In my experience it's possible to live very cheaply anywhere in Thailand: if you hunt around you can find cheap digs, cheap food, cheap drinking, and there's cheap transportation if you want. But your budget will go flying right out the nearest window the minute you walk into a bar and start to monkey around with the bargals. They are experts at getting you to relax and open your wallet and blow your dosh, so bear that in mind.
Some tips I use. Generally when on holiday my wife and I will eat cheaply at breakfast & lunch (just noodle soups & fried rice dishes for a couple of dollars) but will splash out a bit for dinner and have a nice meal.
As I mentioned drinking beer in the bars can become very pricey but you can reduce this by buying cans in the 7-11 shops and drinking them on your balcony or around the pool, also most 7-11s and mini-marts have some seating outside and the “Cheap Charlies” (like me) can buy beers inside and drink them out front. I often prefer this as you watch the interesting people passing by.
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