Hey im planning on being in Thailand for 3 months and want to spend a good amount of time in a beach bungalow, where would the best and cheap places to stay. up to 12$ a night sort of thing ????

Something like this sounds good to kids or looks nice in a movie but after a couple weeks of doing this it gets a little boring. If your funds are limited go for a shorter amount of time and spend a little more money. Or borrow more money.

You can not just show up in Thailand and stay 3 months without a proper visa unless you are Thai. Probably get a 60 day tourist visa and extend for one month. This is if you even qualify for a visa. Visa length depends on the country passport you are using. You pay for visas.

For 3 months you must make arrangements with your bank to allow ATM withdrawals overseas. If you intend to use cheap crappy places to stay in you can't just leave your cash stashed in the room somewhere or be walking around with all of your money on your person. Have a back up plan if all of your money is stolen or lost or you actually spend something more than $12.

I don't care for remote areas, maybe when I was a kid it might be cool for a while, but I like supermarkets around, I like movie theaters if I am in a location for a while, I like having a variety of people around where I live. Even Koh Phangan with the full moon parties and drunk kids or kids on dope gets a little tired after a while.
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This forum has a good section on visas. You must identify the passport you will be entering Thailand with.
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Make use of an expensive plane ticket to see some of the rest of Thailand while you are in that area. Don't skip Bangkok it is worth a look. More long distance airlines land at Bangkok anyway.

First thing you have to check on is if you can actually stay in Thailand for 3 months. You will need a visa you pay for. How long you can stay or even if you can visit at all depends on the passport you use to enter Thailand.

Maybe go for a shorter period of time and stay in better places will be better. Or, borrow money for better places. Don't skip a visit to Bangkok. Also, see if you can find some time in your schedule to visit Northern Thailand.

You sound like a kid. Many kids head for Koh Phangan.