Comments on: Three Expensive Habits that are Putting Your Financial Future at Risk

By: Walter

Walter — Sun, 20 May 2012 21:02:14 +0000

Don’t forget about the cost of smoking. Smoking cigarettes is an addiction that needs to be fed every day. It doesn’t take vacations or weekends off.

Compaired with a person who smokes one pack a day, the nonsmoker saves about $2,555/year just for the cost of the cigarettes. Did you ever hear of compound interest? Well that means if you took that money every year and invested it instead of smoking it, after fifteen years with a concervative 6% interest rate, the value is an astounding $65,600.

Of course, the cost of the cigarettes is only a small part of the total cost. Health costs are obvious, but reduced home values due to smoking are another.

It is no secret that smokers earn considerably less than non-smokers. This may be due to other factors such as lower education than non-smokers which is another statistical reality, but statistics aside smokers have a more difficult time getting jobs, keeping jobs, and getting promoted. You don’t need statistics for that. Think of your own workplace. How many workers at your place of employment who you see outside taking cigarette breaks are in top management and how many of them are the lowest wage earners? It is no surprise that the fast food industry (ie the lowest wage earners) employs the highest ratio of smokers of any industry outside of the military.

So in a nutshell, smokers probably have a greater opportunity to save money than most others simply by giving up one of the most expensive habits of all – smoking cigarettes. $65,600 cost of smoking over 15 years – assuming that the price of cigarettes does not increase over the next fifteen years! That is a lot of money.

By: imani

imani — Thu, 08 Mar 2012 19:43:50 +0000

Lot’s of great advice. Most people know all of these things, but putting them into practice is hard, because spending is a symptom of a much deeper problem. I notice that you said you moved from a two bedroom apartment into a very expensive home, with more space than you need. Knowing that, why wait ten years, until your youngest is grown, to move into more affordable living? You said you’re friends have downsized, why haven’t you? You talked about your kids going to a posh private school, for reasons, only you know and along with that came the need to move to fit in. I am sure your reasons for sending your kids to a private school, are like any other parent. Eating at home and making coffee, won’t impact your budget much. Most people have a coffee maker and most people make dinner and bring the leftovers for lunch…no big deal. Private schooling and large homes are the biggest investments. Sell your house and find a two bedroom apartment, in an area with good Public schools. Choose your friends and your children’s friends more wisely. Surround yourself with people who judge you.. for more than your assets. How superficial! Think about downsizing and save your money for a rainy day, or many rainy days. You can’t dole out advice that you don’t follow.

By: Michelle Coulter

Michelle Coulter — Wed, 12 Oct 2011 19:21:02 +0000

Such an interesting article. My weekday habit of having a $5 latte was costing me $30 a week, but I really, REALLY, feel like I need that kick start after being up for about an hour (seems like I can get by for about that long on sheer adrenaline). So, because I really REALLY needed to start not spending that money, but don’t like regular coffee, I invested in a Tassimo coffee system and went from spending $30 a week to $30 every 6 weeks for the pods. Granted that doesn’t factor in the cost of the milk that I added to it, but I’m buying milk every week anyway for cereal and hot cocoa. Anyway, my Tassimo paid for itself inside of a month and now I only go to my favorite coffee shop about once a week as a splurge.

By: Kashif

Kashif — Thu, 31 Mar 2011 12:56:37 +0000

I would like to share a tip that I have read recently and am planning to try soon. It says that one has to do an inventory check every few months (I think twice a year is a good idea) and trim out as much as possible. That way, one may weaken the sense of belonging / possession and may help out the less privileged too.

By: Dale Clark

Dale Clark — Tue, 08 Feb 2011 01:14:00 +0000

It is hard to relearn the difference between things we need and things we want.

By: Nicole

Nicole — Sat, 19 Jun 2010 00:41:50 +0000

Interesting posts. I’ve noticed I tend to fill whatever space and budget I have… in 1999 I took a 7-month long road trip around the USA in a 17 year-old Datsun I bought for $800. I had little money but camped cheaply, stayed in hostels or with friends/family and did work trade on farms. It was one of the most fulfilling – and freeing – times in my life. When I returned I was astonished by all the STUFF packed tightly in my rented storage space, and ended up giving away/selling/throwing out most of it – only to start anew each time I’ve moved.

In many ways, not having much money is a blessing b/c I have to budget to make ends meet. “Keeping up with the Joneses” is a mentality of the upper-middle class (esp. urban/with kids) that I don’t envy.

By: Erin

Erin — Fri, 18 Jun 2010 19:42:06 +0000

I’m a micro person. Though I never tried, I am pretty sure I would end up spending towards the limits that I set every month.

By: pascal Ntare

pascal Ntare — Fri, 18 Jun 2010 13:14:36 +0000

We have to be more practical, to deal with poverty and clean our future through good thinking . The world is now very small because of the power of information technology ,we are lucky for that and we will be educated and professinals through this way.

By: pascal Ntare

pascal Ntare — Fri, 18 Jun 2010 13:05:08 +0000

I will be hapy to know i be rich and poor persons to live in good conditions
but particularly help my family and relatives.

By: Dan Klaus

Dan Klaus — Thu, 17 Jun 2010 18:13:50 +0000

Good article. I pack my own lunch daily, only buy things on sale including groceries, love couponing, fill out the back of reciepts to recieve 15% off from JC Penny’s, and other things. Here is the best thing we do:

I have a Schwab credit card which pays 2% cash back on all purchases. There is no annual fee and they reimburse for ATM fees even if you are overseas. The 2% is automatically deposited into our brokerage account monthly. So we use this card to pay everything. When that 2% arrives in our account, we transfer it to our educational savings account we set up for our daughter.

So, the credit card company is contributing to our daughters education. I also invested the money in a Chinese stock which as grown as well. So between visa and China – my daughters account has grown quite well without costing us anything.