Millennials and their spending habits is no new subject. After all, there are plenty of articles out there discussing how millennials are spending more on lattes than they are saving for retirement.
While some millennials spend a significant amount of money on coffee, most of the millennials I know spend more money on alcohol.
I don’t consider myself a heavy drinker by any means, but I do drink a glass of wine most nights. I was curious as to how much millennials should spend on drinking. What does the typical millennials spend on alcohol? And am I spending too much? How much should I spend on booze each month?
How Much Does the Average Millennial Spend on Alcohol?
According to a study conducted by USA Today, the average millennials spends $300 a month on alcohol.
While that may seem like a lot of money, it is often tied into the social budget of millennials. But is that too much money?
To some people, $300 a month may seem like way too much money to spend on alcohol each month. But keep in mind, personal finances are personal – it may be completely worth it to some people.
How Much Should I Spend on Booze?
How much you spend on alcohol each month is entirely up to you.
And that’s the beautiful thing about a budget. As long as you can afford it, you can spend money on whatever you’d like.
But the key is being realistic on where you stand financially. If you’re struggling to make your student loan payments, buy groceries, or save for an emergency, then you may want to consider cutting back on your booze budget.
However, if you enjoy drinking while being able to afford it and maintain a healthy lifestyle, then by all means, set your own budget.
If you’re not sure how much you should spend on alcohol per month, here are some tips to get you started.
Budget Your Priorities First
Alcohol and other social expenses aren’t the most important things on your budget.
The most important priorities are paying your bills, your lenders, and making sure you have a roof over your head and food in the fridge. Most of these are relatively fixed expenses, meaning they won’t go away or change much.
Drinking and socializing, however, are variable expenses. You can put it in the same category as shopping – it may be nice to do, but it’s typically not necessary.
Budget for your priority expenses first, and then add in any supplemental expenses. If you have extra room in your budget, rate your spending priorities. Would you rather eat out for lunch every day, or go grab a cocktail with colleagues after work? Would you rather go shopping on a Saturday, or go out with friends Saturday night?
Personal finances and budgeting all comes down to prioritizing what is important to you. In the words of blogger and author Paula Pant, “You can afford anything, but you can’t afford everything.” So true!
Track Your Spending Throughout the Month
Don’t just set your budget and leave it – you will need to check your spending throughout the month.
Track your spending by using an app, using spreadsheets, or using a good old paper and pencil.
Take Advantage of Credit Card Rewards
If you find you have room in your budget to go out often, be sure to use the right credit card for the occasion.
Some credit cards offer more points for eating out and socializing, so don’t lose out. If you have multiple credit cards, sit down and compare the rewards associated with each. That way, you can choose the right credit card no matter where you are.
Cut Back
If it is a priority for you to go out and have fun, then you will likely have to cut back in other spending areas.
List out every expense in your budget so you see where your money is going. If there are things you could cut out, such as magazine or app subscriptions, do so. Further, take a look if there are any areas of spending you could cut back on. Could you go to a more affordable grocery store to save money on food? Could you call your auto insurance company to get a lower rate? It all counts and helps you prioritize your spending according to what is important to you.
Also, if you enjoy drinking, you can always cut back. For example, I like to try new wine, which can get somewhat expensive. So, I make up for that in other ways by limiting myself to one or two drinks when I’m out with friends. Cutting back even a few drinks goes a long way in saving money in the long-run.
How much money do you spend on alcohol? How do you budget for drinking?
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Honestly I don’t drink a lot, usually on occasion and maybe because our group have same finance we don’t overspend on alcohol however good plan ahead and a dedicated budget could be a nice idea!!!