Quitting Smoking and Saving Money – Ending the High Cost of Smoking

The money spent on smoking cigarettes can add up to enough to send children away to college, buy a home, or open a business.

Everyone wants more money. If you are a smoker, you may be spending more money on cigarettes and smoking-related expenses than you realize. You probably already know that quitting smoking is good for your health. But were you aware of just how much money quitting smoking can save you? While the most obvious source of monetary savings is from simply not buying cigarettes any longer, you can also save money in a variety of other ways by quitting smoking. From saving money on healthcare treatments for smoking-related problems, to problems with gaining affordable insurance, quitting smoking has many benefits.

Pack of cigarettes on a photo of hundred-dollar notes

Financial Black Hole

A financial black hole is defined as putting money into a product or action that does not produce any financial, or otherwise, beneficial results. Smoking cigarettes is a financial black hole by definition. There is no return on your investment. A pack of cigarettes range anywhere from $5.25 per pack in Virginia, to $12.85 per pack in New York.

This would mean that a smoker endlessly purchases a pack of cigarettes with no beneficial end result. Even a mortgage has an end, where you then own your home outright. The same goes for a car note. Purchases eventually become final. Insurance even has a beneficial outcome if, and when, an accident occurs. Cigarettes, however, have no end. The purchases do not become final unless the smoker quits.

Not only is there no end in sight, other than quitting, there is no beneficial return on the smoker’s investment. In fact, the longer the individual smokes, the more adverse health issues will arise. This adds an additional cost in the form of medical bills. Additionally, if the smoker then passes away, all monetary debts will then pass on to the spouse or children, thus, causing financial hardship on family and loved ones. Quitting, however, can alleviate all possibilities of health issues and financial burdens being passed down to loved ones due to smoking – in a blink of an eye.

Personal Cost

The most obvious way that quitting smoking can save you money is through no longer spending money on cigarettes. Depending on how many cigarettes you smoke, you can save a significant amount of money simply by not purchasing cigarettes. According to the American Lung Association, the average cost per pack nationwide is $5.51. If you smoke approximately one pack of cigarettes per day, you can potentially save over $2000 per year. This rate climbs even higher when the amount of cigarettes you smoke rises. If you smoke two packs of cigarettes, you can save more than $4000 per year. If you smoke three or more packages of cigarettes per day, the savings can sometimes exceed $6000 per year.

Consider making an impulse purchase in the amount of $2000; most people would determine that this is just too expensive for an impulse buy. Additionally, most impulse buys result in money spent on an item or service that is not necessary. When it comes down to it, cigarettes are an unnecessary purchase, and after they are gone, you have neither a great experience or an item. While it is important to treat yourself once in a while, the damage done by cigarettes makes them a poor spending choice.

Because money spent on cigarettes is often stretched out over a longer period of time, it can be difficult to grasp exactly how much money you are spending. Sitting down and working out the numbers is a startling experience for smokers, but can help to give you the reality check you need to quit. If you aren’t sure what you’ve spent in the past, track your spending for a month. This will give you a rough estimate of what you spend on cigarettes throughout the year.

Quitting Smoking Benefits Life and Health Insurance Rates

While you can save money on cigarettes, quitting smoking can help you to save money in other areas, too. Insurance rates can be significantly more expensive for smokers living in the United States. Smoking has a direct impact on health, and is proven to increase the potential rate of many diseases. It also significantly increases the likelihood of early mortality. Insurance companies recognize this, and see it as an increased risk. That risk is passed back to the consumer who smokes through increased rates. Each company increases their rates by an amount specific to the insurance plan in question. According to Jeff Rose from Good Financial Cents, the amount that smokers pay can frequently be up to four times higher than that of a non-smoker.

To make this more concrete, a hypothetical “average” individual can be used to generate instant quotes for life insurance. Using a hypothetical 30 year old individual living in New York who stands approximately 5’7″ and weighs approximately 130 pounds, we can illustrate the savings directly. The results become obvious. The following is pulled from Geico’s instant quote system:

Non-Smoker Rates

20 year term rates for non-smokers

Rates For Those Who Have Smoked In Last Year

20 year term rates for smokers

What Can You do With Your Money?

If you save approximately $100 per month on cigarettes, you may find yourself suddenly able to afford services or items you originally thought you could not afford. Some individuals simply put the extra money onto loans or mortgages each month. This can mean paying your home, car, or credit card off much faster. In this way, quitting smoking can quite literally help you to pay off debts more quickly. Other people prefer to treat themselves and reward themselves for not smoking. Having new clothing, saving up for a vacation, or simply having more money in your pocket can be a great feeling.

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