I lived in Chiang Mai for years. You can live there on this budget as long
as you are willing to hunker down and do your own thing, not party and
go on trips, etc. I've lived on $300 per month in drastic situations. It
won't be easy to live simple there because of all the distraction and
temptation, but you can do it.
Tips on Eating Cheap
Stick to the restaurants locals eat at and you'll never have to pay more
than 30-35 baht per meal. Look where the locals in your neighborhood eat.
Little dinghy places with plastic tables and chairs and lots of customers
(this means the food is good and, even more important, fresh). Even at
3 meals per day, that's very cheap.
Chiang Mai has a few places you can eat for less than 10baht and at
least one place you can get a bowl of noodle soup for 3 baht. Once or
twice a week, go out somewhere nice and watch your spending just so
you're not always restricting yourself. Even at a nicer place outside of
the tourist areas you can get a great meal for 45 - 90 baht.
Tips on Drinking Cheap
Drink where the Thais drink. Alway ask if they have a "promotion" (mee
promotion mai?) - they always do - and they'll probably sell you 3 large
bottles of Thai beer and an ice bucket for a discounted price. It's been
a while, but I think it's usually 120 - 200 baht. 300 tops. Or, if you go
out to a club, bring your own bottle of whiskey and just pay for mixers
and ice.
Even cheaper is a bottle of Sangsum whiskey from the local 7-11 drunk
at home (or the curb of the 7-11 i guess lol), but I'm a social butterfly, so...
Tips on Cheap Rent
If you get outside of the center and stay in an apartment building where
locals live, 2000 - 2500 baht per month in rent is very doable. I've even
seen them 1000 - 1500. It won't be the nicest place, but there are
plenty out there.
I paid 2000 for my apartment for years. It was a bit older and dirty but
there was a Western-style toilet and a restaurant, bar, and internet
cafe downstairs. Electric was extra. I was the only foreigner in the
entire neighborhood and it was a 12-story building full of Thai university
students. I had the time of my life and partied all night in the lobby with
some of the best friends I've ever had on a nightly basis. I ruined my
liver and sometimes didn't spend a dime to do so as we all shared
everything with each other.
The building was open air in part of the lobby, with a courtyard area,
and we'd sit around and barbecue chicken, steak, pork, shrimp, and
squid while getting wasted. Don't know what they were paying at the
markets for the meat, but that's probably a real cheap way to eat too,
and you can get a little barbecue or an electric cooker from Tesco Lotus.
Tips on Cheap Transport
You'll probably be outside of the center, so you'll want to get a
motorbike too (a bicycle at the very least and only if you're in a busy
commercial area where everything is close). About 2000 baht per month
from the right shop for the motorbike.
Seems like another expense, but it's worth what you'll save on tuk tuk
rides, and the convenience of having the entire city at your fingertips is
huge. Even if you save your tuk tuk rides for when you absolutely need
them, it'll probably cost more. Shit just comes up that you absolutely
have to go buy, find, or take care of when getting settled into a foreign
country.
A couple more things to think about:
-You'll need to have money for a deposit or first/last month rent when
you move in.
-budget for your visa runs or you might end up stuck without a visa like
I did for 2 years lol not fun running from cops in Thailand
-I won't tell you not to go live your adventure, but please please get an
emergency fund together first so you can fly out if needed, pay off the
police, or replace a motorbike if it's stolen or wrecked. Shit happens
over there, so keep a shovel ready. $2-$3K should be enough. $1K at
the least.
-Learn Thai. People will treat you better. Befriend you. Rip you off
less. I sometimes even got the "Thai price" at local attractions for my
efforts, and your Thai friends will be your biggest asset in getting things
done cheaper and finding out where the cheapest venues are.
You don't need to pay for lessons if you want to save the money.
Buy a book and some notecards. Add 10 words and 10 phrases to your
cards every day and memorize them. Test yourself constantly, and sit
down with a patient Thai friend to have them say the word for you so
you can listen for pronunciation.
Go in a corner and memorize that. have them test and correct you. Go
in a corner again. Have them test you again. Do this every single day,
pulling them out throughout the day to study, and have another person
test you at night to see make sure you are still saying them right.
Finding people with the time to do that for you is not difficult. Time is
different in Thailand. I recommend just asking someone who works in
your regular restaurant or bar. They always overstaff, so people are
just sitting around, bored and with nothing to do.
Take lessons later on when you have money.
Finally, your two greatest strengths to making it through life in Thailand
with your liver, your wallet, and your insanity intact are productivity and
self-discipline. Take a proactive approach to making both of these
priorities in your life and you can live a great life for cheap while getting
a lot done!
Live your adventure, man. You won't regret it, but there may be times you
regret the way you did it, so be sure to maintain that focus and not let it
slip through your fingers or go too far down the rabbit hole.
Good luck!
EDIT: I just returned last November 2011. These prices are pretty current.