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The beginning of a new year is the most popular time to make a resolution or two. For many, this includes giving up alcohol for the first 31 days.
This year, 22% of adults are participating in Dry January, up five percentage points from previous years, according to a new report from Morning Consult.
“I don't even want to call it a trend anymore because it has staying power,” said Lindsey Roeschke, the report's author.
The research found that of those who took a break from beer, wine and mixed drinks, the majority were driven by the health benefits. Some adults may be particularly motivated by the U.S. Surgeon General's recent warning that even small amounts of alcohol can cause cancer, Roeschke said.
Giving up alcohol completely for a month has become a popular way to start better habits. It is credited with improving sleep, weight loss, and overall well-being.
But the financial savings are also significant.
How much money can you save?
“Your exact savings during Dry January will depend on your typical drinking patterns and related spending,” said Douglas Boneparth, certified financial planner and president and founder of Bone Fide Wealth, a New York-based wealth management firm.
“For some, skipping that occasional glass of wine could free up $50, while for those who go out regularly, the total could rise to $300 or more,” he said.
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Fred Harrington, CEO of Coupon Mister, a site with money-saving tips, estimates that completely stopping drinking alcohol for a month could save between $300 and $1,000, depending on consumption.
“The savings associated with eliminating alcohol during dry January can be substantial,” Harrington said. “Even if you're a casual drinker, you'll see a noticeable difference in your spending by giving up alcohol for a month.”
In fact, saving money was the third most popular reason for quitting alcohol for the month, according to Morning Consult. Money as the main motivator “increased in 2022, when inflation peaked,” Roeschke said.
Tracking your initial spending on alcohol is the best way to estimate how much you'll save if you go dry, advised Boneparth, who is also a member of CNBC's Financial Advisory Board. The U.S. Department of Health and Human Services' alcohol spending calculator can also show how much you spend on alcohol each week, month, or year.
A lot also depends on what you drink and where you live, Boneparth said. For example, a six-pack of beer at a supermarket may cost between $10 and $15, while a single cocktail at a bar may cost between $12 and $18.
“Bar prices in big cities tend to be higher than those in small towns, and social habits (weekly happy hour, weekend outings) also play a big role,” Boneparth said.
There could be an additional trickle-down effect of reduced carpooling or food ordering and even fewer chances of drunk online shopping.
“It's not just about the money spent on the alcohol itself, but all the ancillary things that come with it,” the Morning Consult analyst said. Roeschke.
How to put those savings to work
“You can put the money you save by doing Dry January to great use, spending it on, for example, a gym membership, a new exercise bike, savings or a vacation,” Harrington said.
Alternatively, that money could be well spent paying off post-vacation debt.
Most experts also recommend putting extra money into an emergency savings fund. Even a few hundred dollars can go a long way in providing a financial cushion when unexpected expenses arise.
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