Today I want to talk about the impact alcohol has on our finances, and the importance of managing money and alcohol.
Much like money, alcohol is a sensitive subject, so please know my intention is not to judge or preach, but to offer you a possibly new perspective, and an opportunity to observe yourself through a different lens.
Here are some of the ways I have seen drinking impact my own financial wellness, as well my clients, and some tips on managing money and alcohol.
1) Alcohol is expensive
This one is pretty straightforward–alcohol impacts our finances because it is expensive. Drinks out will have a bigger impact than drinking at home, however they both add up.
If you are not aware of how much of your discretionary income is going towards alcohol, a helpful first step is to track the amount. From there, you can decide if there is an opportunity to tweak. The first time I tracked alcohol, I was surprised to learn that we spent hundreds a month.
Could you limit your restaurant and bar cocktails to a certain number per night out? Is there another line item on your budget that you may want to divert some of your alcohol spending to, like vacation savings or a fitness membership?
2) Alcohol reduces our financial inhibitions
Alcohol reduces our inhibitions, and that includes our financial inhibitions. Meaning, if you are out to a nice dinner and start with a cocktail, you may be more likely to order more food and drink and spend more on dinner that you would have otherwise.
If you retail shop while drinking alcohol you are more likely to spend impulsively and stray from your budget.
Some things I bought while drinking that weren’t in line with my intentions:
A plane ticket
Prescription eye glasses (that didn’t fit)
Clothing I didn’t need
More alcohol
Can you establish guidelines around spending and drinking? Read here for more tips on controlling drunk shopping.
3) Alcohol increases our financial anxiety
Many of us drink to relieve stress and anxiety–I did. What does it change for you to know that in the days following, you will actually experience more anxiety? Its often referred to as hangxiety.
“Alcohol works on the brain’s GABA receptor – this is what makes you feel more relaxed when you start drinking.
As drinking continues, our brains also start to shut off glutamate (which makes you anxious), increasing feelings of calm and being uninhibited.
But as alcohol starts to wear off, our brain tries to restore the normal chemical balance. It does this by both reducing the brain’s GABA (lessening calm feelings) and increasing glutamate (making us feel more anxious).”
When I learned more about how the brain is effected by alcohol and how it impacts anxiety, I re-calibrated how much I drank and started paying attention to how I feel in the few days afterwards. Overall anxiety impacts financial anxiety, making it harder to nurture our relationship with money.
To help with hangxiety:
Stay hydrated, avoid caffeine, eat something, rest, and remind yourself it will pass as your brain chemicals rebalance. During this time, try not to make important financial choices. Pause and revisit.
The more awareness and self-reflection we build, the more courageous we become at examining our habits, in order to study how well they serve us.
Wishing you healing and success on your financial wellness journey.
