Personal Finance

Five things you can do with the money saved from Dry January

NimbleFins digs into how much you can save by doing dry January, and has some ideas for what to do with the money you save!

MILLIONS of Britons are banning alcohol this month for Dry January in what is thought to be the biggest booze embargo ever. And bank balances as well as bellies will be feeling the benefit—opening up the possibility to make long term finance gains.

For the estimated four million people taking part in Dry January this year, they could save at least £65 on alcohol—and that's just the moderate drinkers. It's estimated a typical drinking couple could save more than £200 throughout January.

What to do with the extra money saved in Dry January

Boost your savings

It's always helpful to have a safety net for if something goes wrong so putting money aside for a rainy day is a good idea. Interest rates are extremely low at the moment, so shop around for the best deal whether that be for an instant access savings account, fixed rate account or ISA. There are some really good schemes around, and if you're on Universal Credit and entitled to working tax and child tax credits, you can even get a 50% bonus on savings with the Help to Save scheme.

Treat yourself

The money saved could go on a nice meal out, something for the house or a spa treatment, or if you and your partner are heavier drinkers, the money saved could go on a weekend away.

Repay debts

Credit cards and overdrafts are useful when interest free, but can become a noose around your neck if you start being charged interest. Paying off these debts as soon as possible is imperative to avoid being ripped off and being charged way more than the value of what you bought on credit.

If you have credit cards or overdrafts earning interest pay these off as soon as possible.

Try robo investing

Robo investing is where money is paid to a company that invests in the stock market on your behalf. You have no control over where your money is put, but are asked questions beforehand to establish the level of risk you are happy with. You can start with a set amount, or save on a regular basis. It's useful for people who want to invest but don't feel they have enough knowledge of the stock market.

Pay into a pension

You could increase your contribution into your workplace pension, or take out a personal pension. If you did Dry January every year for the next 20 years, you could save thousands of pounds.

With the average Briton spending about £50,000 on alcohol throughout their lifetime, according to some estimates, why not carry on the savings with a dry quarter or even longer?

Check out other ways to save money or make the most of your cash here.

Erin Yurday

Erin Yurday is the Founder and Editor of NimbleFins. Prior to NimbleFins, she worked as an investment professional and as the finance expert in Stanford University's Graduate School of Business case writing team. Read more on LinkedIn.


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