In March 2013, we each had our one carry-on and two checked bags and a plan to move to Thailand and live on $1000 a month. We were ready to embrace a new lifestyle in Chiang Mai that included plates of food for a dollar and rent for only a few hundred bucks. It turns out that even though we set aside a “move in fund,” we completely underestimated the cost of our first month’s budget. We’re sharing our biggest Thailand budget mistakes, blunders, and solutions for the prospective expat.
Adjusting to a New Budget and Lifestyle Ain’t Easy!
It’s pretty damn hard. What we thought we’d buy and what we actually bought were quite different. As we were finding essential things for our new home, we felt a little homesick and succumbed to buying brands we recognized and familiar western groceries. We allowed the convenience of superstores that accepted credit cards to cloud the reality of how much we were spending.
We underestimated how much we would spend during our first month in Chiang Mai and failed to stay within our $1000 monthly budget even when combined with our extra move-in fund. We hadn’t mentally switched over to our new monthly budget, and we were in for a shock when we began shopping in superstores and realized how many things were just as expensive as back home.
Items That We Budgeted For Prior to Moving
Before we beat ourselves up publicly about our Thailand budget mistakes and failures, here’s a short list of the things we actually budgeted for and got right.
First Month’s Rent: $500
Although we weren’t completely sure what we would end up spending when it came to monthly rent, after doing our research we thought it would be realistic to budget for something between $300 and $500 a month. We heard about those lucky few that pay less than $300 a month for a place, but we were bringing our cat along and wanted to live near Chiang Mai’s old city, so our price was a lot higher.
Laptop: $1200
We sold our desktop and only brought an iPad to Thailand. Knowing that our iPad was more for convenience and not necessarily the workhorse we needed, we set aside extra cash for a quality laptop that could handle picture and video editing for our budding blog.
Motorbike: $5570
We agreed to buy a new motorbike because we knew we would be here for a long time and didn’t want to worry about secondhand mechanical issues. The entire package, including a Thai residence certificate, accessories, and insurance was toward the top of our allotted motorbike budget. However, we paid upfront using the money we made selling our car in the US to ensured that we’d continue to stay financially free of any debt and payment obligations.
Thailand Budget Mistakes That Blew Our First Month’s Goals
It only took a handful of large shopping trips to destroy our spending goal, and we’re embarrassed by how much we overspent. For those who are curious, here are our Thailand budget mistakes within the first month moving abroad:
Imported Groceries: $200
We should have just accepted imported western groceries for what they are, expensive and difficult to find, but we tried stocking our kitchen with familiar food anyways. We later realized that it’s more cost-effective for the two of us to go out and eat Thai food more often.
Household Items: $380
We needed things such as linens, toiletries, cookware, and cleaning supplies. We shopped at Robinson, Big C, and Tesco Lotus, which are Super Wal-Mart equivalents. These superstores sell overpriced name brand items that burned through our budget.
Furniture: $390
We figured we’d be living in a fully furnished apartment, but we jumped the gun and fell in love with a partially furnished townhouse after our studio apartment fell through. Unfortunately, the pantry, cushions for our daybed, and a computer desk and chair were as expensive as furniture back home.
Camera and Video Equipment: $815
We treated ourselves to a nice DSLR camera as a Christmas present before moving to Thailand but ended up spending $175 in additional camera equipment once we got here. We also ending up buying a GoPro camera with various accessories once we were in Chiang Mai.
Security Deposit For Our New Home: $1,000
Something that we hadn’t considered before moving was the prospect of having to pay a security deposit for our home in Chiang Mai. We knew this to be an unavoidable reality in the States, but we were so excited by the thought of paying less than $500 a month in rent that we were completely blindsided when we needed to pay two month’s rent security deposit.
TEFL Certification: $1,500
A Teaching English as a Foreign Language (TEFL) certification is great to have on a resume if you’re looking teach in Thailand, so Angela enrolled in a class that was offered in Chiang Mai within the first month of moving here. With a new school year starting only two months after we arrived, earning the TEFL so soon proved to be a wise decision.
Could We Have Spent Less?
We saw the electronics as investments in our blog and the TEFL certification as an investment to secure a teaching position. These things could have been purchased while we were still living in the States, but with the limited space in our luggage and our busy schedule, we decided to wait until we arrived in Thailand. Could we have purchased a less expensive motorbike or rented one for a while instead? Yes, but after experiencing a few 150cc rentals, we love our 2013 300cc Honda Forza and think it’s an excellent choice for two people living long-term in Thailand.
On the flip side, we shouldn’t have spent nearly $1,000 on western groceries, furniture, and household items. No matter how convenient superstores may be, they open you up to budget mistakes. We simply should have avoided one-stop-shopping habit because of the expensive price tags. No matter how much we wanted to make our new place feel like home, we shouldn’t have been so anxious to fill it with stuff again. Especially after working so hard to sell everything we owned.
How Much Do We Spend Now?
We’ve since recovered from our Thailand budget mistakes during our first month in Chiang Mai. We actually increased our monthly budget to $1200 and it has worked well.
We never step foot in the superstores and instead buy all of our fresh produce from the local markets and the occasional packaged item, such as yogurt or dry noodles, from our local mini Tesco Lotus Express or 7-Eleven.
Household items, such as dishes or curtains, can be found at outdoor shopping markets. We’re lucky to have the Warorot Market in Chiang Mai, which is located just outside the northeast corner of the Old City.
We also learned our lesson to stick with fully furnished houses and apartments in the future due to the disproportionately expensive furniture . We would do things differently if given a second chance, but at least we’ve finally found a happy balance.
Takeaways from Our Thailand Budget Mistakes
Although we failed miserably at our first month’s budget, we learned valuable lessons that will help us with moves future. We hope they serve as a pointers for those looking to make similar lifestyle changes as well.
Slow Down
The biggest thing we learned is that you shouldn’t rush off to replace the things that once made you feel secure in your home country. This will almost always lead to costly budget mistakes. Learn to live with what your new surroundings can offer you. Don’t give up so easily and head for the superstores if you cannot find a particular item at the market or local shop. You’ll feel accomplished when you do finally find that item you have sought for so long. Remember, there is a chance that others have gone through exactly what you’re going through, so make sure you look around for tips online.
Track Every Purchase
If you’re moving to Thailand or another predominantly a cash based society, then tracking your spending will be key to being successful during your first few months abroad. There are plenty of smartphone apps that will do this for you. Budget mistakes are going to happen, but being able to take note of them before they become a problem can really save you from prolonged issues . After our first month’s budget mistakes we found a great app called Trail Wallet that helped keep us under control moving forward.
Overestimate Your Spending and Save Accordingly
You’re about to move halfway around the world. You don’t want to underestimate your initial budget, but if you do, make sure you have extra cash for emergencies! If you don’t have work lined up or some sort of reliable income stream then you should make sure you have enough to get you through those first crucial adjustment months.
Yes, some bloggers make it seem extremely easy to just get up and move, and a few have had success in not planning much at all. But is that really a risk that you’re willing to take? Nobody wants to quit their jobs, sell everything, say their goodbyes to loved ones, and then turn around once they realize that what they saved isn’t going last long enough to get their new lives in order.
Expat life can be as great as you allow yourself to make it. Remember why you’re making the change! Don’t let unpreparedness ruin the way you see your new home before you have a chance to let things develop. Save at least one and a half times more money than you think you will need to make it the first ninety days. Budget mistakes are bound to happen, but it’s how your prepare yourself in advance that can make or break your big move.
I think it’s awesome you’re writing about ‘forgot-to-budget’ items. I’ve done plenty of expense logging while traveling and while staying in Bangkok, and it’s always surprising to see how much things can add up. Even small things like gifts, souvenirs and the occasional coffee at a nicer coffee shop add up quickly (probably more so in Bangkok than in Chiang Mai). There’s no shortage of blog posts about living a life of luxury in Thailand on 300 USD a month. That might have been feasible a few (okay, many) years back, but nowadays things are a tad more expensive. On… Read more »
Yeah, unbudgeted items like those (although usually not quite as big) creep up on us every month! It’s probably about time that we do another big budget post but this time take into account the past six months and then average everything out like you did. There’s always something, whether a visa related expense, a sudden trip out of town, or a splurge that just comes out of the blue. Our budget keeps slowly increasing, we need to cap it off soon! We are so over those posts about living in Thailand on 300 USD. It sounds entirely miserable and… Read more »
Great post and a real eye opener. We are planning our move now from the UK with 3 kids who we plan to educate while on the road. I have been fairly strict with the budget – and your post pointed out some things that I hadn’t thought of, so thank you so much! It’s a long way off for us (12 months) but reading through your posts it’s really not that long – considering what there is left to do (SO MUCH!). Thanks again for posting all this info, it really is a great resource – and when we… Read more »
You’ll find that time flies because there’s a lot to do before the move if you want to be as best prepared as possible and selling your belongings (rather than give away or throw out) to make money. Were glad we could give you guidance with your big move. Best of luck!
Thank you so much for posting this! It’s definitely given me a better idea of what to plan for when I arrive. I’d love to pick your wife’s brain about her experiencing teaching their and the course she did. What’s the best way to get in touch?
I find buying a bicycle can help reduce transportation costs in the long term, then you can sell your bike after for around 60-80% of resale value. CM is a small place too so a bike is ideal. I got myself a bike at the Big C for around 2250thb
We can definitely see the benefit in going without the motorbike, but we enioy the convenience that ours provides. We spend no more than 600 baht a month on gas so we’d cut in other places first.
Thank you for your honesty!
I know I would be exactly the same, wanting the comforts of home too much to think, “wait… my budget…”
Still, 1200 a month isn’t too bad for two people. Nice work guys!
It definitely took a few months to break that mindset of buying stuff (unnecessary decorations or familiar Western food) that broke the budget. It’s all a learning experience, but we did much better after changing our buying habits and became comfortable shopping at the local market and getting away from materialism. $1200 is doable for two after changing the spending habits. It’s awesome in the long run though!
There’s always some hidden surprises…like sheets! Why are sheets so dang expensive here…and never have a top sheet!
We are dumbfounded by bedsheets as well! We read on another traveler’s blog that they went to Warorot Market, picked out a fabric, and then took it to a seamstress. They had pillowcases, a top sheet, and a fitted sheet made – all for under $15! We will be doing that next time! It’s embarrassing how much we spent for sheets at Robinson…
Hi Chris & Angela – Found you guys through your guest post on Man V Debt. Love the blog and catching up on your posts. My question is – do you think it would have been possible to stay in your “9 to 5” career fields (I believe it was, respectively, Operations Management and Research) while in Thailand? To clarify: could you still have done work in the same field, but no longer tied to the company or role? I work in Hollywood, my gf works in immigration law, we both want to continue our work in those fields (even… Read more »
There is a very small chance, if at all, that Chris would be able to work in the same field. Angela would not be able to continue her line of work in Thailand at all. We are ok with that, though! We are not totally familiar with employment opportunities and laws outside of teaching. However, we understand that if you want to work in Thailand, here are the conditions: 1) A non-Thai company contracts you out and you are relocated to Thailand 2) You work for a Thai company. The huge majority of foreign workers are teachers, and some are… Read more »
Right sounds like you have to make that switch to teaching / online business to make it work. Awesome you guys are doing it!
Great post. The security deposit would never have occurred to me!
Yea, one of those things you totally forget about when you become so focused on how dirt cheap the rent is here :)
Thanks for sharing this. Travel budgets are always blown on things not directly related to the trip itself. For us, it’s always pet care, new gear, and transportation to and from the airport.
Right, not the “fun stuff.” We’ve already had some extra expenses racked up due to the cat and then we went a little overboard on camera and video equipment ourselves. It’s hard to think of it all though!
I have lived in Phuket now for 12 years and the cost has been around 50k a year.I thought as most foreigners that well my money would go a long way.I lived high on the hog buying Harley’s and long term leases for houses ,shopping where I wanted eating, drinking and long term women. then along come 2 beautiful babies girls and a life changer for a retired man.I now budget my expenses and stay away from the high life as the cost of school have taken up the price of fun I enjoyed your article and agree 100% with… Read more »
Thanks for sharing your story. No matter what your monthly budget is, whether $500 or $4000, everyone still goes through the same adjustment period and spends more than they think they will. We are slowly learning Thai, and we agree that it will be helpful when time comes to negotiate prices and to get the best deals on things.
I’ve made two big moves in my live, and no matter what, the idea of a budget just seems to go out the window. It seems to take at least three months to arrive at a reasonable idea of what regular expenses will look like for the new area.
You are exactly right, and we feel the same way. There are just way too many adjustments and obstacles that present themselves during the initial 90 days of living in a new place. It is best to just try to get your bearings, and then when you have a bit of experience and know-how, to go ahead and come up with a reasonable budget. Thanks for the comment!
I travel alot and it is easy to over spend. I haven’t moved to a foreign country and I don’t think I could be that brave. Doing this while you are young is wonderful. As you get older you get set in your ways and to just pick and move is hard. As long as you are happy then all of this is a learning experience. Most of the countries we visited, people do have the refrigerator capabilities of the US. We tend to stock up on food as if we were going to have a snow storm and be… Read more »
We both realized, after only a handful of years at our jobs, that the time started blurring together. If we couldn’t remember one summer from the next now, we couldn’t imagine what life would be like after 20 years of being set in our ways. Yes, we are happy to have realized it now! When we do shop at the local market, it is a quick stop to buy just a few things. There is a completely different mentality here – buy fresh and often, rather than stockpile dry goods and frozen food. Having a big refrigerator was high on… Read more »
The hope I find in your mistakes is just knowing how compared to the USA other places sound much more affordable. Thanks for the step by step of how you got to stop the see saw of a what now sounds like a realistic budget.
Over from the LinkedIn group BHB.
Thanks for the feedback! Yes, your money goes a lot farther in this part of the world. The challenge is locking down a good budget and taking full advantage of your new surroundings.
Always enjoy your posts guys. I plan to ‘re-THAI-er next Summer. My budget will be about $1800/mo. as a single guy. I appreciate your advice about superstores etc. I expect to pay about $-500 for a nice big condo. Why so much? I don’t want to live in a studio and want room to entertain if you will. Pool, balcony, kitchenette are a must. Then I’ll pare down the day to day expenses as required. I also plan to teach which will be an added plus. I’m excited about the move as I’m sure you guys were. It may not… Read more »
By all means, we think you will be quite comfortable on $1800 per month, especially with the extra money for teaching. And yes the superstores are the cause of our biggest money blunders. Thanks for sticking with us during our journey – we know yo’ve been with us from the beginning! We’d love to meet up once you are settle in here.
This is a very interesting article. I have thought about moving away and living somewhere a lot recently.
A step in the right direction! Is there anything you want to know more about that would help you with your move?
I love your story and your advice for budgeting for a life abroad. How exciting it must be to just pack up and go. You realize quite quickly what you can learn to live without. Living in a hotel room I’ve realized some of those sacrifices on a completely different level of course. I look forward to reading more about y’all’s journey! Thanks for sharing it!
Thanks for finding us and following our story. Selling everything and then going was exciting, and also a bit stressful, but we are really proud of our decision to move to Thailand. It took a few months to get rid of our old buying habits, but now we simply no longer desire a lot of the same things we had back home. We really did figure out what was important to us and it’s an exhilarating feeling knowing that “stuff” isn’t holding us down any more. We’ll continue to share our experiences and what we learn along the way.
This is just what I needed. I just wish you had 2 kids in that budget too and then it would be perfect for me. :-) We sold it all and have been living in Spain off of about $3000 a month for the past year. We are planning to go to SE Asia sometime next year and are starting the planning and budgeting phase for either Chiang Mai or Penang. This is very helpful! Thanks
Glad you found us… and all the way from Spain! Kudos to you for starting a new life abroad with your husband and children. There is a growing community of families who’ve done what you have, and it’s amazing that families travel the world and do not feel obligated to stay in their home country as they grow. If you find yourself in Chiang Mai, let us know!
Yep it is very easy to overspend when you first arrive to a foreign country. I’m surprised that some name brand stuff was expensive. When I shopped at Walmart in Beijing, some of the familiar brands (like American deodorant, soaps, facial cleansers) seem to be the same price as home. But home to me is New York City.
Sometimes familiar brands and products are the same price as back home, while others seem to be a little more expensive. The problem stems from going from a $5000+ monthly budget to a $1200 monthly budget. Assuming some products are the same price in either the US or Thailand, that $8 bottle of shampoo or $3 deodorant is now incredibly expensive relative to our super reduced budget. So it’s not that the prices really changed much, it’s that our budget shrunk. What used to be $100 shopping trips to the grocery store back home are now $20-$25 trips in Thailand… Read more »
Oh true!
Ah, I have learned those life lessons over the years too. I always thought living in Thailand would be cheaper than in the states – I’m surprised to see it can be just as expensive (not comparing it to major cities in the states)
Looking forward to seeing more pics.
There are some people who can spend as much in Thailand as they did back home, but we made an effort to live off of $1200 per month compared to roughly $5000 per month back in the States. It just takes experience and time to figure out where the most affordable items are while also making a lifestyle adjustment and simply not buying some of the more frivolous stuff we were used to having back home. I can’t think of a singe place in the US where you can rent a two bedroom three bathroom townhouse in a city for… Read more »
Good post. Its nice to see that don’t sugar coat or make it look easy living in LOS like some blogs do.
You mentioned that you will be doing videos… how is that coming along?
It’s unrealistic to paint a pretty picture about everything. Glad you liked this reality check.
As for videos, we’ve taken about a dozen hours of film during our trips but haven’t put anything together yet. We’ve been focusing on getting our photo composition and quality up, but we do plan on putting our GoPro’s material to good use and teaching ourselves some basic editing techniques. We know vlogging is a whole different world!
I did lots of these when I moved abroad too…great advice! Only wish I would have read it before I left ;)
I think what you experienced is pretty much par for the course for anyone who is traveling, whether you are moving long-term or just visiting for a few days. Tony & I always write off our first few days in a country as being more expensive simply as we figure out what fair prices are for things, where the non-touristy restaurants are, and just get our bearings. I also think it’s a common mistake for people to automatically assume that since you’re in Asia, EVERYTHING will be dirt cheap, when in fact, most countries (like Thailand) have such high import… Read more »
We have to laugh and shake our head in agreement – not everything in Asia/Thailand is dirt cheap (as we soon found out) and some things are less expensive if we had simply bought it back in our home country (unpacked from original boxes, washed, and with tags cut out, as we’ve been told) because of the import tax. And we agree, there is that adjustment period that it takes to find the cheap, local restaurants and figure out how to get around town without paying an arm and a leg. You’re right, if you had told us you had… Read more »
You’re bound to make mistakes in the first months of travel. That being said, we only have as much as we saved as we aren’t planning to really work this next year. We’ve come to an agreement that we would rather live the way we want to live for 10 months than scrimp and save to make it to a year, but everyone has different priorities. We’ve decided to rent an apartment for a couple weeks for our own comfort, which cost more, but we were also able to buy some groceries and cook for ourselves, which will theoretically save… Read more »
You are right. It really puts a bad taste in your mouth to be just as worried about money as you were back home before you left. There is definitely something to be said about a challenge or a struggle, but that really isn’t for us at this point. We left life back home for greener pastures. It sounds like you guys have your sights set in on exactly what you want, and we are excited to see how your journey progresses. Good luck guys, and thank you for your comments! Oh, and you all of a sudden got us… Read more »
Yeah…it’s not great. Ever eaten mutton? It’s in everything. The food is fine for a meal or two, but weeks of it is a bit much. Happy to have a kitchen for a couple weeks! Dinner would be awesome!
Thanks for a great post, and some good advice. I made many similar mistakes in the beginning, but finding my local markets and getting over some Western luxuries has helped a lot. =)
Thanks! Yea, as long as you are prepared for the worst it isn’t too hard to bounce back from initial budget mistakes. Glad we weren’t the only ones!
It’s refreshing to hear a dose of reality. thank you again for your insight.
A nice does of reality never hurt anyone. We met a few people that have had some rough transitions lately, so we though it would be best if we let people know the troubles that we had initially. Glad you liked it!
Great information! Thanks! Interesting that I am in the process of checking out a laptop for our move using the same qualifications as you had. Then checked your link and the lappy you have is one of the ones that I am considering. Would like to get your feedback about it. Then I clicked on the GoPro link and this is the first time I have seen anyone selling them for less than $399. Decisions, Decisions. I agree that a lot of folks underestimate and/or under-report what the real costs are of making the move and the information you provide… Read more »
Thanks, Vince! We are hoping this information saves a few people several hundred (or thousand) dollars! We definitely are loving the laptop. It is fast, sharp, and a manageable size for the punch that it packs. To give you an idea, on our last 6 day trip I was able to carry my laptop and a weeks worth of clothes in a normal backpack with little discomfort. Seems to be pretty rugged as well. As far as the GoPro is concerned, buy it before you get to Thailand. They are grossly overpriced here. Don’t make the same mistake that we… Read more »
Lin clicked through your link and bought the GoPro and some accessories (we always buy the wasabi battery packs). Can’t wait to play with it and then use it in LOS.
Thanks for doing that for us! We know you two will put it to good use. You guys are the best :)
Great post and never a need for embarrassment. This s what travel blogging is for! To help others and share information. :) I thought it was great and full of very useful information. First off I see you are both caucasian, and Westerners, so people see dollar signs and your prices, other than at the “Super Stores” will be adjusted accordingly. My dream is to also move and retire in Thailand, but I will have one edge because I am married to a Thai which helps. She is a great negotiator and knows a rip off when she sees or… Read more »
Sharing these types of (embarrassing) stories is what helps the next traveler achieve their goals. We’re glad you found this post useful. And yes, we will keep sharing our experiences as we live and learn more in Thailand. Everything is working out well for us here in Chiang Mai, so we plan to stay for several years at very least. You are very lucky to have a Thai wife – get her help as often as possible! Is there anything she’s taught you that is invaluable when in Thailand? Yes, being Western is often associated with lots of money, and… Read more »
Another excellent post guys! We ran into the same issues in the inital month or two living in Chiang Mai. It’s almost too easy to get off track when you walk into the grocery stores and see something from home. You’re so right when you say that people make it sound so easy and so cheap. The tip for overestimating is excellent. Worst case you don’t spend as much as you thought you would and you’re feeling like a champ! ;-)
Thanks, Ryan! Yea, I think there are a lot of people out there that sell the “living like a king” line just a little too hard. There are definitely tons of great things here that cost next to nothing, but the really good deals take a little while to find. It takes some work, but once you find that good budget rhythm things really start to go according to plan. What is funny is that when typing this post up I actually used the words “feeling like a champ” when describing what it feels like to find something that you… Read more »
Excellent, realization, we never even bothered with that. But because we also live out of town our expenses are even lower, except for me, I like to party a bit, but drinking outside of town is half the price of drinking in town. We have the local hill tribe markets near us depending on the day of the week, and we go to the major stores for the things we consider necessary. We bought a second hand bike (135) FOR 27,000 BAHT and does us nicely, but we also needed a yard/garden for our massive dog, Our flights to Chiang… Read more »
Thanks for the comment Ron! You always have good things to say. We love our lives here…it just took a little while to lock the budget down. If you come with a little extra padding then you really don’t have too much to stress about. Hopefully this helps a few people out.