According to a new study, Americans could save an average of $3,000 if they quit alcohol for a year.
As inflation remains at a peak of 3. 2%, Americans are looking for tactics to reduce their monthly spending habits, from streaming subscriptions to daily coffee orders. But one thing that many forget to give up in order to save costs is alcohol.
According to Addiction Group, even if you buy the cheapest alcohol, ditching beer or wine consumption can save you an average of $200 to $300 per month. That’s if you drink alcohol every day, which equates to an annual savings of between $2,400 and $3,600.
Another organization, Hello Sunday Morning, estimates that couples who buy about 8 bottles of wine at $20 a week will save $8,320 a year by quitting drinking.
With this kind of money in your pocket at the end of the year, financial experts say you can pay off your debts, save for retirement, or even invest in a lifestyle.
And Josh Michaels, a finance specialist and CEO of private finance site Money4Loans, said the thousands of dollars stored annually are just the tip of the iceberg.
“A user who redirects their savings to a retirement account like a Roth IRA can, with an average annual return of 7 percent, accumulate more than $100,000 in 20 years,” Michaels told Newsweek. “This is a transformative figure, especially for those suffering from monetary insecurity. It may just mean the difference between a retirement under pressure and a comfortable retirement. “
There are also numerous health benefits that you can gain by going sober. Doctors report better mental health and sleep, higher productivity, reduced risk of alcohol-related diseases and overall lower healthcare costs in patients who are sober.
Heavy drinkers who quit alcohol report losing weight. If you look only at the calories in a popular beer, which averages around 150, it’s easy to see why.
Those who drink four beers a night will consume 600 fewer calories per day. That’s 4200 fewer calories in a week, which means those who opt for sobriety can lose at least a pound of fat each week.
So, with all these money savings and health benefits possible, why don’t more Americans ditch the alcohol and embrace sobriety?
According to experts, it depends on the culture and the short-term satisfaction that a drink or two provides.
“While a savings of $3,000 a year is significant, it’s not as tangible as the quick social or mental benefits of drinking,” Michaels said.
Addiction Group estimates that about one in ten Americans has struggled with an alcohol use disorder. However, most Americans don’t give up alcohol at all for other reasons.
It might be a key component of their social life or a way to wind down after work and enjoy dinner with their loved ones.
Conscious beverage company Sunnyside found that even if you cut back by 30 percent, opting for 14 drinks a week out of 20, you can save between $936 and $2,496 a year.
Many drinkers also shop while intoxicated, either online or through an impulsive resolution to eat greasy foods at the end of the night. A 2019 survey found that 79% of drinkers had made at least one online purchase while intoxicated, representing an average of $444 in lost cash during the year.
“Imagine turning your annual expenses on alcohol into a fund that can fund a child’s school education, their trip to the world, or a comfortable retirement,” Michaels said. “Sobriety is not just a fitness option. It’s a difficult monetary strategy. “
Suzanne Blake is a Newsweek reporter based in New York. Her focus is reporting on consumer and social trends, spanning from retail to restaurants and beyond. She is a graduate of UNC Chapel Hill and joined Newsweek in 2023. You can get in touch with Suzanne by emailing [email protected].
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