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The start of a new year is the most popular time to make a resolution or two. For many, those include giving up alcohol for the first 31 days.
This year, 22% of adults are participating in Dry January, five percentage points higher than in previous years, according to a new report by Morning Consult.
“I don’t even want to call it a trend anymore because it has staying power,” said Lindsey Roeschke, author of the report.
Of those taking a break from beer, wine and mixed drinks, most were driven by the health benefits, the research found. 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.
Forgoing alcohol entirely for a month has become a popular way to kick-start better habits. It’s credited for improved sleep, weight loss and overall wellbeing.
But the financial savings are also significant.
How much money you can save
“Your exact savings during Dry January will hinge on your typical drinking patterns and related expenses,” said Douglas Boneparth, a certified financial planner and president and founder of Bone Fide Wealth, a wealth management firm based in New York.
“For some, skipping that occasional glass of wine might free up $50, while for those who regularly go out, the total could climb to $300 or more,” he said.
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Fred Harrington, the CEO of Coupon Mister, a site with money-saving tips, estimates that going entirely alcohol free for the month could save between $300 and $1,000, depending on consumption.
“The savings associated with cutting out alcohol for Dry January can be substantial,” Harrington said. “Even if you’re an occasional 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 cutting out alcohol for the month, according to Morning Consult. Money as a top motivator “ticked up in 2022 when inflation reached its peak,” Roeschke said.
Tracking your baseline spending on alcohol is the best way to figure out how much you’ll save by going dry, advised Boneparth, who is also a member of CNBC’s Financial Advisor Council. The U.S. Department of Health and Human Services’ alcohol spending calculator can also show how much you are spending on alcohol every 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 from a grocery store might run $10 to $15, whereas a single cocktail at a bar could cost $12 to $18.
“Big-city bar prices are often higher than those in small towns and social habits — weekly happy hour, weekend outings — also play a huge role,” Boneparth said.
There could be an additional trickle-down effect from fewer rideshares or food orders and even less of a chance of drunk online shopping.
“It’s not just the money spent on the alcohol itself, it’s all of the ancillary things that come along with that,” said Morning Consult’s Roeschke.
How to put that savings to work
“You can put the money you save by doing Dry January to great use by, say, spending it on a health club membership, a new bike for exercise, savings or a holiday,” Harrington said.
Alternatively, that money could be well spent paying down post-holiday debt.
Most experts also recommend putting any extra cash in an emergency savings fund. Even a few hundred dollars can go a long way to providing a financial cushion when unexpected expenses arise.