There’s this joke that normally goes around at the beginning of every year in which men compare beer prices with a bag of cement and swear they’ll start building a house instead of wasting money on alcohol.
A bag of cement is roughly equivalent to three beers. With discipline and dedication, you can actually substitute beer with cement and within a year, have enough to build your house.
That brings us to the question: So how much should you spend on alcohol in a month?
The answer is relative.
In general, you should always dedicate 10% of your monthly pay after taxes to entertainment.
Alcohol falls under entertainment therefore, depending on how much you love alcohol and your will to sacrifice other entertainment activities, you can give it whatever percentage you want but shouldn’t be more than the 10% stated.
Ideally, it should be 5%-8% of your monthly pay.
According to a survey, millennials and Baby Boomers spend the most on alcohol. The study released in 2016 also found that 28% of millennials said they would order a premium brand of liquor to impress their friends – even if those friends happen to be their Instagram followers.
Drinking isn’t cheap.
Whether you’re a wine connoisseur or just love going out for cocktails with friends, the cost of booze adds up quickly. You can calculate how much you spend on booze with this alcohol calculator here to see for yourself.
If you want to get your booze spending in order and eventually avoid being an addict, try these tips to save money on alcohol.
1. Keep track
Don’t just drink aimlessly, track how much you are spending. In fact, you can open an account specifically for this so that when the money runs out you know that you have just exhausted your drinking money and have to wait for the month to end so that you top it up.
2. Consider hidden and indirect costs, too
Drinking comes with a lot of hidden costs that might be hard to account for at the end of the day. Keep in mind such things as taxis, food, friends tips that might be not on your budget but you’ll still end up spending on.
3. Drink at home
We have done this for the past two years during the pandemic. Drinking at home is safe and very cheap compared to going to a club.
4. Set a budget, and stick to it ruthlessly
Have a budget and always understand that there’s no cheating out of it. Use point number one to stay loyal.
5. Buy in bulk
Just like groceries, buying alcohol in bulk can save you money. Walk to the nearest suppliers and buy whatever you want in bulk, especially, if you are planning to drink at home.
6. Avoid derailers
You might have a solid plan on how to cut your spending on alcohol but be very careful with your social setting. Avoid friends who will drag you into a bar or into going out. Don’t buy alcohol during the weekends, it might tempt you to join your friends who aren’t impressed with your new plans.
The basic advice here is that sticking to a budget does not preclude having a good time. Keep your vices in check and you’ll certainly be the better for it in regard to both finances and health.