Check out this website, it might help you out for your 1st time visit to Bali: www.couchsurfing.com
It offers travellors a chance to find a place to stay for a few days, make some friends and learn more about the country. The forum provides a lot of information about where you can get cheap accomodation, or meet up with fellow travellors as well. One of the post on possible cheap accomodation:
http://www.couchsurfing.com/group_read.html?gid=1979&post=2500277There are cheaper places too if you're simply just looking for a bed to sleep in, can ask around Poppies Lane 1 & 2, when you get there.
This website give you updates on the Bali surf condition:
www.baliwaves.com/Loads of aussies and other surfers in Bali all the time. If you hang out at the same spot for 2-3days, you'll definately make friends. Everyone is very friendly, especially if you're a fellow surfer. Rent a bike (with a board rack) at abt 35,000idr a day and you can explore all the less crowded surf spots too. June - August is the peak season, so it might get packed and accomodation might be a little more pricey too.
Most of the backpackers and surfers stay around poppies lane 1 and 2, which is adjacent to Jl Legian. It's close enough to the beach (Legian, Padma, Double Six) eating places and clubs/pubs. If you eat Bakso (a meatballs and noodle dish) by the beach, it's about 7,000idr per bowl. Nasi Campur/Nasi Padang is ncie and cheap too.
If you wanna get away from the crowd, you can also stay along the road to Uluwatu. But i'm not sure how much those places cost. From Padang Padang all the way to Bingin, Balangan and Uluwatu, there are accomodation available, you would need a bike to get there though.
I spent about Aud$700 in 20 days. This includes room (100,000idr per night), scooter rental, board rental, internet cafe, alcohol & loads of partying, nice restaurants and some shopping. You're a guy, I'm sure you can survive on less.
Have fun!