Thailand is one of the most affordable places in the world for expats to relocate to. But you have to know how to manage your money in the country in order to make the most of your physical or digital cash.
However, before we discuss how to manage your money in Thailand, let's examine the cost of living in the country.
Cost of living in Thailand
When talking about money in Thailand, it's good to know about the overall cost of living. Although the cost of living changes every few years, it's safe to say that—at least according to Numbeo — expats in Thailand spend 49 percent less than those in the United States. When we look at the spending power of money in Bangkok versus New York City, there is a 141.8 percent difference in favor of Bangkok. This makes Thailand a popular choice for remote workers trying to stretch their dollars or retirees on a fixed income.
Read also Retiring in Thailand
Banking in Thailand
If you're going to stay in the country for a long time, you should open a Thai bank account. This makes it easier to pay bills, collect a pay check, and transfer money into and out of the country.
In general, you have two types of bank accounts in Thailand: savings accounts and current accounts. With a savings account, you can save extra money for emergencies, long term purchases, or vacations. With a current account, this is where you pay your bills from and receive money into.
To open a bank account in Thailand, you need to visit a local bank branch with the following documents:
- Passport;
- Long-term visa;
- Thai work permit (or your name registered in the yellow house book known as a tabien baan);
- Proof of residence;
- Initial deposit (amount varies by bank).
Expats in Thailand usually choose one of the following banks to open an account in:
Read also Accommodation in Thailand
Managing money in Thailand
Opening a bank account in Thailand is only the first step in effectively managing your money. You also need to know how and where to save money, make transactions, invest for the future, and maintain a budget.
Saving money is important no matter where you live, but it's crucial as an expat in Thailand. You need an emergency fund in case you get injured or sick and don't have expat health insurance. You also have to show a certain amount in your bank account to qualify for annual long-term Thai visas.
Making transactions will be part of your everyday life in Thailand. You can pay for goods and services with cash, an ATM card, a Thai credit card, by QR code through your bank's mobile app, or with a bank transfer.
Investing is also something to consider when managing your money in Thailand. You can invest in either a brokerage account in your home country or through your Thai bank. Thai banks offer a variety of ways for expats to invest in the country, both for the short and long term.
Budgeting your money is important while living in Thailand. This way, you can see where you're spending your money, how to save more of it, and what you have left over for investing.
Read also Starting a business in Thailand
Withdrawing money from ATMs in Thailand
ATMs in Thailand work much like they do elsewhere in the world. You can use your Thai or home country debit card to withdraw money from an ATM. If you use your Thai debit card, you won't be charged as long as you withdraw money from an ATM that belongs to your bank in the province in which you set up your account. If you use another bank's ATM or your bank's ATM but in a different province, you will pay a THB 10 to THB 15 fee.
If you use your home country's debit card to withdraw money from an ATM in Thailand, you have to pay a THB 220 fee on top of what your home bank charges for international withdrawals and/or takes in exchange rate fees.
Exchanging money in Thailand
One of the best places to exchange money in Thailand is at SuperRich's Asok branch in Bangkok. SuperRich consistently gives the best exchange rates compared to other services and banks. So, avoid exchanging all your money at the airport kiosk and do it at SuperRich instead.
Sending money to Thailand
If you have a Thai bank account, you can easily send money into the country using an international money transfer service like Wise. Wise is popular with expats in Thailand because it offers the best exchange rates and transparent fees. You can also open a borderless account with Wise and use it to pay for goods and services.
You can also transfer money into the country using a brick-and-mortar bank, although this usually takes a lot longer than online transfers. However, it is more cost-effective for international transfers over US$10,000. Western Union is another option, but it is good only for financial emergencies because it takes a percentage of the mid-market exchange rate and charges a fee on top of that.
Money and Thai culture
Most parts of Asia place a certain significance on money that's just not felt in the West — and Thailand is no different. Money is used as birthday gifts, in wedding ceremonies as dowry, on special holidays, and is even an important part of religion. But money matters are also talked about openly, such as how much things cost, how much you make, and how much you have in your savings.
