When you want to save money, you need to look at every aspect of your life and spot any unnecessary spending. Alcohol spending is a great choice to cut out or at least minimise, since for most people it’s not a must-have item – it’s just a small luxury to enjoy every now and then.
But are the savings really that big? How much does alcohol cost and how much money could be saved by not drinking? Let’s discuss.
The Average Cost of Drinking
The Australian Bureau of Statistics reported that in 2015-2016, the average Australian household was spending $32 a week on alcoholic beverages. That’s $32 that could be going into savings each week or that could be spent on the occasional splurge meal.
Don’t forget that if you’re someone who goes out to drink at clubs and pubs more than the average person, your costs will be higher still. Consider how much a single drink costs on a night out and come up with your own average weekly spending on alcohol.
Seeing friends and spending time with them is great, but try planning cheaper activities that will keep you all just as entertained without straining anyone’s budget.
The Other Costs of Drinking
A night out will cost you money as you buy yourself drinks, but don’t forget that there are other costs too. There’s the cover fee that some venues will charge, the hot chips and kebabs you crave throughout the night, the rideshare home, the expensive hangover meal the next day… it all adds up. The money you spend on alcohol isn’t the only money you could save if you quit drinking.
Overpriced Events
Putting on some fancy new duds and going to an event is exciting but costly, especially for drinkers. Sporting events, Oktoberfest events, National Beer Day or National Wine Day events, and festivals will all overcharge you for your drinks. While some of these events aren’t something teetotallers will enjoy (National Wine Day isn’t that fun without a glass of wine), some of them can be enjoyed without a drink, which can save you a lot of money.
What You Could Purchase Instead
For those already trying to build savings, the money saved by not drinking is already worth it. But if you’re not sure if it’s worth it, consider what else you could spend your money on.
If you’re considering quitting drinking to get healthier, the money you save could fund your gym membership. You could put the funds towards a holiday. You could relax with a massage and address your aching back instead of ignoring it. You could do whatever you like if you quit drinking and save money.
If you’re saving for an investment and need a quick boost, a short-term loan might be able to help you out.
Everything in Moderation
With everything considered, quitting alcohol entirely isn’t the solution that works for everyone. A lot of people still enjoy a glass of wine at fancy dinners with family or a beer at a celebratory afternoon with friends.
What it comes down to is cutting down and enjoying alcohol in moderation. Even if you don’t cut down 100% of your alcohol spending, you can cut down some of it. Either drink less in general or consider going out less and hosting friends and drinking at home instead; that way, you’re paying a much lower price for the same drinks.
Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.