Smoking is Costing You a Fortune

I've certainly done my share of asking people to stop smoking. For reference, see:

• Don't Just Quit Smoking, Take the Next Step

• Stop Smoking

• Stop Smoking, It's Killing the Nation's Finances

• Stop Smoking -- It's Killing Your Finances

But it's been awhile since I've brought up the topic and I found this piece on the high cost of smoking, so I thought I'd revisit the subject.

As you might imagine, the article is filled with tidbits on how much smoking is costing you. I'm going to hit just the highlights. We'll start with the bottom-line:

The costs add up: Cigarettes, dry cleaning, insurance -- you can even lose your job. A pack-a-day smoker burns through about $29.40 per week, or more than $1,500 per year. That's a fat house payment or a nice vacation with the family. A 40-year-old who quits smoking and puts the savings into a 401(k) earning 9% a year would have an extra $250,000 by age 70.

And this is only the cost of the cigarettes themselves! There are tons of other costs that smokers incur as well (more on those later.)

Here are a few details on the cost of smoking:

The financial consequences of lighting up stretch far beyond the cost of a pack of cigarettes. Smokers pay more for insurance and lose money on the resale value of their cars and homes. They spend extra on dry cleaning and teeth cleaning. Long term, they earn less and receive less in pension and Social Security benefits.

And now, being a smoker can not only mean you don't get hired -- you can get fired, too: Weyco, a medical benefits administrator in Okemos, Mich., after announcing it would no longer employ smokers, fired four employees who refused to submit to a breath test. Recently it began testing the spouses of its employees, too, levying a $180-a-month surcharge on those who don't test clean.

The National Workrights Institute estimates that more than 6,000 companies refuse to hire smokers.

So, now do I have your attention?

The article goes on and on, documenting how smoking costs smokers in a variety of areas. These include:

• The cost of cigarettes themselves.
• Lost value on car trade-ins.
• Lost value on home sales (or at least costly treatments to get them "clean").
• Higher costs on life insurance.
• Higher costs on health insurance.
• Lost savings on homeowners insurance (non-smokers often get a discount.)
• Lower lifetime job benefits (they die before they earn as much as non-smokers.)
• Lost wages (smokers earn anywhere from 4% to 11% less than nonsmokers.)
• Bad breath, yellow teeth and smelly clothes are just a few of the personal side effects of smoking, and all cost money to correct.

Finally, here's one other striking stat that I just had to share:

We pulled some online quotes on 20-year term life insurance (a $500,000 policy) for a healthy 44-year-old male through BudgetLife.com. The range for a nonsmoker was $635 to $ 840 in premiums per year; for someone smoking a pack a day, the prices skyrocketed to as much as $4,410 per year.

Here are a few of my personal thoughts/observations on smoking:

• Smoking really is costing smokers a fortune. Of course, it's their money to spend, but I think few realize how much it does cost. For instance, people can smoke all their lives and then complain they can't afford to retire the way they want to. I suggest they re-read the information above.

• Here's just one example of how much it costs. Let's say you earn an average of $40,000 a year for 40 years of your working life. A smoker earns 7.5% (average of 4% and 11% numbers quoted above) less during these years. That costs smokers $3,000 a year. At 9% over 40 years, this equates to over $1 million.

• My parents have smoked all their lives and despite my mother having breast cancer, they have been unable to quit. I understand it's addictive, but at some point you have to realize the health and financial benefits of not smoking are so great that you MUST stop.

• When my parents moved out of their home of 20 years a few years ago (to a newer home), they removed the pictures from the "white" walls. It was unbelievable to see the color difference between where the pictures had been (still white) and the non-picture areas (brown/yellow) due to all the smoke through the years. It's sickening to me that we all were breathing that polluted air for all those years.

• Your health is even more important than your finances. If you won't quit to save some money, please consider quitting to save your life (or at least extend it.)

Comments

[Matt]

The problem is most smokers want to quit, putting the monetary and health data infront of them won't just make them quit. Smoking is an addiction that is hard to fight; I know I'm a smoker who is trying to quit.

I would much rather be a non-smoker than a smoker; my bank balance will definitely be happier if I do.

[rdub]

I'm one of those smokers that was lucky enough to quit. I saved about $1440 the first year in the price of cigarettes alone. I know I should have saved it, but I used it to buy new golf clubs as a reward for making it one year (I am now approaching two years). For those of you who are asking how I did it, it took me no less than 12 SERIOUS attempts to quit. I used the patch, tried cold turkey, and took cessation classes. I used every reason in the book to help me, too, like doing it for my son, doing it for my wife, doing it for my health, etc., but the one time it worked, I didn't need a reason. I was so used to quitting by that time, that it just worked. The 13th time was the charm. Keep trying. Never quit quitting!!! Eventually it will work.

[moneysmartlife]

Someone at work recently used www.quitmeter.com to help keep track of how much money she saved by quitting. It was impressive to see the numbers add up over time.

[SCapitalist]

Great post considering all financial impacts of smoking. Unfortunately, nicotine is the most physically addictive substance known. No wonder smokers will push aside mountains of financial and health concerns to continue their habit.

[Will]

very good article, I recently quit smoking and was doing my laundry, its amazing how strong the odor of cigs on clothes is because you can only really smell it once you kick the habit, it must of been horrid for people in my company.

[R.C]

I was a very heavy smoker. 2 packs/day. I attempted to quit several times but you really want to quit is the number one thing. Not for anyone else it's up to you.
Then I got the highest dose patch available and used two a day for about a week, then one, then kept reducing for about a month. If it takes longer so what. Then stay away from the smoking crowd. Dont go outside to b.s. when they take a break. It's too tempting. Avoid bars for awhile. It's been over 5 years since I quit and I can't stand to be anywhere near a smoker. Well hope this helps someone.

[a.s.]

I thought you said this would tell me about how much money it would cost me (if i were a smoker) to get all those cosmetic things fixed.
I would appreciate it much if you would do so.

[Winston]

I applaud those who manage to kick the habit. I lost two friends alone just through those horrid things. I used to smoke when I was with my rowdy officemates, so yes, I guess it does pay to be on the right crowd.

I saw an increase also in my savings the day I stopped smoking. (Last time I smoke was like 2 years ago). Not only a financial increase but also on the health side. I also have a daughter and a wife, so yes, having support could be good.

Another thing that caught my attention was this article : http://www.freemoneyfinance.com/2006/11/smoking_is_cost.html

I really dont want my libido to become affected like it has to this person :D