We all realize that smoking is bad for one's health. Actually in the evaluation of the CDC tobacco use causes more than 5 million mortalities per year across the planet. Roughly smokers die 10 years before nonsmokers do. So as 2014 has already begun, if you have decided to quit smoking as one of your resolutions, consider the following costs of smoking as extra impetus to quit smoking.
Smoking Causes Huge Opportunity Costs:
Smoking is a high-priced habit. Buying one pack of cigarettes every day the average smoker spends about $2,500 a year. Those funds should be put to work paying off your mortgage, college loans or credit card balances, helping to better your finances. But the opportunity costs are much bigger when you look at the future.
The average annual 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 could 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 Costs:
Smoking also increases the price of insurance premiums. As discussed earlier, 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 annually. Smokers also have more medical issues than nonsmokers do so you'll have to pay more for health insurance. According to a featured article in Forbes, insurance firms can charge smokers 50 percent more than they charge nonsmokers under the Affordable Care Act.
Homeowners insurance is also more costly for smokers. Statistics are clear: those who smoke have house fires more regularly than people who do not. That fact leads to higher insurance premiums. Statistics data also demonstrate that smokers get into more car crashes than nonsmokers. This means a rise in auto insurance rates also.
The Damage Smoking Causes Requires Costly Medicines and Medical Treatment
Smoking harms virtually all organs in the body in the according to the CDC. During the process it seriously adds to your likelihood of developing coronary heart problems, peripheral vascular sickness chronic bronchitis emphysema and a variety of cancers. The care for these conditions may need expensive drugs and hospitalizing. According to the American Lung Association smoking costs the U. S. $96 bill in direct health care spending in 2004 or a mean of $4,260 per adult smoker.
If you're a smoker you have lots of finance motivation to quit smoking in 2014. While the health benefits are optimal for people that quit smoking earlier, you can cut your chance of sickness and death regardless of age. It will likely not be straightforward to do as the nicotine in cigarettes is as addictive as heroin, cocaine, and alcohol but it is doable. Be certain to visit the CDC web site for motivating stories and tips and communicate with your doctor about smoking cessation programs available through your health insurer.
After you have successfully quit be sure to speak with your insurance pro about possible nonsmoker credits on all your insurance products. Finally put that extra money to work. Pay off debt. Save for a holiday. Put more into your IRA. The sky is the limit!
About the Author:
John A. Larsen, the Managing Director of Summerland Associates, LLC, has worked in financial services for 20+ years starting in banking. John has held Series 7, 63, and insurance licenses working with high net worth clients to craft better portfolios. John has spent the last 10+ years refining advanced investment theories
into a series of practical techniques that drive the Summerland Alerts. More articles are available on Summerland Associates website or thru Wealth Building Ideas, made availalbe for iPads.
into a series of practical techniques that drive the Summerland Alerts. More articles are available on Summerland Associates website or thru Wealth Building Ideas, made availalbe for iPads.
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