Its cheap, no doubt. Only restriction is the amount you drink. That will determine how much you spend overall 🙂
Having said this other areas of thailand are cheaper, because this city has cottoned onto the fact that 40-50% of the Russian and Australian population travel here. Seriously there are so many tourists. You can eat out at restaurants for 100-120Baht per dish or eat more traditional in a stall for 50baht per plate!
1) The most obvious is to barter, its hard if you haven’t done it before but trust me you need to know and EVERYONE does it. It may be an obvious topic but if you are new to the asian way of life its how they run their payments.
2) Drinks are cheaper from 7eleven and marts compared to bars and shops if you really want a bargain.
3) Try and catch local buses if you want to save more money. They may not go everywhere but if the location is right it will save you some money. A trip into Phuket town was 30baht compared to a taxi for as little as 200.
Be posted for more insightful (to some) tips on saving while travelling the world.