"Prices are going up a lot in Thailand", said my wife. "We've got to be more careful."

In March 2003, we checked our expenses carefully. But prices have gone up since March 2001 when we last did our budget and so we have changed a few things in our lifestyle. We still live in a very nice apartment in the same apartment block but we changed to a smaller one, saving nearly 2000 baht per month. This made electricity cheaper, too. But schooling for my wife is more expensive. International calls remain the same. My Internet charges have gone up - using the PC more, for work. But health insurance has not changed as we have no-claims discounts. And we got one more mobile - I wanted one, too.

Very little changes to basics since 2001, as you can see. True to my promise to myself, our basic expenses do not exceed my monthly pension of 27,200. But they are not far away! We had some luck by changing to a smaller flat, but other things increased. One thing we shall be doing is learning how to speak computer-to-computer internationally - much cheaper, apparently.

But what about extras? Any changes there? Yes, some. Food has gone up in shops and restaurants and so we spend more. Household expenses: Cleaning materials etc. cost much more. But clothes have stayed the same - we still buy on the street! And we have decided to give up holidays in Thai seaside resorts - we no longer like these places. And our personal allowances and expenses on miscellaneous items and entertainment have gone up. As well - it shows that daily expenses are increasing. You need more money in your pocket for incidentals.

So: in two years, an increase of roughly 10% per year in Thailand. Not too bad, but 10% per year means the cost of living doubles in seven years! But there are things you can do to cut expenses. We no longer employ a maid. My wife bought a washing machine and does all the ironing and washing and housecleaning herself. We look out for promotional deals, like the cheaper prices on offer now on some Internet Server companies. We no longer take holidays away from home, preferring to stay in Bangkok. We spend more time at home and eat in more often.

We have developed a 'nose' for a bargain. We note that there are good deals in super-and hyper-markets as competition between them hots up. And we buy a lot of foodstuff in local markets, where vegetables and fruit are cheaper.

Could we live more cheaply? Yes - we could cut out a few things - I ought to stop smoking, for example. But neither of us drinks alcohol - and if you drink in Thailand it adds a lot to your monthly bills.

Do we have still have a good life? Yes, in general. We like our apartment, we eat well, and cover our health expenses with insurance, as everyone should. But like everybody, we'd like to have the same life but pay less for it! Nevertheless, Bangkok is still cheap and very good value - try London or Tokyo or Zurich if you don't believe me.

Bob Wilde is a freelance writer, teacher, translator, proofreader and report editor who has been living in and associated with Thailand for some 27 years. He welcomes comments on his articles and all aspects of living in the Kingdom.

Bob Wilde is a freelance writer, teacher, translator, proofreader and report editor who has been living in and associated with Thailand for some 27 years. He welcomes comments on his articles and all aspects of living in the Kingdom.