WHAT I just gave my girl my ATM card, why didn't they tell me earlier.

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If their financial skills are so poor, how do they live here on 9,000 baht per month when most of us would starve to death on less than 5-10x that amount?

Speak for yourself.

Financial management is all about how much you spend, not how much you make.

Try telling that to someone making $1 a day. No matter how frugal they are with that dollar, sooner or later they're going to find themselves in financial trouble.,.,

A very common example of going to the extreme to make a point. What major labor group in Thailand makes a dollar a day?

I'm not referring to abject cases of poverty, I'm referring to the average Thai laborer and above.

I took a 95% cut in salary to move to Thailand, and made about 10,000 baht a month here during my first year--exactly the wage of entry-level workers who just graduated from college or university. I had no trouble living within my means.

I again reiterate: it's not how much you make; it's how much you spend that reveals your ability to manage finances.

As to needing large reserves of cash, the Thais have quite a good system of safety nets among friends and relatives for meeting sudden cash needs without resorting to credit card or bank debt.

Those who get into deep bank/card debt are those who consciously choose to do so. They've decided to break out of the old ways and do it like the West does (mistake).

Therein lies the problem expressed in the OP.

I couldn't of explained it better myself...

I tell my wife several times a quarter about how much she tends to spend,

compared to how much we make, which is fortunately better each year,

but it never appears to be enough, because....

she's always spending more.

Thai's can't normally go more than a couple of Km without dishing out some cash for something they could of brought from home.

It's like they wish to show off, that they have cash to spend,

and in the process they support the street vendors wherever they go.

I don't know anyone who makes a dollar a day, these days.

Our labor won't get out of bed or off the phone for less than $17 a day,

and if it's a holiday...and we all know how many holidays Thailand has.

Then it's even more cost for labor.

This $17 sounds small, but this is after we pay for their rooms,

and feed them everyday.

Plus they know how to eat where they work,

and if they eat out, they eat small,

while still managing to distribute their free cash along the trip.

But what they all lack is Money management programs that are readily available.

They would never consider using a computer and program to manage their money.

Computer are for games & e-mail, that's about it.

When I first came here in 2000, all the local knew about internet was e-mail,

now they've graduated to social media, and they think they are advanced or advancing into a modern society.

Jeez...

What actually happens here to people who get themselves into an insurmountable amount of personal debt?

It happened to a friend's friend in the UK, due solely to a totally irresponsible lifestyle, but all he had to do was declare himself bankrupt in the end. Sure it curtailed his extravagances so he has had to adjust. but no 'punishment' as such and soon the debts will have been written off anyway.( ps he knew full well what he was doing when he went into it )

Is it the same in other countries?? Is it the same in Thailand?? Can you get banged up here for getting in to debt, or what?

What actually happens here to people who get themselves into an insurmountable amount of personal debt?

It happened to a friend's friend in the UK, due solely to a totally irresponsible lifestyle, but all he had to do was declare himself bankrupt in the end. Sure it curtailed his extravagances so he has had to adjust. but no 'punishment' as such and soon the debts will have been written off anyway.( ps he knew full well what he was doing when he went into it )

Is it the same in other countries?? Is it the same in Thailand?? Can you get banged up here for getting in to debt, or what?

,,,sorry for double post I don't know what happened...

5555 hillarious ,

party long and hard when have money

starve the next week when money all gone

saving for rainy day not in thai dictionary

What actually happens here to people who get themselves into an insurmountable amount of personal debt?

It happened to a friend's friend in the UK, due solely to a totally irresponsible lifestyle, but all he had to do was declare himself bankrupt in the end. Sure it curtailed his extravagances so he has had to adjust. but no 'punishment' as such and soon the debts will have been written off anyway.( ps he knew full well what he was doing when he went into it )

Is it the same in other countries?? Is it the same in Thailand?? Can you get banged up here for getting in to debt, or what?

all depends who the borrower borrows from

defaulting on debts from some lenders will result in death

Understood ... but what if it's from formal lenders? And anyway would informal borrowing/lending show up in the statistics?

What actually happens here to people who get themselves into an insurmountable amount of personal debt?

It happened to a friend's friend in the UK, due solely to a totally irresponsible lifestyle, but all he had to do was declare himself bankrupt in the end.

They and their families will be under intense pressure to sell assets, especially land and will have to sell it cheap. If they don't have assets they may end up working in a bar or sending their daughter off to a bar or even going into sex work overseas. Other options are selling YB or something else criminal.

Oh dear, thanks jj you paint a pretty depressing picture ... makes me wish I hadn't asked the queston

People continually complain on here about so called 'Thai bashing' - is this article not 'Thai bashing' and thus encouraging such behaviour ?

I once tried to explain to my wife who has a hair salon, and a shop the difference between,profit,turnover and outlay on products and suggested she keep a book so she could actually see what money [profit ] she was making,her reply,Kun kit mak'- you think too much,i explained i had had a succesful buisness in Aus,and this was vital to understand how it was all going- reply 'this thailand ,different flom Austlia", after that i gave up,and of course she is from a wealthy thai -chinese background and only got with me cos i hansum man,like all the rest of you chaps.

its called the" if you got it, spend it" ( and borrow more) system

... three groups of people most at risk in piling up on debt were students, low-income people, and farmers.

What do all these people not have in common? Money.

its called the" if you got it, spend it" ( and borrow more) system

Personal budgetary skills are evident the first time you get stuck in a traffic jam in Bkk on the last Friday of the month. Never understood the urge to blow the whole lot the first Friday you get it.

I don't know about farmers but students and low income people are a no brainer for who gets into debt just about anywhere. There is a lot of talk and a couple of percentage numbers were thrown in but this sounds like loose junk rather than a comprehensive study.

it has been official since first chinese merchants came to thailand to deal with business. several centuries ago..................

on the other hand i love it that a large LEO is 52 thb (in my local shop) and when i buy 4 at once i only pay 200 ;-)

edit: large leo.

Before you all do too much Thai bashing you need to look at "yourselfs"

Lets take UK 2013 fugures:

Household debt in the UK has reached a record level, according to figures from the Bank of England.

Individuals now owe a total of £1.43 trillion

On average, that means each adult in the UK owes £28,489,

The UKs Total Debt as a % GDP is 507% !!! in 2011 - #2 in the world!!

2nd only to Japan

The ratio of debt to household income in the UK is 140%

Approx 98% of GDP

Yes Thailands Houshold Debt -GDP has risen to 77% at an alarming Rate

But people in Glass Houses ..............

Was that you defending Thais on their driving, on a thread yesterday ? ("HUH, its the same all over the world")

If their financial skills are so poor, how do they live here on 9,000 baht per month when most of us would starve to death on less than 5-10x that amount?

Speak for yourself.

Financial management is all about how much you spend, not how much you make.

That's exactly his point.

Sent from my iPhone using Thaivisa Connect Thailand

We are all slaves of debit! Whatever they say, Thai people or not we all have financial problems. It is not about your "managment skills", for instance Asia culture know much better how live their lives in a budget. I'm just another westerner and I can assure you, this is true!

I disagree with the OP.

My wife manages to spend my money very well.

If their financial skills are so poor, how do they live here on 9,000 baht per month when most of us would starve to death on less than 5-10x that amount?

Speak for yourself.

Financial management is all about how much you spend, not how much you make.

That's exactly his point.

Sent from my iPhone using Thaivisa Connect Thailand

I was referring to the last half of his assertion. No, he is not accurately speaking for even most of us, I dare say. Thousands of expats are making below the financial threshold he postulates, and they/we do just fine.

some years back i met a girl who had borrowed 250,000 baht and couldnt pay back the lender .

i asked her what did you do with the money ?

she replied' on parties '

If their financial skills are so poor, how do they live here on 9,000 baht per month when most of us would starve to death on less than 5-10x that amount?

easy,

they have 2 to 4 days off in one month, so not so much time go out and spend money

they don't have to pay overpriced farang prices

they have free medical asistance

they use to pay around 2500 thb for the room

they don't have to go to make visa run or pay an education visa course + 2000 thb each 3 months

they eat rice 3 times a day and they travel around by bus or low engine motorcycle

otherwise nowadays even the less skilled thai workers get over 9000 thb a month, to tell the truth I have known many thais with normal jobs like spray painter or hotel workers who get over 20000 thb a month

If their financial skills are so poor, how do they live here on 9,000 baht per month when most of us would starve to death on less than 5-10x that amount?

Speak for yourself.

Financial management is all about how much you spend, not how much you make.

That's exactly his point.

Sent from my iPhone using Thaivisa Connect Thailand

I was referring to the last half of his assertion. No, he is not accurately speaking for even most of us, I dare say. Thousands of expats are making below the financial threshold he postulates, and they/we do just fine.

Thousands of expats are making 9,000 baht a month?

Sent from my iPhone using Thaivisa Connect Thailand

Dud, sorry.

Lastly, Mr. Ratchapol Laovanitch, the Managing Director for Miracle Creation also stated that the media should play a more important role in educating Thai people on how to manage their finances................................................................by making a TV programme that the poor people can watch on their newly aqcquired 42 inch smart TVs.

These people don't watch TV, they are students, poor people and farmers don't forget.

But it is available for download via a Government Ap so they can watch it on their iPhones or any android based Smart Phone.

We are all slaves of debit! Whatever they say, Thai people or not we all have financial problems. It is not about your "managment skills", for instance Asia culture know much better how live their lives in a budget. I'm just another westerner and I can assure you, this is true!

Rubbish, people fall into the same trap everywhere, Asian culture is no different.

People all over Asia are increasing their personal debt even though a lot of salaries have risen significantly over the past 10 years,, why? If you are correct why has this increase in wealth not resulted in huge amounts of savings and why is the debt increasing so fast?

Simple, they get more money, get a taste of a bette life (or what they are told is a better life), they then watch the media, accept the credit cards and spend on stuff they never had before but now think they need.

I have worked in Asia for many years and seen this happening very rapidly,, China is supposed to be a communist country but the major cities are full of greed (and iPhones)

To be honest, if the Thais were savvy money wise, we all could just as well move to China, boring. Let them have their bubble and when it bursts, buy baby, buy !

Now that is why land is so high in Thailand all are trying to have a way to pay off their debt