30,000 Baht a year. Here in Thailand it costs at least 2,000 Baht to play each time even if I go on discount days as I have to pay for transport, food and a caddie plus tip. If I played every week I would be spending 8,000 Baht a month which is over 30% of your shoestring budget. You could see this spend isn’t possible long term and I would have to cut back on something I really love.
gym-595597_640If you’re living on a shoestring your accommodation probably wont have a gym. You can join the Thai style gym and  get membership from around 1,000 Baht a month which isn’t bad. If you want a western style gym then you can look at Fitness First whose prices start at 2,000 Baht a month based on a 12 month contract. By the time you pay to get there and buy your fitness gear and sports drinks this is maybe around 10% of your monthly budget of 25,000 Baht.

Badminton has quickly become one of my favorite sports to play here as the price is low and there are many courts. For around 120-180 Baht you can hire a court. Then you need to make a decision – do you buy all the gear or rent it. renting costs around 50 baht a time but if you buy your own it will cost around 800 Baht + for a half decent raquet.

Socializing – Also I guess you don’t want to spend all your days alone and will look to make friends. Even though the odd home BBQ is great you will have to go out to places to meet them and do things so will need funds. Your limited budget could mean passing up opportunities to socialize and make new friends which will have a negative impact on your life here.
beer-932994_640At the end of the working week I would always go out for a few beers to unwind and meet with my mates in London. I would probably spend £20-30 (1100 -1600 THB)  each Friday and wouldn’t think anything of the cost. Not working in the center of a city I don’t have the opportunity for a Friday session on my doorstep and have to travel some way. I still go out maybe twice a month for a few drinks and a bit of food. On your shoestring budget you will have to be careful as drinks aren’t that cheap in bars and restaurants. 100 Baht for a beer isn’t uncommon so a few beers and food could easily come to 600-800 baht which is something your budget couldn’t handle too often.Of course you could always be the guy who sits at the bar nursing the same bottle of Chang for 3 hours….

Electronic World – We live in a world run by technology and even if you feel you can avoid it there will be times when it catches up with you. From having to replace your phone to buying a new laptop you will need savings to cover these unexpected costs.

Some of my favorite moments of university involved staying in playing video games, partly to save money. Sounds like you can do the same in Thailand right, but with PS3 games costing over 1,000 Baht it may be a luxury you need to cut.

Next up is the trip to the cinema. I think almost everyone enjoys a trip to the movies and here in Thailand the tickets are much cheaper than in your home country but on your shoestring budget you may not be able to take advantage of it too often. When you buy a ticket, some popcorn and a drink you will be forking out around 400 or 500 Baht. If you go on a date to the cinema it could cost you the best part of 600 -800 Baht. You could of course go on Wednesday where the ticket prices are as low as 100 Baht but for me I think going to the cinema shouldn’t be a money concern when it only costs 200 Baht during peak times.

You are probably saying that golf, gyms, drinking and cinema trips aren’t necessities and I would agree with you but why should I stop doing my hobbies – I didn’t move here to have a worse quality of life. I quickly realised that on 32,000 Baht a month I had to cut back on my hobbies and that wasn’t fair on myself.

Don’t be that person who stays in their apartment all day. You might find you have to be and in the end what is the point of being in Thailand if you can’t take advantage of the opportunities you have here.

Travel

Who comes to Thailand to sit in their room? If you’re here then you’ll want to see the beaches, visit the temples and experience the culture. This isn’t free. Whilst you can book 200 baht hostels and walk around and eat from 7/11 it isn’t a holiday in my opinion.


thailand-686926_640Trips In Thailand –
I want to spend some money on my trip. I want a good hotel with air conditioning and a view. I need to be near the centre of the area I’m visiting and have a few nice meals in a mixture of local and foreign restaurants. I don’t want to be bargaining for a 10% discount on a 300 baht hostel. I don’t need the hassle of transferring between  3 different local buses to get to the hotel. I want to travel by plane and not overnight bus.

On my current budget 5,000 Baht hotels are not an option but I don’t have to worry about spending 2,000THB a night on a decent place. On my 32,000 Baht budget I was constantly looking for the cheapest deal and staying in basic rooms, often without A/C just to save a few hundred Baht. I was outside of the area I wanted to be and in the end my travels weren’t as enjoyable as they could have been.

Getting a deal is a good thing but the sight of people almost begging to get a 50 Baht discount on a ferry trip or hotel is, in my opinion, pathetic. If my friends did that whilst I was with then  I would be embarrassed. If 50 baht is a big deal then you can’t afford to come on vacation. I’m sure this practice of asking for extreme / inappropriate discounts also pisses off Thai people, although it seems they have to deal with this a lot.

Thailand isn’t as cheap as you think to travel in. Sure it is cheaper to visit Chiang Mai than it is to visit New York in terms of hotels, food, transport and tours but it still costs money. I had a three night trip to Chiang Mai when I first arrived in Thailand and for a basic 2* hotel, eating in mid-range restaurants visiting a few sites each day I paid around 5,000 Baht. Then add on the flights at 2,000 Baht return and you can see I spent over 25% of your monthly shoestring budget and didn’t do anything special. This year I went to Khao Yai and with three nights in a 4* hotel,tours, food in mid-range tours and bus transfers I spent 12,000 Baht. It isn’t cheap and for many it would be impossible to do on a shoestring budget.

Trips Outside Thailand – Do you ever plan to go back to your home country? I hear a lot of people complain about their country and swear they will never return (although this is normally after a few beers!). If you do then you need to think of how you can save for the flight home and costs whilst there.

It is likely that your cost of living is higher in your home country and the flights expensive to get there. When I was earning 32,000 Baht I had to use my UK savings to pay for a flight home – I wasn’t able to save anything from my Thai salary. Now I earn enough to cover a flight home and expenses once a year but it still isn’t easy. When I was back in the UK last June I bought a round of drinks at the local pub for my family – 1,700 Baht. The total cost for my trip home was around 65,000 Baht as I stayed at my parents house and lots of people paid for things for me as they felt sorry about my “low” Thai income.  Imagine you live off 25,000 Baht a month an the problems you would have saving 5,000 baht of that a month just to pay for a 10 days back home.

Maybe you don’t fancy a trip home but feel the need to explore local countries. Let us presume you have a valid visa to be here which means you need to get a re-entry permit which is 1,000 baht before you even leave Thailand. Having been to most of the countries bordering Thailand I can say that none are significantly cheaper than Thailand and you will be spending at least 1,000 Baht a day even if you eat / stay in local style places.

It seems that any vacation outside of Thailand will either be extremely difficult to plan on budget or just a non starter if you plan to live on a shoestring in Thailand.

Dependents

Living alone on 25,000 Baht is one thing but if you have dependents it is a whole different ball game. I recently wrote an article about having money issues with a Thai partner which would also be useful for you to look at.

love-316640_640Dating  – I’m sure that you will want to find someone to spend your time with so that means hitting the dating scene. Footing the bill for dinner and drinks might set you back 600 Baht at a low – mid level restaurant and over 1,000 Baht if you go somewhere quite nice. If you want to go somewhere very special then a bill for two people with good food and drinks can be well over 2,000 Baht. One date a week and the minimum you are looking at is maybe 3,000 Baht a month.

If things become more serious then costs can add up and cause a serious dent in your shoestring budget. A lot of Thai people still think that most foreigners are very rich and wont understand that your budget is so low and this could create tensions – dates at street food joints aren’t acceptable too often with many Thai women. Many Thai women also expect men to pay for the majority of costs so the chance of splitting a bill is quite rare. However, younger Thai women are more likely to contribute to costs but it’s down to you whether you would feel happy accepting their money.

Marriage – Congratulations you’re getting married! Sin Sod , wedding venues and party costs all need to be considered. Hiring the venue and food and drink costs are much lower than in the west but to give you an example I went to a Thai wedding recently and 800 people came to eat, drink and dance with the bill being picked up by the groom. To be fair that’s a big bill for anyone to pick up but on your shoestring budget its unlikely that you will be  able to save up for the special day.

Family Life – I can’t even think how you could support a family on 25,000 Baht a month. Medication, insurance, clothing, education – the list goes on. If you even  have the idea of starting a family or bringing yours to Thailand then you will need a much bigger budget than 25,000 Baht. In their  What Is The Cost Of Living In Thailand – 2015?  article TheThailandLife.com said a budget of 80,000 Baht for a couple with a baby would be reasonable in Bangkok and I would agree with their view.

Family Back Home – If you have family back home which you need to support then you will be struggling to send money back to them if you live off 25-35,000 Baht a month. Not only will you have limited funds left at the end of the month but you will also be paying fees for overseas transfers.

Another important issue is in terms of birthdays, Christmas etc when you might be expected to send gifts to family members. The easiest thing to do is to send money or get presents delivered and this will be an additional cost. Of course if you buy gifts and the cost of them is totally your decision but it could lead to disappointment and alienation between family members if you decide not to send anything because of budget constraints.

Overseas Responsibilities

Debts – Often people forget about their responsibilities in their home country. I left for Thailand thinking that it would be the end of paying my student loan but they tracked me down through my family. I now pay just over 2,000 Baht a month back after they calculated my repayments based on my Thai salary.

Maybe you have loans or credit cards to pay off in your home country. Running away and not paying them will leave you in a worse mess than before so you’ll have to find a way to send some money home every month to cover the costs.

Overseas Property – Perhaps you are funding your Thai adventure by renting out your property in your home country. With rental prices being quite high  in many countries this could give you 25,000 Baht a month to use after you pay your agent fees and insurance etc.

Maybe this works well for a while but what happens when you can’t get a new tenant at the end of the contract or have to offer a discount to attract someone. There is also the possibility that your house requires decorating or even renovating which will take a serious chunk of your shoestring budget to cover.

I know a couple of people who fund their life in Thailand by renting out their UK/US properties and they have done OK so far but it certainly doesn’t provide the security most people would like.

Savings

We all like to try and save a little money for a rainy day but if you live on a shoestring in Thailand then it may prove difficult to do.

Savings From Home –  Maybe you have savings from back home that you plan to use to support you. Many people use this as a backup but ideally you want to leave these for necessities. You don’t want to be using money to pay for food or rent every month but if you live on a shoestring in Thailand you may find yourself dipping into your savings more than you hope to. As I said before I had to do this for the first 6 months I lived in Thailand until I upped my salary significantly.

Many people have the plan of living from savings and don’t factor in inflation or if they do are surprised by the fast changing price of many essential products. Sometimes people presume that everything is cheap and when they arrive are not ready for the high price of many imported products.

gold-1013618_640Saving Money – If you are here to work you maybe have a plan to save money for your future or to fund a project/ travels.

It is certainly possible to save some money here as you can see from the Cost of Living Guide on Ajarn.com. You will also see that the majority of these people who save money are earning upwards of 40,000 Baht a month.

Living on 25,000 Baht a month means that you can probably just about take care of your basic needs but will struggle to put more than 2 or 3k away each month for savings even in a “good” month.

Living From Pensions – This is an option a lot of people talk about. Using a basic pension to live from. You have saved this money all your life with the aim of funding your retirement. The basic UK pension in 2016 is £115 a week which is around 24,000 Baht a month. This is even lower than the shoestring budget I set so living off a pension is only an option if you have invested extra funds into it over the years or set up a secondary private pension.

Thai People Live on $300-600 a Month – Why Shouldn’t I?

Many people say they if local people can live for less than $500 a month then it must be possible for foreigners to live on around the same budget or maybe just slightly more.

Let me say that this is just not logical. I think every Thai person wants to earn more money and have more to spend. You can look at the recent example of teachers in Thailand who are in debt which shows that even on 12 – 17,000 Baht a month many Thai people cant live the life they want and have to rely on borrowing money. The younger generation especially is more aware of the world and hold ambitions to travel, develop and improve their lives.

Also many Thai people live with their families so do not pay rent, utility bills and have a very limited food spend. Family units are very strong in Thailand and they all support younger members through university and their first few years working. This means they can buy clothes, have cars and go on trips in Thailand. Many people are now attending university to get jobs like engineers or accountants which pay up to 50,000 Baht a month.

Finally it goes without saying that you aren’t Thai. The reason you are thinking of living in Thailand is because of the lifestyle, not that you want to be Thai. The average Thai person doesn’t have the same quality of life as the average person from the west. As such you shouldn’t compare yourself or have the desire to live in the same way as this average Thai person in terms of finance.

How Much Money Should I Have?

For each person the amount does vary. A good figure to look at is the requirement for a Thai retirement visa which requires a minimum monthly income of 65,000 Baht. This would allow you to live to a good standard but you would still need to be careful with your money as you could spend that amount quite easily. However, for a Thai marriage visa you only need 400,000 Baht a year which is 33,333 Baht per month.

Personally I would say if you are single and live in a major city or tourist destination you should be looking at a monthly budget of 50,000 Baht to have a good standard of living. Outside these areas 40,000 should  be enough to live comfortably and save a few Baht every month.

My Current Situation

You can look at my monthly cost reports to get an idea of my monthly income as it does vary monthly. I would say my average income is around 65-70,000 Baht. It is enough to save some cash every month, spend money on the things I like to do and make monthly payments on the condo I bought.

I certainly don’t live the millionaires lifestyle and I have to plan carefully to make sure I have enough spending money for vacations and trips home. I try to stay away from the tourist areas in Bangkok as much as possible and live in the outskirts of the city where things are cheaper.

For the future I will be planning to up my income to around 100,000 Baht a month as this will give me much more freedom and allow me to save a significant amount of money every month.

Finally..

I am aware everyone lives differently and you may not agree with everything or anything I have said so feel free to let me know below in the comments section.

If you have any questions I’ll be happy to answer them too. Thanks for reading.

 

Photo Credits (All CC Images – click for original source):

https://www.flickr.com/photos/theilr/4897046440 – by Theilr

https://upload.wikimedia.org/wikipedia/commons/thumb/7/73/House_party_in_Denver_Colorado.JPG/1024px-House_party_in_Denver_Colorado.JPG

https://upload.wikimedia.org/wikipedia/commons/0/04/Scooters_Bangkok_Nana.jpg

https://www.flickr.com/photos/abdulrahman-cc/11413815505 – By Abdul Rahman

https://www.flickr.com/photos/ianfuller/3588845446 by Ian Fuller

https://www.flickr.com/photos/ianfuller/3123226100 by Ian Fuller

 

 

 

About Richard 176 Articles
British guy living and working in Bangkok, Thailand since 2013. Running LifeInANewCountry.com teaching and writer of Settling in Thailand expat book.

9 Comments

  1. Dude, this is a monster post! You might want to rename this as – Every Expense Imaginable in Thailand! I’ll be coming back to this if we decide to move to Thailand…. (too many expats and tourists for my taste, but we do love vacations in Thailand!)

  2. This is a response to your article on Ajarn.com, regarding your decision to stay or go. Because the posts go through moderators, I thought I would also post it here:

    I am intrigued. Your previous blog articles all seem rosy and positive. Why the sudden change?

    I would tend to agree with others. You should really consider leaving Thailand. Right now you have a job, not a career. You live in a country, not a home. You don’t have a plan and you urgently need one.

    But at least you seem to be aware of it. Whether or not you act on it is a different story…. most expats know that they are squandering aimlessly, but don’t make much effort. Most assume things will work out in the end, and rarely they do. I spent 2 years in Thailand, and I left because the farangs are generally all scum and lowlifes and difficult to be around. It is difficult to make meaningful friendships, and I was working as an IT contractor for Cognizant. Generally a professional environment, but that was only inside the office.

    It seems there are a few things that keep you where you are:

    1) Your girlfriend – 18+ months together – if you haven’t though about marriage, that might be a sign it is time to move on. Some people don’t believe in marriage and that is fine, but if you want your girlfriend to live outside Thailand, it is nearly impossible if you don’t do it. What is her skillset? What does she want to do deep down? Surely it is more than working on this website. You seem to talk so highly of her qualifications and speak so lowly of yourself (I can only do 9-5 jobs, I only know about sales, I can only make xxx amount of money, etc) You clearly have a little IT experience and website design, so put those skills to work.

    2) Your condo. You expressed a need to stay until it is paid off, and you want to make sure it is “rented out properly” Are you seriously going to let a building determine your future?

    3) Your website. I cannot tell if this is just a side project, or if it actually generates income. There are ads, etc. but you gotta ask yourself if the time you invest into it is worth it. (The income you generate compared to the number of hours of work) Also, because the focus is about measuring and reporting on the cost of living in Thailand, it would likely be defunct if you were not in the country. You have a lot of analytical skills…. looks like you are good with numbers, etc. Perhaps a data entry-type of position down the road would be something to consider.

    My advice: Start a new career. Push the reset button. Make the hard decisions soon. This requires moving permanently. Sorry, but a 28-year-old who doesn’t have their full heart into their professional and is making grossly-low wages has no business owning a condo and thinking about living in Thailand forever. I understand you have enough to live on, and save every month. After your condo is paid off, you can save more, I get that. But generally speaking, there are peaks to earning power in Thailand. Let’s just say 100k baht a month. Think about your future, potential family, investments, etc. I highly doubt it is enough. And you are right… you don’t wanna be a 40/50 year old washed up teacher.

    The problem is the labor market when you return home is going to look at your CV and have a lot of questions. The longer you are in Thailand, the harder it will be to launch a real career. Trust me, it can take a good year just to get into something worthwhile. But the longer you hold it off, the harder it will be. Your LinkedIn profile has 5 connections. It should be at least 100. You are 28 years old. So you came to Thailand around age 25. What did you do from 22-25 after University?? Go to networking events, talk to business people, and focus a little more on what the heck you are doing at this point in your life. Have a plan. If you don’t, then create one soon while you still have a chance.

    Good Luck

    • Hi Alex,

      I responded on Ajarn but thanks for submitting your comment here too.

      There are issues of being an older teacher and not knowing when the right time to leave is. Living on a shoestring is never fun and is something I would hate to do, especially later in life when things like medical care and pensions are so important.

      I’m glad you left at the right time for you, and it’s something I feel is important. I love being in Thailand but right now it is time to think about the future and being able to live somewhere with better opportunities and pay.

      Planning is very important and that will be my next step with my girlfriend. Planning our future and thinking what to do next. we will always have this link with Thailand and wont be jumping ship tomorrow.

      I appreciate you taking time to post and give your experience, it has certainly helped me a lot and I’m sure others will take note and think about their life here in Thailand too.

  3. Demistifying life in a foreign country in a great way. Love the post.
    Especially relevant to all the people hoping to make it work coming from an even poorer economy.

  4. Hi Richard,

    I really enjoyed this post. Many thanks for sharing and hope others will benefit from it. Keep it up

    Best,
    jwny

  5. Good breakdown for newbies considering relocating to thailand.

    I have been travelling to thailand 2-3 times a year for the last decade +, basing myself out of Bangkok, with shorter trips to other parts of the country. I usually rent a small condo in the sukhumvit area about 3 months each year – In the nana/asok areas, what is basically a large hotel room with balcony, air-con, hot showers, cable/satellite tv, wifi, free utilities, laundry service etc – comes to somewhere in the 15-20k/month range, and would not be viable at all on a shoestring budget like what of the travellers I’ve seen around bangkok appear to be aiming at.

    Food CAN be done on the cheap – Pier 21 (the lvl 5 food court at Terminal 21) has a HUGE amount of variety, including western dishes, and most mains are in the 30-50 baht range. 3 meals a day there including cold drinks & desserts can be had for 150-200 baht per day.

    Like you mentioned, transport will be a big factor – One option I often use is to find a couple of motodops with passable english, and get their numbers. Cheaper than a taxi, faster than a bus (faster than anything else actually, since they can get you through/around traffic jams), and safer than trying to drive yourself on a motorbike. If you often go the same route every day at the same time, eg to/from work, then negotiate a weekly or monthly price.

    Grocery shopping – Avoid the bid western-style malls and supermarkets, use 7/11 sparingly, and try to get most of your fresh food from wet markets. I have lived and worked in SE asia for most of my life (NOT on a strict budget, admittedly), but still do 90%+ of my shopping from local wet markets.

    Looking at my annual trips, a budget of 80-100k baht per month is needed to live comfortably, including some multi-day trips to places further afield – Hua hin or krabi usually – and some touristy/ leisure actvities in bangkok.

    • Thanks for adding your excellent advice Andy!

      terminal 21 is a good call but I dont think I would want to eat there 3 times a day, imagine planning your day around being there!

      80-100K a month is a decent amount of money and as you say leaves you with enough to live comfortably and travel around.

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