Why You Need a Wine Budget

The other day Courtney called me up (this is Erin), asking for some LCBO receipts she needed.  I, of course, seemed to have misplaced them, and then got in trouble from my little sister … but I digress, as Wine Sister sibling relations is a story for another day.

What is the story, as Courtney pointed out, is that we spend a small fortune on wine.  Seriously, an annual figure somewhere to the tune of a sizeable down payment on an economy car. For personal consumption.  We’re not sure whether we should be proud or embarrassed.

Even though we’re huge fans of finding value wines, it’s easy enough to blow the budget if you cease to pay attention: a $15 bottle here, an incredible $12 bottle that warrants picking a case there … the occasional celebratory splurge or cellar worthy investment.  Here that whooshing sound?  That’s the gravity flow sound of money travelling from our bank accounts to the LCBO coffers.

So, we did what any savvy, cosmopolitan girls do when faced with a small financial crises from having way too much fun.  We tightened our belts and purse strings (our accessories budget is also a story for another day), and created a spending contract where the only thing red will be what’s in our glass.

(Legalities and Obviousness: If you can’t pay your bills because you’re spending too much on wine, maybe you need to look further than this blog for tips. Also, we are no Gail Vaz-Oxlade by any means, and if it isn’t clear enough, I guess we should really say that you should check with your personal financial professional if you’re feeling the squeeze of a too-small budget.  For everyone else, here’s some penny-pinching tips that may help you out.)

Why You Need a Wine Budget:

OK, in case you weren’t paying attention to our well-penned intro, if you spend mindlessly, you will go broke. Or maybe not broke, but you won’t have any money left over for the other fun things in your life like dining out, concert tickets, or keeping a roof over your head.

Wine may not be a necessity (to some people we don’t know), but it is a really great luxury that you probably want to have around. Be proud of your inner wino, don’t ignore it, and be honest that some of your hard earned cash is going to the bottle.

A wine budget is just like setting aside a certain amount for clothes or heat and hydro. Depending on the month it may go up or down (you’ll probably spend more in December than you will in January, for example), but if you have a set amount already in mind, not only will you wipe out any buyer’s remorse, you will likely be more careful with your spending decisions and avoid splurge purchases.

How to Create a Wine Budget:

How much do you earn? This where we all will differ slightly.  Some financial plans suggest you spend 1% of your total earning on booze, so if you earn $60,000 per year, you get a whopping $600, or $50 a month, for the hooch.  That may or may not do for you – it certainly wouldn’t for us –  so that may mean diving deeper into the murky waters of total budget planning. For that, you’re on your own.

What’s important to you?  Paying off debt? Saving for a house? Quitting your job and travelling around the world?  Or, just as valid, building an enviable wine collection? Make a list of your Top 10 spending priorities and start from there.

What Should You Consider in Your Wine Budget

How much do you drink – really? Be honest with yourself, and if you worry about what others may think, then don’t show them your budget (or take a moment to reflect on your drinking habits).  Maybe you down a bottle a night while watching prime time TV, or maybe you are a weekend warrior knowing only the repeated patterns of drunken bliss and wicked hangovers, or perhaps you are just as content to enjoy one glass of something really good with an equally exceptional meal.   Depending on your, ahem, routine, you may need to tweak you budget … or your routine.

Are you first class only or can you live with economy?  While we enjoy the occasional splurge for a special occasion, our sweet spot falls somewhere between $15 – $20 a bottle — and cheaper if we can find something good.  You may prefer wines with a higher price tag, and this budget’s your opportunity to decide if you can truly afford them (and if you can, call us, we should be friends) or if you should take it down a notch.

Are you the only imbiber in a family of teetotallers? Probably not, but maybe.   Either way, the booze budget you create should be for the household, just like any other budget. If your soul mate is also your drinking partner, that becomes a factor.

How To Stick  With Your Wine Budget

Keep track.  You know what they say about good intentions.  You went through all the hassle and heartache to come up with this darned thing — so use it! Download an app, or use a good ol’ fashioned notebook, but keep track of your purchases.

Get Creative.  No, not by skipping lunch to pay for that Barolo. Return your wine bottles instead of recycling them and you may end up with a few extra bucks towards a shiny new bottle. Find a great wine that’s super good and super cheap?  Buy a case.  While you may end up borrowing money from next month’s budget, you’ll be ahead of the game by stocking up on great finds for less dough.

Save For a Rainy (Or Dry) Day.  Just because you’ve got it, doesn’t mean you have to spend it.  If that case of great, cheap wine you bought last month is still going strong, stick with it!  The rest of this month’s budget can be put towards another month, like December, when your spending will likely increase.

What do you think about a wine budget? Do you have any tips or tricks that work for you? Leave your comments below!