Stop Smoking: The One Resolution For 2014 That Gives Back

We all realize that smoking is not 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 each year across the planet. About smokers die 10 years earlier than nonsmokers do. So as 2014 has already started, if you’ve made a decision to quit smoking as one of your resolutions, consider the following costs of smoking as additional impetus to stop smoking.

Smoking Creates Massive 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 off your home loan, college loans or credit balances, helping to enhance your finances. But the opportunity costs are much bigger when you look at the future.

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 yearly for 30 years and the potential return is in the ball park to $350,000. Put those funds to work using an advanced finance publication service like what Summerland Associates offers and the total could 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 may be twice what a non-smoker would pay. That amount can add up to thousands of dollars a year. Smokers also have more medical issues than nonsmokers do so you will have to pay more for health insurance. According to a article in Forbes, insurance brokers can charge smokers 50 percent more than they charge nonsmokers under the Affordable Care Act.

Owners insurance is also more expensive for smokers. Stats are clear: people who smoke have house fires more often than people who do not. That fact leads to higher insurance premiums. Probabilistic information also demonstrate that smokers get into more car crashes than nonsmokers. This suggests a rise in auto insurance rates also.

The Damage Smoking Causes Requires Costly Drugs and Medical Treatment

Smoking harms nearly all organs in the body in the according to the CDC. During the process it seriously increases your possibility of developing coronary heart issues, peripheral vascular illness protracted bronchitis emphysema and a spread of cancers. The care required for these conditions may need pricey medicines and hospitalization. In the opinion of the American Lung Association smoking costs the U. S. $96 bn. in direct health care expenditures in 2004 or an average of $4,260 per adult smoker.

If you are a smoker you have lots of monetary motivation to quit smoking in 2014. While the health benefits are the best for individuals that quit smoking earlier, you can cut your chance of disease and death in spite of age. It may not be straightforward to do as the nicotine in cigarettes is as addictive as heroin, cocaine, and alcohol however it is feasible. Be sure to visit the CDC web site for motivating stories and tips and chat with your doctor about smoking cessation programs available through your health insurer.

After you have successfully quit be certain to talk to your insurance professional about possible nonsmoker premium reductions on all your insurance products. Eventually put that additional money to work. Pay off debt. Save for a vacation. Put more into your IRA. The sky’s the limit!

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 strategies that drive the Summerland Alerts. More articles are available on Summerland Associates website or through Wealth Building Ideas, published for iPads.

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