New Year, New Habits: The Financial Benefits of Dry January
As the calendar flips to a new year, many people make resolutions to improve their lives. One popular trend is Dry January, where individuals abstain from alcohol for the entire month. According to a recent report, 22% of adults are participating in Dry January this year, a five percentage point increase from previous years.
Health Benefits Drive Participation
The primary motivation for taking a break from beer, wine, and mixed drinks is the health benefits. The U.S. Surgeon General’s warning about the cancer risks associated with even small amounts of alcohol has likely contributed to the increase in participation. Forgoing alcohol for a month can lead to improved sleep, weight loss, and overall wellbeing.
Significant Financial Savings
In addition to the health benefits, Dry January can also have a significant impact on one’s finances. The amount saved will depend on individual drinking habits and related expenses. Certified financial planner Douglas Boneparth estimates that skipping the occasional glass of wine might free up $50, while regular social drinkers could save $300 or more.
Estimating Your Savings
To determine how much you can save, track your baseline spending on alcohol. The U.S. Department of Health and Human Services’ alcohol spending calculator can also provide an estimate of your weekly, monthly, or yearly spending. Factors such as the type of drink, location, and social habits all play a role in determining your savings.
The Trickle-Down Effect
The financial benefits of Dry January extend beyond just the cost of the alcohol itself. Fewer rideshares, food orders, and reduced impulse purchases can all contribute to additional savings. This money can be put to good use by investing in a health club membership, a new bike, or paying down post-holiday debt.
Making the Most of Your Savings
Experts recommend putting any extra cash into an emergency savings fund. Even a few hundred dollars can provide a financial cushion when unexpected expenses arise. By making the most of your Dry January savings, you can set yourself up for financial success in the new year.
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