Financial tip of the day.com - FREEDOM THROUGH FINANCE
Social Sites
  • Financial Tip Of The Day
  • Books
  • Websites
  • Contact Us
  • Disclosure

High cost of bad habits

6/7/2013

0 Comments

 

Ever wonder how much a bad habit costs you? If you smoke a pack of Marlboros a day in FL it will cost you over $6 a day ($12.50 in NYC). How much will that cost you over your lifetime? Well let's assume that you start today and live for another 35 years because on average smokers die after 35 years of the activity. Also assume a 10% return on your savings and to be conservative we'll assume that the price of cigarettes don't go up for 35 years.

That pack a day will cost you $593,543 in 35 years. That's what people call the "latte factor" because it's a seemingly mundane cost, like a latte from Starbucks, that can add up to a large amount over your lifetime.

Now if you choose not to smoke and save that $6/day until you retire at 65, when you started at 18, then you'll have $1,909,624 assuming all else constant. This also does not include the lower health insurance you'll pay. Nor does it count the employer contribution to your retirement plan.

0 Comments



Leave a Reply.

    Author

    This website was created due to the atrociously misguided financial advice that I've heard over the decades.  Financial freedom is not intellectually strenuous, but it takes discipline. 

    RSS Feed

    Categories

    All
    BHAG UPDATE
    College Savings
    College Savings
    Credit
    Economics
    Estate Planning
    Estate Planning
    Financial Planning
    Financial Planning
    Insurance
    Investing
    INVESTMENT JOURNAL
    Mistakes
    Net Worth Update
    Retirement
    Tax
    Thrift

    Archives

    October 2017
    August 2017
    May 2017
    April 2017
    February 2017
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    January 2011

Powered by Create your own unique website with customizable templates.