How does smoking tobacco impact your personal finances?

The high costs of smoking tobacco can have a serious effect on your personal finance, especially when you factor in all of the potential health care expenses. Read on for more information.


If you think smoking has nothing to do with your finances, think again!

dollar bills and tobacco cigarettes impact finances
Tobacco impact your finances more than you imagine. Source: Freepik.

Smoking tobacco is not only a health hazard, but it can also impact your personal finances.

In addition to the cost of the cigarettes themselves, smoking can also lead to higher insurance premiums, increased healthcare costs, and lost productivity at work.

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A recent study found that, on average, smokers incur $2,133 in additional medical expenses each year. 

This includes both the direct costs of medical care and the indirect costs of lost productivity due to missed work. It can be a huge impact on someone’s personal finances caused by tobacco.

The high costs of smoking tobacco: it has an impact on your finances

close up image businessman with eyeglasses sitting by table smoking tobacco drinking coffee impact finances
Smoking will cost you much more than your health. Source: Freepik.

It’s no secret that smoking tobacco is bad for your health. But did you know that smoking tobacco can also impact your finances?

According to the Centers for Disease Control and Prevention, the average cost of a pack of cigarettes is $6.28 in the United States. This means that a pack-a-day smoker spends over $2,000 per year on cigarettes alone. 

Tobacco use imposes a considerable financial burden on smokers because smoking increases your insurance rates and reduces your life expectancy. 

So it’s not just the costs of buying cigarettes. Smoking also results in higher health care costs and lost productivity. 

In addition, smokers are also more likely to live in poverty and have lower incomes than nonsmokers. 

As a result, tobacco use imposes a significant financial burden on individuals, families, and society as a whole.

Higher insurance premiums 

One way that smoking tobacco can impact your finances is in the form of higher insurance premiums. Smokers often pay higher insurance premiums, as they are considered to be a higher risk for developing health problems.

In fact, a smoker can expect to pay about 50% more for life insurance than a non-smoker.  The CDC estimates that smoking costs the average smoker over $3000 per year in direct and indirect expenses. And, if you’re looking for health insurance, you’ll also be subject to surcharges if you use tobacco.

Increased healthcare costs caused by tobacco

Studies have shown that tobacco use is a significant contributor to heart disease, lung cancer, stroke, and other severe conditions.

As a result, smokers are more likely to experience healthcare problems and require more expensive medical care. 

In fact, tobacco smokers are estimated to incur $193 billion in additional healthcare costs each year. So, not only does smoking tobacco impact your health, but it can also put a strain on your finances. 

Lost productivity will negatively impact your finances

According to the Centers for Disease Control and Prevention, smoking tobacco impact the United States’ finances by costing about $300 billion each year in lost productivity. 

This includes $5.6 billion in smoking-related absenteeism and $150.8 billion in premature death. In addition, smokers are more likely to miss work due to illness, and they are also less productive when they are at work. 

For example, smokers take an average of two more sick days each year than nonsmokers. They also have higher rates of absenteeism, presenteeism (working while sick), and job turnover. 

All of these factors contribute to lower productivity in the workplace and higher costs for employers. In addition, smokers are also less likely to be promoted and more likely to be fired than nonsmokers.

How smoking tobacco can damage your property and impact your finances

Another way that smoking tobacco can impact your finances is by the damaging effects of smoking inside the house.

Expensive rugs and clothing aren’t safe either – cigarette burns are permanent. And if you own your home, 3,000 smokers will set you back an extra $6,000 in repairs every year. That’s on top of increased insurance rates. 

Even if you don’t live with a smoker or own your own home, secondhand smoke exposure can still cost you. They may also be charged higher rates for renters or homeowners insurance.

How much money do smokers save by quitting

lady woman breaking cigarettes impact health issues and finances
Quit smoking to improve your health and your finances. Source: Freepik.

Smokers in the United States spend an average of $ 2,000 per year on cigarettes alone. This doesn’t even include the additional costs of lighters, ashtrays, and other tobacco-related items that impact finances. 

You will instantly free up this money for other expenses by quitting smoking. Over time, the money you save by not smoking will add up.

Quitting smoking will also lower your insurance rates. Life insurance premiums for smokers are about twice as high as those for nonsmokers. Health insurance premiums are also higher for smokers.

Some employers charge smokers higher health insurance premiums than nonsmokers. You’ll be eligible for the same rates as nonsmokers by quitting smoking. Finally, quitting smoking can help you avoid costly medical bills down the road.

Within just after a few years of quitting, your risk of having any health-related issues caused by smoking will decrease. And eventually, your health will be the same as someone who has never smoked.

Quitting smoking can help save a lot of money. 

Benefits of quitting smoking: save your health and your money

If you’re trying positively impact your finances and put them in order, quitting smoking tobacco is a great place to start. It’s important to remember, though, that quitting smoking is not easy. It will take time and effort, but it’s worth it in the end. You can do it!

In addition to the health benefits, quitting smoking also saves you money. In just one year after quitting smoking, you can save more than $1,000. And over time, the amount you save will keep getting bigger and bigger.

Not to mention, the little luxuries such as buying a coffee or having an evening meal out with your family will be easier to pay for, and the bigger ones like going on holiday can now become more possible.

Keeping your health and financial life on track is vital to a more happy and more fulfilling life! If you wanna know more tips on a better financial life, check out this next article.

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10 tips for a better financial life

Learning how to manage your finances will give you a lot of advantages in life. Put these tips into action, and you'll see the results.

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