The Cost Of Living In Thailand

[Tornado]

To enjoy a decent standard of living, anything less than 2kUSD a month would be constrictive. Personally, I don't want to be strapped behind a buffalo working the rice fields in my dotage!

80,000 baht per month?

you must be a big tipper

What on earth do you spend 2000 Us per month on Boon Mee?

[dutch]

Hey Pnu,

Is there a golfcourse near your future home?

I would love to chase the little white ball around , looking at you behind the buffalo.

Thaihome.

He is teasing me!

(we are both member of the ofcs )

[RDN]

If one does not have an inflation adjusted pension, social security or the like, then you definitely should look to living too long.

This is a reminder for all UK expats (I hope it's not a heart-attack inducing shock): when you leave the UK and start to live in Thailand, your UK pension will be frozen; that is, it will remain fixed. No increase in line with inflation or anything else, even though pensioners in the UK, and expats in the USA and EU will get the increases. There are now UK expats living in South Africa whose UK pension is now £10 per week, because that's what it was when they left the UK.

Wonderful government we have, eh?

Visit:

http://groups.yahoo.com/group/bep/

[Emuu]

Hands up everyone on this post who predicted Pol Pot's reign in Cambodia!

Hands up all who would want to stay here and/or leave their family here if the likes of Pol Pot got into power in this country!

Hands up those who will guarantee me that when the current monach of Thailand departs this earth that it will be impossible for the wrong person to get too much power!

Having sufficient money stashed in an offshore investment strategy to enable you and those you love to have a life (not just an existance) is a prudent way to ensure that political and/or economic risk (and folks, this is Asia not the USA or UK) do not prevent you from thriving.

But let's assume that never happens.

Any budget that does not leave plenty of freeboard to cover the unexpected is likely to sink.

I notice that no-one has mentioned the rising costs of repairs on your 20 year old car and house in the future. Then there's all of your electrical appliances, clothes, linen and everything else that you own that will have to be replaced periodically.

All of this of course assumes that nothing will change the visa requirements you are living under. If you are not a Thai citizen, there is no obligation on the government to allow you to stay here at all.

Variables and risk are part of life. Planning to minimise there impact may not add years to your life (exept by reducing stress) but will certainly add life to your years.

Proper Planning Prevents Poor Performance (and/or a miserable existence)

[pnustedt]

Hey Pnu,

Is there a golfcourse near your future home?

Used to be - it's now 18 paddy fields tho'!

[Simbo]

Any one asking me about living in Thailand. I always tell them, you must have a regular source of income i.e. Pension as well as investments. To come here and live on dwindling capital is folly.

As far as how much it costs to live here. Thats purely up to the individual. If you want to go out everynight to the tourist spots, you will undoubtedly pay more.

During the first couple of years, you will spend more setting up home and the likes, but once you have established yourself, you will not want to be going out everynight. Remember, you are not a young man anymore, so you will slow down, not requiring all the bar scene has to offer.

I've heard 60k and 20k mentioned, both are possible. One good thing about living here, is it is possible to cut your costs, not like the west, where you are lucky to have one third of your income left after stoppages, then VAT takes 17,5% of what is left. Cigarettes, petrol, spirits? need I say more.

[Up2U]

If one does not have an inflation adjusted pension, social security or the like, then you definitely should look to living too long.

This is a reminder for all UK expats (I hope it's not a heart-attack inducing shock): when you leave the UK and start to live in Thailand, your UK pension will be frozen; that is, it will remain fixed. No increase in line with inflation or anything else, even though pensioners in the UK, and expats in the USA and EU will get the increases. There are now UK expats living in South Africa whose UK pension is now £10 per week, because that's what it was when they left the UK.

Wonderful government we have, eh?

Visit:

http://groups.yahoo.com/group/bep/

So, how much more should the government (any government) take off the wage-earners in UK in order to raise the pensions of those living abroad?

Wouldn't win many votes, would it?

The best way of presenting it that I can think of, is that these people are not using the NHS. But then they're notc ontributing, either. Difficult one.

[pnustedt]

Any one asking me about living in Thailand. I always tell them, you must have a regular source of income i.e. Pension as well as investments. To come here and live on dwindling capital is folly.

An alternative is to invest enough of your capital sum in the bond market - whereby you are guaranteed a pre-determined income and your capital is kept in place. I would prefer to do this than buy an annuity or pension, which I believe is an inefficient form of investment and, once purchased, control of your money is lost.

[KevinN]

I have had a few marriages and also s few divorces,I have lived all my working life roaming around the world without a real place to call home, I had places where it was listed as my permanent address and where to send my paychecks and family allotments,but nowhere for me to live with my family.

So as has been mentioned,traveling around has no romance for me, I do not hang around bars and girly joints,I did that for 50+ years, I find plenty to keep me busy with a home and a life for the first time in my life and have no need to roam around some cow pasture hitting a ball and then chasing it just so I can do it all over again.If I want to go fishing,I have a 8 rai lake right in my yard, I can live very easy on 20,000 a month,but the house,car motorcycle and everything is payed for and I do spend extra so I can eat farang food when ever we want,and have to make at least a 375 KM trip to obtain the grocerys to cook it with.

Not everyone has to have a bottle of booze or a golf club in his hand to find contentment. To each his own,,be a ###### of a world if everyone had to do the same things to be happy.

[RDN]

So, how much more should the government (any government) take off the wage-earners in UK in order to raise the pensions of those living abroad?

Wouldn't win many votes, would it?

The best way of presenting it that I can think of, is that these people are not using the NHS. But then they're notc ontributing, either. Difficult one.

About £400 million is what is needed. Not a lot when you consider the money being wasted by this (and previous) UK governments.

Regarding "votes": spot on! Expats are not - by definition - in the country, so do not protest by marching on Downing Street. And most do not bother to vote for many reasons. (Did you know that postal voting forms are sent out one week before the deadline to get them back? Thanks UK government, you really care.)

I did suggest on the "BEP" group ( http://groups.yahoo.com/group/bep ) that we should get ALL expats registered to vote (about 400,000 of us) and promise all those votes to the party that promises to end this discimination against expats.

Unfortunately most of the members of this group are elderly, not too radical and would rather sit and write to their MPs pleading the case rather than get aggressive. And you are dead right about the cost saving to the NHS. We save them about £1 billion each year, but the government says it cannot afford to pay the uprating. Hypocrites. Don't get me going on this subject - it really p1sses me off!!

Edited June 16, 2004 by RDN

[RDN]

An alternative is to invest enough of your capital sum in the bond market - whereby you are guaranteed a pre-determined income and your capital is kept in place. I would prefer to do this than buy an annuity or pension, which I believe is an inefficient form of investment and, once purchased, control of your money is lost.

That's where half my money is - and you can take 5% interest out each year, tax free (UK). Up yours, Gordon Brown

[anono555]

jesus, that 'bob wilde' who wrote this 'article' sounds like the most miserable depressing shit i've ever heard in my life... don't listen to people like that they just want to bring everybody down to the same depths of depression they suffer in their own sad little lives...

why not enjoy your life, stop worrying about this and that and what if and enjoy it while you can get it because there is no point being the richest man in the cemetary... 80,000 baht a month??? what planet is this guy on? thailand is cheap, learn to speak thai, be sensible, don't act like a stupid falang and 8 million baht will last you a lifetime. how the ###### do you think most of the Thais survive in Thailand?

[Bluecat]

To enjoy a decent standard of living, anything less than 2kUSD a month would be constrictive.  Personally, I don't want to be strapped behind a buffalo working the rice fields in my dotage!

What on earth do you spend 2000 Us per month on Boon Mee?

A tractor, maybe?

[mrvietnam2001]

"The" number is 50K a year in USD.

Reach that and if you are able or willing to settle for less then that's a bonus.

What you're willing to settle for and find yourself "having" to settle with is key.

50K is the minumum as far as I'm concerned. I don't care what country you're in.

If you don't plan for that you're in for a rude awakening.

Rgrds

Mr Vietnam

[ghengis]

The financial benefits of living in Thailand are :

• House Prices are Cheaper - allowing a large capital sum to be released when moving to Thailand
  
• Cost of Living is Less
  

Income more, expenses less. Result "Happiness" according to Dickens "Mr. Micawber".

There is a temptation to retire earlied than planned in Thailand. Maybe this temptation should be resisted, since you could come unstuck if you or the Thai government later decide that you cannot live in Thailand.

If you plan to be able to retire in your home country, then if you move to Thailand you could live in relative luxury and always have the option of returning to the old country.

[walker]

Everyone is throwing around magic numbers, from the ridiculous (US$50k/yr) to the sublime (15k baht/mo). I think that the only two posters who "get it" are thaiquila and simbo. They both note that you'll be living somewhere, so attempting to assert cost is an excercise in relativity, not in absolutes. If I have eight million baht/200kUS$/120kBritish pounds/etc, the question is NOT "can I live well in Thailand on that amount?". The question is "where can I live the best on it?" I think most of the posters got onto the wrong track. If the issue is "when should I retire?", then the doomsayers are right with the notion that you should die in the yoke at 97, because you can't know what the future brings, and no amount of money may be enough. Equally right are the folks who are ready to take a long shot risk, hoping that every detail works out, because, ######, you only live once. Me, I believe in moderation in everything, including moderation.

[mrvietnam2001]

Everyone is throwing around magic numbers, from the ridiculous (US$50k/yr)

50K is ridiculous?

My nut used to be multiples of that. As I said, it depends on what you're willing to be forced to live like.

50K is a minimum, unless you enjoy being a prisoner and then making up reasons on who much you enjoy it.

Mr Vietnam

[englishoak]

Ive followed this thread for a while now. The way I see it costs depend on your lifestyle. But I think 20k a month is not possible over a long period of time. Costs will rise and as others mentioned here the same lifestlye is likely to cost 40K in 10 years or so. 8 million seems like a lot but I expect that would be gone in 15 years, 20 at the outside.And thats being very thrifty ALL the time.

I have been here 4 years and during that time I have had my house rented in the UK. Back in 2000 it was fine, 30k was enough. Inflation has seen my costs rise to 35k although this is set off some by the current strength of the pound. I currently spend about 40k and save 0. But when the Pound falls thats going to hurt as costs will probably stay the same.I live in Bangkok by the way.

I have been doing a lot of serious thinking and watching over the past year. Do I sell up in the UK and retire here ? or go back and work for a while longer?

Im 38 so a long way off retirement age. Sure I could bank a very good amount and based on most peoples estimates it would be more than enough.A pension for me is IMO very unlikely by the time i am old enough,either that or it'll begin at 70+. Being here has opened my eyes to the Thai Governments view of Falang and also how the UK view their expats. We are definately alone and likely to become more so as time goes on.

Investing in a business here i've decided is too risky. The World economy is not that rosy and I reckon to need about 60k bht minimum ATM. Allowing for savings and unforseen costs. Airfaires, Health travel etc.

On top of that if you want to set yourself up with a house + car etc it's going to cost another 3-4 mil.

Property here is cheap but so is the standard of housing. 20 years and its had it. Thats another cost to factor in.

At my age I reckon on needing about 30million + to be comfortable for the rest of my life.Bank it live on the bonds & tax free interest.It sounds like an awful lot but that will afford me 0 worries and a very nice life to do pretty much anything I want. And to me thats Freedom.Scraping by as I get older does not appeal.

The short of it is i'm going back to the UK for a few years and bank some money. Thailand will still be here and who knows, if theres a crash here I'll pop back and grab some property.I'll be back for good next time but on my own terms and totally secure, whatever they throw at me.

Anyone thinking about coming here should indeed follow their heart, if thats what you want to do go for it but do the sums first and work on the maximum costing not the cheapest then you will have a breathing space should you have those unforseen costs. Believe me they do happen.

You cant take it with you but going broke before the end is not my idea of happy ever after. Look after number one financialy as no one else is going to.

Good luck to you all and enjoy the dream.

[Boon Mee]

To enjoy a decent standard of living, anything less than 2kUSD a month would be constrictive.  Personally, I don't want to be strapped behind a buffalo working the rice fields in my dotage!

What on earth do you spend 2000 Us per month on Boon Mee?

A tractor, maybe?

I haven't moved back permanently yet so that's a number I've extrapolated from reading here. Plus, seeing what me & the missus will need from our trips to LOS over the last few years.

We'll be living "up-country" but I'd rather err on the side of being too conservative...

[SoCal]

How many people go to Thailand with a lot less than 8 million baht?

The key is to perserve your capital through sound investment.

Depending on interest rates (many forms guaranteed by US) you can make $1,500-2,000/mo off the interest. That is without touching your initial capital, and having it guaranteed.

If on the side, you had enough to purchase a house or condo, then that's that much less you need for living.

Now let's say you're not a total idiot, and you do some side job, like teaching, exporting handicraft, etc. This is all additional money to help you live more of a life like you want.

Maybe someday life in Thailand is expensive, and the govt over there is better, so you move down the road to Burma where it is cheaper?

######, who knows what tomorrow brings?

Funny how you guys scratch your head at a guy who comes penniless when he is 19, and maybe say live your life when you're young, but get all hesitant about a guy who has worked like a dog all his life, has capital, and wants to enjoy himself a bit.

For all he knows he will die at his desk next year. On the up side, he can have a whammy of a funeral with all that cash saved up.

It doesn't matter if your young or old. Live your life. It's the only one you got (Budhist & Hindus excluded.)

[KevinN]

Everyone is throwing around magic numbers, from the ridiculous (US$50k/yr)

50K is ridiculous?

My nut used to be multiples of that. As I said, it depends on what you're willing to be forced to live like.

50K is a minimum, unless you enjoy being a prisoner and then making up reasons on who much you enjoy it.

Mr Vietnam

I haven't read anywhere where the guy said that he will never get any pension money,that means a lot as to the final equation.

$50K minimum is really a very high estimate,as I can live well on half that much and put money in the bank.

The guy said that he has already bought and payed for a house and has figured in the cost of a new car,and his estimated expenses, but he has also only furnished a minimum of info as to what his future income will be or if he never will be able to add any money to his nest egg.

so to keep talking of buying a house and other things that he stated he already has done is ludicrous,and we do not know what it takes to make this man happy,just because a lot of folks find that being able to play golf is a condition of them being able to continue to live,drinking a lot of beer or chasing pussy also being a condition of continued existence,being able to return to the land of birth or to travel around the world while setting in the front 6 rows of an airplane is not a requirement for me to continue to breath and enjoy my few remaining years.

[dutch]

I'm sorry guys,but it is ridiculous to continue to talk about several LIFESTYLES.

It is about the costs of living.

How people fill in the word "living" , is up to them.

So in this thread we can inform each other about our status/plans and we can feel pity or jalours about the others, but disagree is in my humble opinion not valid.

At the end of this year I will be 62 and I will retire.

I worked for 42 years without interuption. 27 years I shared my life with my (Thai) wife. We don't smoke and we don't drink and only the last 4 years we started to play golf.I simply never ,ever had time for play any sport the last 25 years.

I want that lifestyle that me and my wife worked for very hard, to continue.

Our house is ready,our pension funds will come in,inflation corrected and guaranteed by the government.Some extra funds for unexpected circumstances.

Oh,btw when I met my wife 28 years ago,I had NOTHING!

Now I have a son on law school (almost finished but still in need for money ) and a nice outlook for my retirement.(I owe it my wife)

[CMguy]

When someone ask how much is the cost of living in Thailand there are as many answers as there are people answering the question. Having lived in Europe and the U.S. and now Thailand I would say you could safely maintain the same standard of living here on half the amount or less than is required in the U.S. or Europe. If you have any particular vices you can spend money as fast as you can take it out of your pocket but its up to you to budget that based on what you can afford.

[RDN]

Im 38 so a long way off retirement age.

At my age I reckon on needing about 30million + to be comfortable for the rest of my life.Bank it live on the bonds & tax free interest.It sounds like an awful lot but that will afford me 0 worries and a very nice life to do pretty much anything I want. And to me thats Freedom.Scraping by as I get older does not appeal.

I think the factor of (20 to 25)* annual expenditure is exactly right for a nest egg. Once invested, you must get at least 5% interest and (in the UK) you can take 5% interest from some bonds tax free. Of course, the rules may change but for now, it works.

[exp9696]

EMUU ,verry good reply,somebody who keep his brain in his head

I give you promotion

[footfidforfai]

Ive followed this thread for a while now. The way I see it costs depend on your lifestyle. But I think 20k a month is not possible over a long period of time. Costs will rise and as others mentioned here the same lifestlye is likely to cost 40K in 10 years or so. 8 million seems like a lot but I expect that would be gone in 15 years, 20 at the outside.And thats being very thrifty ALL the time.

I have been here 4 years and during that time I have had my house rented in the UK. Back in 2000 it was fine, 30k was enough. Inflation has seen my costs rise to 35k although this is set off some by the current strength of the pound. I currently spend about 40k and save 0. But when the Pound falls thats going to hurt as costs will probably stay the same.I live in Bangkok by the way.

I have been doing a lot of serious thinking and watching over the past year. Do I sell up in the UK and retire here ? or go back and work for a while longer?

Im 38 so a long way off retirement age. Sure I could bank a very good amount and based on most peoples estimates it would be more than enough.A pension for me is IMO very unlikely by the time i am old enough,either that or it'll begin at 70+. Being here has opened my eyes to the Thai Governments view of Falang and also how the UK view their expats. We are definately alone and likely to become more so as time goes on.

Investing in a business here i've decided is too risky. The World economy is not that rosy and I reckon to need about 60k bht minimum ATM. Allowing for savings and unforseen costs. Airfaires, Health travel etc.

On top of that if you want to set yourself up with a house + car etc it's going to cost another 3-4 mil.

Property here is cheap but so is the standard of housing. 20 years and its had it. Thats another cost to factor in.

At my age I reckon on needing about 30million + to be comfortable for the rest of my life.Bank it live on the bonds & tax free interest.It sounds like an awful lot but that will afford me 0 worries and a very nice life to do pretty much anything I want. And to me thats Freedom.Scraping by as I get older does not appeal.

The short of it is i'm going back to the UK for a few years and bank some money. Thailand will still be here and who knows, if theres a crash here I'll pop back and grab some property.I'll be back for good next time but on my own terms and totally secure, whatever they throw at me.

Anyone thinking about coming here should indeed follow their heart, if thats what you want to do go for it but do the sums first and work on the maximum costing not the cheapest then you will have a breathing space should you have those unforseen costs. Believe me they do happen.

You cant take it with you but going broke before the end is not my idea of happy ever after. Look after number one financialy as no one else is going to.

Good luck to you all and enjoy the dream.

This is precisely what I'm doing, my house is on the market rightnow and I've got a 95% mortgage for a newly built house in Bangkok through a Thai bank. I managed to get a job out there as well which should tied me over nicely, although it's a year contract but I'm sure there'll be something else I can do there. I'll be keeping half of my money here in UK and the rest for buying furniture and a car in Thailand, with baby on the way in Sept I reckon my spending would be around 30k-40k a month.