Dry January Investing: Trading Pints For Portfolio Growth

Around 15% of Americans said they were planning to participate this year in Dry January — a month of abstinence from alcohol — according to a survey by Morning Consult.

Most cite the health benefits from taking a break from the bottle, but it has its financial benefits too. Bloomberg reports that alcohol-tracking app “I Am Sober” found that more than half its users saved more than $15 a day by abandoning drink last year.

But what do you do with those savings? Treat yourself to a new TV? Take a holiday? Or invest the money to keep it growing?

The last time I gave up drinking was during the first U.K. Covid lockdown in spring 2020. I was in denial about my favorite watering hole, The Blue Pig, being closed and stayed alcohol-free for three months. This changed my drinking habits totally.

Before Covid, I could spend anywhere between $75-$120 a week in the pub. Now, I spend only around $50. But during those three sober months in spring 2020, I saved around $1,200, and chose to put this money into a dividend yield equity individual savings account (ISA), a type of U.K. tax-free savings plan, which generally yields around 5% per year.

For context, a comparable type of investment in the U.S. might be something like the Vanguard High Dividend Yield ETF (NYSE:VYM). This ETF tracks U.S. companies known for high dividend yields and reinvests these dividends, aligning with long-term investment approaches. It has experienced significant growth since its low point in March 2020.

Also Read: New Year Resolution Stocks: Can Getting Fitter Be A Winner On The Stock Market?

New Year Resolution Trades

So, what other interesting investments could be made using the money saved during an investor’s Dry January?

New Year’s resolutions could provide some ideas. Most resolutions involve getting healthier, as gym memberships tend to flourish in January.

But be advised — according to a Forbes survey, these health commitments often don’t endure. Typically, they last only one to two months, as disappointment from limited progress and the lure of less healthy activities lead most people to abandon their gym memberships. This suggests that investing in fitness clubs might not be the best strategy.

Healthcare Stocks Starting The Year Well

Healthcare stocks could be a good route. The pharmaceutical industry…