How Tobacco Use Impacts Your Finances: Quit Smoking, Save Money

Tobacco is a silent killer that slowly ruins your health while burning a huge hole in your pocket. All forms of tobacco, chewable, smoking, and pipes, come at a cost, and by indulging in this addiction, you give way to serious health hazards. Monthly costs are stifling, as meeting additional expenditures along with essential expenses takes a toll on the budget. Smokers generally suffer from increasing health deterioration, which is a disadvantage as health insurance coverage rates for smokers are higher than for nonsmokers. Incremental medical expenses shoot up with susceptibility to heart diseases, lung disorders, diabetes, and even cancer. Smokers also grow an affinity towards tuberculosis and rheumatoid arthritis. With time, a smoker’s dental health is more likely to suffer, and the cost of teeth maintenance further stresses the monthly budget. These are a few listed reasons that can cause huge financial leakage for smokers. 

Given this list of concerns that smoking presents, the benefits of quitting tobacco will not just help you save money, but more essentially save your health. If you are ready to quit tobacco, then read this article to find the best reasons to quit smoking forever.

Breaking Down the Cost of Each Cigarette

Cigarette companies display dreadful cancer images of smokers on the cigarette pack. Stubborn smokers remain unbothered and do not care to look at the cover. Let us get a rough estimate of how much a smoker spends in billing their addiction quota. According to experts, a 30-year-old smoker, smoking five cigarettes a day will lose over Rs 1 crore by the time they turn 60 years. For instance, cigarettes are priced at Rs 12 per stick. Smoking 5 sticks a day will cost Rs 60 and monthly Rs 1,800. The prices of cigarettes keep rising by 20% per year due to tobacco taxes. So instead of smoking if you had invested the money, you could have ended up with a healthier bank balance in the 30 years.

When it comes to breaking down the cost, these valuable insights show the extent to which financial implications are affected by smoking.

The cigarette purchase price is determined by dividing the cigarettes in the pack. In a country like ours, cigarettes are heavily priced as they contribute to the country’s revenue.

Smoking has adverse effects on health that may add to illness. Smoking is responsible for health issues and causes absenteeism from the office affecting one’s income.

Smoking causes environmental hazards as the litter from discarded cigarette butts is not biodegradable.

Thus, when calculating the cost of each cigarette, it is essential to consider the immediate purchase price and the long-term implications that smoking will have on your finances which include your health deterioration, your lost productivity, and higher insurance money. All these reasons are powerful motivators that should make you ready to quit tobacco.

Medical Expenses and Insurance Premiums

Doctor prescribing to patient to quit smoking

Medical expenses and insurance premiums of a smoker are dependent on various factors such as health, smoking habits and the insurance policy that one is choosing. Let's get a closer view of this.

Medical expenses

Smoking makes an individual vulnerable to various health risks such as lung cancer, respiratory disease, heart disease and much more. Therefore, for smokers, medical expenses involve high recurring costs. Smokers are likely to visit doctors more frequently for medical checkups, and consultations related to health issues.

Medication and treatment are more frequently required which again increases monthly expenses.

Smokers are more likely to get hospitalised for serious illnesses which can also lead to surgery requiring intensive care, thus adding to substantial expenses with high-cost medical bills.

The extent of medical expenses of course depends upon the severity of illness related to smoking. In most cases, smokers have to bear more expensive treatment than non-smokers.

Health Insurance premiums

As mentioned earlier smokers need to pay higher insurance amounts as they are considered at high risk by insurance agencies. The likelihood of developing smoking-related diseases compels them to pay higher health insurance premiums.

Life insurance

Life insurance premiums are considerably higher for smokers than non-smokers. The increase is related to their health condition, years of smoking habit, extent of health damage increases life insurance payment by two to three times more than a non-smoker.

Disability insurance

Smokers with a disability must pay higher insurance as their health is at a greater risk owing to their smoking habit.

It is important to note that unless you quit your habit of smoking you will be unnecessarily paying extra for premium instead of saving money by quitting smoking. Some insurance companies also help smokers to give up their habit. Quitting smoking will not only help you save in the long term but also will guard you against health hazards avoiding expensive medical treatments.

Long-Term Financial Impact

The impact of smoking is generally long-term. Financially an individual is impacted by substantial damages which can extend beyond the visible cost of all purchasing cigarettes. The consequences of smoking can be far greater than imagined and can cause deeper distress not just to the individual but to the entire family.

Health impact on finances

As we have discussed earlier, smoking inadvertently impacts the body and causes preventable diseases and other grave health conditions. The most prominent among them are lung cancer, heart disease, and obstructive pulmonary disease (COPD) among major illnesses. All these diseases gradually weaken the body, and increase hospitalisation, medication, and surgeries, leading to a lifetime cost of decreasing health and bank balance.

When you are suffering from smoking-related health conditions, they naturally reduce productivity. Your capacity to work to your best capability is never met as smoking takes away the healthy energy level replacing it with a list of illnesses that can reduce productivity by a high margin. Many smokers are compelled to take early retirement for health issues. Additionally, lost income creates more worries in life, weakening their long-term financial conditions.

We have already discussed how life insurance and health insurance premiums are higher for smokers. Both these insurances are essentially purchased by people for their safety, but smokers need to pay higher premiums, thus increasing the long-term cost.

Smokers as precautionary measures must take safety against house fire therefore, fire-related house insurance is an additional cost. Smoking fires are not unheard of, and it is better to be cautious than regret later. In both cases, either a smoker fills the insurance amount or suffers the setbacks of damaged property resulting in long-term financial losses.

Smokers have shorter lifespans and lose out on extra income by dying before time which weakens their financial future.

While smokers are directly affected by smoking-related diseases, they equally harm their family members by turning them into passive smokers. Their family’s health problems are additional financial costs that can have long-term implications.

In our country, the government imposes high tobacco taxes to discourage smoking. Smokers do not mind paying the amount parting with their hard-earned money. This thoughtless expense can have long-term financial implications. This money can be saved and invested for not just themselves but the benefit of their families.

Smoking-related illnesses are preventable. People coming to hospitals for the treatment of smoking-related ailments unnecessarily pressurize these services. Their choice of smoking leads to poor health conditions. They take away the beds from patients with unpreventable illnesses. Not smoking can increase productivity and not pressure the public system as much.

Smokers have a reduced amount to spend after retirement as a chunk of their income is exhausted from smoking, preventing them from enjoying a comfortable retirement. Some may have to get back to work earning less than they did in their working years as they have fallen short of finances.

It's important to note that the long-term financial impact of smoking can vary depending on individual circumstances, including the number of cigarettes smoked, the duration of smoking, and the individual's overall health. Smoking cessation can have a positive financial impact over the long term by reducing healthcare costs, increasing productivity, and allowing individuals to redirect money previously spent on cigarettes toward savings or investments. Additionally, quitting smoking improves overall health and quality of life, which can have intangible but valuable financial benefits.

Financial Benefits of Quitting

Financial Benefits of Quitting Smoking

Till now we have discussed with you how smoking impacts lives significantly creating huge financial, health and mental distress. When smoking alone can cause so many ill effects, it seems wise to give up on this habit. The significant benefits of quitting smoking have been evaluated by us on both a short-term and long-term scale. Let us take you through the financial benefits of quitting smoking.

The most significant is the money that you will be saving when you quit smoking. Cigarettes are made exceptionally costly by the government to discourage people from smoking. By abstaining from this habit, you are saving your valuable hard-earned money and redirecting it into savings and investment helping your money to grow.

By now when we write about health costs, you can relate to the additional medical expenses that a smoker needs to undergo in their lifetime. By deciding to quit smoking, the financial benefits of not having to visit doctors, not purchasing medicines, not being hospitalised, or undergoing surgery from smoking-related expenses do not arise. You can stay healthy and enjoy life better by putting these funds in proper investments for later utilization in the long term.

When insurance is necessary and you cannot do without it, paying higher sums just for a smoking habit makes little or no sense. By choosing to not smoke or quitting smoking as early as you can start paying low premiums from regular smokers. This significant saving can add to your plans and help you live in comfort in the long term.

Smoking causes early dental damage which needs recurring treatment from doctors. Not just staining teeth but gum diseases are quite common. By opting out of smoking, you are reducing dental cost and improving oral health.

Nonsmokers have a high and consistent energy level as opposed to smokers. With improved health by stepping out of smoking, you can stop absenteeism, make an impact on your work performance and dream of getting promoted with better opportunities and salary hikes. This short- and long-term financial consequence of quitting smoking can only lead to a happy and wholesome life.

Smokers generally have short lifespans, die early, and earn less. By quitting smoking, you can reverse this inevitable from your life. Quit smoking, stay healthy, live long, earn longer, and enjoy a life full of quality in the long run.

By quitting smoking, you also stop your family’s health from deteriorating. The extra financial burden that their failing health will cause will no longer exist if they give up smoking. This financial long-term benefit is worth considering. 

The addiction to smoking goes to the extent of smoking on credit. People start using their credit cards for billing cigarettes and lighters, turning this into a habit. Credit card bills can compound a galactic burden for individuals. But quitting smoking will help individuals improve their credit scores, reaping long-term financial benefits for them.

What matters is a life full of quality, energy, productivity, and love. Smoking is a habit that deprives you of living your life fully. By deciding smoking cessation, you are vowing to bring back quality in life which matters in the long term. With a life free from smoking, you can make significant savings. A life full of energy and productivity will help you increase the source of your income and with a healthy disposition you can try out new ventures with the love and support of your family.

The financial benefits of quitting smoking depend on several factors such as the cost of cigarettes, your smoking history, and your overall health. Quitting smoking is generally associated with both immediate and long-term financial advantages, making it a wise financial decision for those looking to improve their financial well-being and overall health.