How Much Can You Save By Cutting Out Alcohol? The Answer May Surprise You

Dry January is not a recent phenomenon. While social media and the rise of wellness culture have likely contributed to the trend of not drinking during the first month of the year, the Federal Reserve has noticed this pattern for several decades. January habitually has the most-pronounced downturn in alcoholic beverage sales, according to data from the U.S. Federal Reserve.

What began as Dry January appears to have staying power, with more and more people making long-term departures from alcohol consumption. Aside from its cancer-causing, sleep-depriving, ex-texting, hangxiety-inducing properties, alcohol is also a drain on your bank account. Removing booze from your rotation can potentially save you a lot of money. In fact, it was the third most popular reason for adults participating in Dry January this year, according to a new report from Morning Consult. But just how much money could you save by cutting out alcohol?

Key Takeaways

• While it gained traction through social media and wellness culture, the Federal Reserve has observed a consistent dip in alcohol sales every January, showing this trend has been around for decades.
• Going dry can save you anywhere from $50 to a few hundred dollars in just one month, depending on your habits and the cost of living in your area.
• Being intentional with your savings can be more motivation to stay dry. Track how much you save and put it into a separate account as a visual reminder.

How Much Can You Save?

In 2021, the most recent year in which data is available, Americans of drinking age consumed an average of 2.51 gallons of ethanol, equivalent to 535.5 standard drinks per year, according to the National Institute on Alcohol Abuse and Alcoholism.

The average price of an alcoholic beverage in the U.S. is about $1.81, according to the Fed; 535.5 of these would run you about $969.25. And that’s assuming you’re not doing the bulk of your drinking in bars and restaurants, where a drink will cost you considerably more than average.

Note

Everyone is different—for some, going dry may only mean skipping that bottle of wine with dinner every few weeks, freeing up some $50 per month. However, for more regular, social drinkers, even a month off can save you upwards of $300. 

There’s also a secondary layer of saving opportunity from the trickle-down spending moments that drinking often yields: rideshares and food orders. You may notice that you’re saving more than you expected by missing the ancillary expenses that come along with partying. 

Tracking—and Utilizing—Your Savings

Following your baseline spending on alcohol is the best way to figure out how much you’ll save while going dry. Some budgeting apps separate food and drink purchases for you; otherwise, a quick search of your favorite haunts in your banking app should yield a solid tally of your monthly alcohol expenditures. Don’t forget to factor in your Ubers and DoorDashes! 

Once you’ve identified how much you can expect to save in a month, you should think of a great way to use it. Perhaps you treat yourself to a nice dinner or pad your emergency savings account a bit more. You could also make an effort to put an equivalent amount into a high-yield savings account or retirement savings account. 

The Bottom Line

Alongside many physical and emotional perks, there are some very enticing financial benefits to cutting out alcohol. Depending on your habits, going dry can save you several hundred dollars over a few weeks. It’s an investment in yourself in many ways.