We all notice that smoking isn't good for one's health. Actually in the judgement of the Center for Disease Control and Prevention tobacco use causes more than 5 million deaths every year across the planet. About smokers die 10 years sooner than nonsmokers do. So as 2014 has commenced, if you have made a decision to quit smoking as one of your resolutions, consider the following costs of smoking as added motivation to stop smoking.
Smoking Causes Big Opportunity Costs:
Smoking is a high-priced habit. Buying and using one pack of cigarettes each day , the average smoker spends about $2,500 a year. Those funds should be put to work paying down your home loan, college loans or credit card balances, helping to boost your personal finances. But the opportunity costs are far larger when you look at the long term.
The average yearlong return for the S&P 500 including the Great Depression and Great Recession is 7.81% in the past 20 years. If you invested $2,500 each and every year over 20 years you might have $140,000. Invest $2,500 annually for 30 years and the potential return is in the ball park to $350,000. Put those self same funds to work using an advanced financial newsletter service like what Summerland Associates offers and the total might be in the millions.
Smoking Creates Expensive Insurance Premiums:
Smoking also increases the cost of insurance premiums. As already discussed, smokers die at an earlier age than nonsmokers do. As a outcome your life insurance premium could be twice what a nonsmoker would pay. That amount can equal thousands of dollars a year. Smokers also have more medical issues than nonsmokers do so you'll have to ante up more for health insurance. According to a featured article in Forbes, insurance firms can charge smokers 50 % more than they charge nonsmokers under the Affordable Care Act.
Homeowners insurance is also more costly for smokers. Statistical data are clear: folks who smoke have house fires more regularly than folks who don't. That fact leads to higher insurance premiums. Statistical info also demonstrate that smokers get into more automobile crashes than nonsmokers. This suggests a rise in auto insurance rates also.
The Damage Smoking Causes Needs Costly Medicines and Medical Treatment
Smoking harms almost all organs in the body in the according to the Center for Disease Control. During the process it seriously increases your chance of developing coronary heart disease, peripheral vascular sickness protracted bronchitis emphysema and a variety of cancers. The care for these conditions may need expensive drugs and lengthy hospital stays. In the opinion of the American Lung Association smoking costs the U. S. $96 bn. in direct health care spending in 2004 or a median of $4,260 per adult smoker.
If you are a smoker you have masses of financial motivation to quit smoking in 2014. While the health benefits are best for individuals that give up smoking earlier, you can cut your possibility of illness and death regardless of age. It may not be easy to do as the nicotine in cigarettes is as addictive as heroin, cocaine, and alcohol nonetheless it is feasible. Be sure to visit the CDC web site for motivating stories and tips and talk with your health practitioner about smoking cessation programs available through your health insurer.
After you have successfully quit be certain to speak with your insurance broker about possible nonsmoker discounts on all your insurance products. Ultimately put that additional money to work. Pay off debt. Save for a holiday. Put more into your retirement account. The sky's the limit!
About the Author:
John A. Larsen, the Managing Director of Summerland Associates, LLC, has worked in financial services for 20+ years beginning in banking. John has held Series 7, 63, and insurance licenses working with high asset value clients to craft better portfolios. John has spent the last 10+ years refining advanced investment concepts
into a series of applied methods that drive the Summerland Alerts. More articles can be found on Summerland Associates internet site or via Wealth Building Ideas, published for iPads.
into a series of applied methods that drive the Summerland Alerts. More articles can be found on Summerland Associates internet site or via Wealth Building Ideas, published for iPads.
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