Bali is not expensive, unless you stay in the top 3 or 4 resorts.
I recommend you stay AWAY from any resort on Kuta beach and definitely DO NOT STAY at the Ritz. It is an overpriced place not close to much. I stayed their last year in a private villa and hated every minute of it. If you like Cancun, then go to Kuta beach. It's a similar vibe. But why fly 24 hours to go to a place you can go to just south of Texas?
Bali is an amazing place, very unique. But you have yo get away from the tourist trap areas that cater to Australian and Japanese package tourists.
I HIGHLY recommend you stay in the Ubud area, which is more in the center of the island. You can still drive to the beach if you want for a day. Ubud is amazing.
Take a look at this short video I shot and produced last year during a trip to Bali. It will give you some ideas:
http://www.infinity-studios.com/travel/Bali.wmv