“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.”
– Will Rogers
It’s not just your health that alcohol impacts, it’s your wallet too. Those drinks at the bar, bottles of wine at dinner, they all add up.
And it’s not just the cost of the drink itself. There are often other associated costs, think taxis, late-night snacks, even missed workdays, or lost productivity the next day.
And it’s not just the cost of the drink itself. There are often other associated costs, think taxis, late-night snacks, even missed workdays, or lost productivity the next day.
Cutting back on alcohol can free up a surprising amount of money. Money that can be redirected towards paying off debts, saving for the future, or investing in experiences or opportunities that bring you genuine joy and fulfillment.
Cutting back on alcohol can free up a surprising amount of money. Money that can be redirected towards paying off debts, saving for the future, or investing in experiences or opportunities that bring you genuine joy and fulfillment.
The True Cost of Alcohol
The costs of alcohol aren’t just limited to the price tag on the bottle or the tab at the end of the night. It’s much more than that.
First, there’s the obvious, the price of the drinks themselves. A few dollars for a beer, a bit more for a glass of wine, or a cocktail. Doesn’t seem like much at the time, right?
But then there are the additional costs incurred while drinking. Dining out because you don’t feel like cooking. Taking a cab because you can’t drive. Buying snacks on the way home. It all adds up.
But wait, there’s more. The indirect costs of alcohol can be even more significant. Health issues caused by excessive drinking can lead to medical bills and lower productivity at work, sometimes even job loss. Not to mention the toll it takes on your mental health and relationships.
In the U.S., the economic burden of alcohol misuse is staggering, amounting to $249 billion in 2010, according to the Centers for Disease Control and Prevention. Nearly 77% of these costs were due to binge drinking.
But wait, there’s more. The indirect costs of alcohol can be even more significant. Health issues caused by excessive drinking can lead to medical bills and lower productivity at work, sometimes even job loss. Not to mention the toll it takes on your mental health and relationships.
Every small change counts. You have the power to take control of your finances and your life.
The True Cost of Alcohol
The concept of opportunity cost refers to the value of the next best alternative that must be foregone when you make a choice. Simply put, it’s what you give up when you decide to spend your time, energy, or money on something.
Now, let’s relate this to alcohol. When you spend money on alcohol, that’s money you can’t spend on something else, a gym membership, a cooking class, a weekend getaway, or investing in your future.
Now, let’s relate this to alcohol. When you spend money on alcohol, that’s money you can’t spend on something else, a gym membership, a cooking class, a weekend getaway, or investing in your future.
And there are also lost earnings potential and foregone experiences to consider. Hangovers can lead to missed workdays or lower productivity, which could ultimately impact your career progression and earnings potential. Alcohol consumption can also lead to missed opportunities for personal growth, learning, or spending quality time with loved ones.
Every dollar spent on alcohol is a dollar not spent on something else that could bring you more happiness, fulfillment, or financial security in the long run.
Every dollar spent on alcohol is a dollar not spent on something else that could bring you more happiness, fulfillment, or financial security in the long run.
Tips for Managing Money Without Alcohol
Managing money without the expense of alcohol can seem daunting, but it’s entirely doable, and rewarding. Here are some practical tips:
Set a budget.
Know how much you spend on alcohol monthly, and allocate that money to other areas of your life that need attention. It could be paying off debt, saving for a vacation, or investing in your future.
Find alternative activities.
Instead of going to the bar, find other ways to socialize and have fun. Join a sports club, take a cooking class, or start a book club with friends.
Invest in experiences or personal development.
Use the money you save to invest in experiences that will enrich your life or help you grow as a person. It could be taking a course, attending a workshop, or traveling
Build an emergency fund.
Start by saving a small amount each month and gradually increase it until you have enough to cover three to six months of living expenses.
Track your progress.
Record the money you save and celebrate your milestones. It could be a jar where you put the money you would have spent on alcohol or a spreadsheet where you track your savings and expenses.
It’s not just about the money you save, it’s about the positive changes you make in your life. By choosing not to spend on alcohol, you’re taking control of your financial future and investing in your well-being.
Journaling Prompts
Change. It's hard. Uncomfortable. But incredibly beautiful.
Reflecting on your relationship with alcohol and its impact on your finances is crucial for growth. Here are some prompts:
- How has your spending on alcohol affected your financial goals?
- What opportunities have you missed because of money spent on alcohol?
- What steps can you take to improve your financial health?
- What steps can you take to improve your financial health?
- What are some alternative activities or experiences you could invest in instead?
Take your time with these questions. Be honest with yourself. Your responses will help you understand your patterns, make necessary changes, and move towards a more financially secure and fulfilling life.
Practical Exercise
Let's take a concrete step toward better financial health.
Dwelling, while natural, isn’t always productive. And if it’s making your relationship with alcohol rocky, it’s time to have a chat with that brain of yours.
Calculate the total amount of money you spent on alcohol in the past month. Be thorough. Include drinks bought at bars, restaurants, and stores.
Decide on a financial goal for the upcoming month. It could be anything, paying off debt, saving for a vacation, contributing to an emergency fund, or investing.
Create a plan to redirect the money you would have spent on alcohol towards your chosen financial goal. Make a budget and stick to it.
This exercise is not about making you feel guilty about your past spending. It’s about making a positive change for your future.
As you implement your plan, be kind to yourself. Celebrate your progress. Every dollar redirected is a step towards better financial health and a more fulfilling life.