Budgets and Money

The Financial Impact Smoking Can Have on Your Budget

Smoking impacts more than your health. It also can hurt your wallet too. Find out the real cost of smoking when it comes to saving money.

The Cost Of Smoking

Facts and Considerations About Smoking

There is no shortage of promotions, literature, products, and ideas on how to quit smoking. There's also no shortage of the many reasons why people should quit. And besides the laundry list of health complications associated with being a smoker, there is also the financial impact.

The following are three reasons how quitting smoking will help you shift the balance in your budget into the positive - for good!

You should have more money to save for retirement.

According to the American Lung Association, the average retail cost for a pack of cigarettes in the U.S. is $5.51. So if a person were to smoke a pack a day, that would be $38.57 per week, $154.28 per month, or $1,851.36 per year. That's money you could be putting away for your retirement - accruing and compounding interest! The added bonus is that by quitting, you'll increase your longevity so you'll be glad to have that money stashed away in your nest egg versus smokes.

Your life insurance rates could be cheaper.

There are many things that can factor into how much you'll pay for your life insurance. And since smoking carries a number of inherent health risks, you'll generally end up paying more than someone who is a nonsmoker. In fact, recent findings indicate that 45-year old male smoker can expect to pay 100 to 300 percent higher rates than a nonsmoker for a 20-year, $500,000 term life insurance policy. That could mean the difference between paying $52 a month or $289 a month!2

You'll be able to better avoid serious medical expenses associated with smoking.

It's no mystery that being a smoker will have some type of ill effect on your health. Not only can a serious smoking-related illness rack up substantial medical bills, but it could also mean that you won't be able to work. If you become seriously ill, you may end up having to tap into your retirement savings or other means in order support yourself and your family.

1. http://www.lung.org/our-initiatives/tobacco/cessation-and-prevention/smoking-cessation-economic-benefits.html
2. http://www.lifehappens.org/blog/this-is-what-smoking-will-cost-you/

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

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