Dry January is here and whilst there are many health benefits to cutting out alcohol for a month, people’s bank balances can also reap the benefits of staying sober.
Whether it’s paying for too many rounds at the bar or splashing out on a taxi home from the pub when you really could’ve walked, it is easy to forget about your cut-off point money wise when boozing is on the cards.
In fact, a recent survey revealed that spending outside of their means is the UK’s second biggest financial regret. So, just how much are people overspending in social situations and could Dry January actually help their finances?
To find out, Brits were asked about the situations when they are most likely to overspend to shed light on why going teetotal for the 31-day challenge could be a good option for people looking to improve their finances.
The results were fascinating. Over a quarter of Brits admit to overspending at a restaurant (26 per cent) and a further 19 per cent say they are likely to go over budget at the pub.
In social situations, a whopping 67 per cent of Brits admit to feeling pressure to overspend, with 21 per cent of people saying they overspend due to not wanting to miss out. Peer pressure is expensive it seems!
Meanwhile, over a fifth (21 per cent) admit they get carried away and forget budgeting. Dry January can help curb these habits as when alcohol is involved people’s judgement can be clouded and spending could skyrocket.
Sharvan Selvam, Commercial Director at Aqua, gave some sage advice on how to think more rationally when the temptation to get a bit too tap happy creeps in.
“Before each purchase, take a step back and ask yourself if the purchase is within your budget by… knowing your disposable income,” Selvam explained. “To stay within your means, it’s also important to understand what money you have left over after paying for essential costs, such as rent, groceries, and after you have set aside savings.
“To figure this out, deduct your essential outgoings from your total take home pay or household income to see how much you have left for non-essentials, or treats.”
The table below shows the UK’s five biggest financial mistakes:
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