KNOXVILLE, Tenn. – The impact of smoking on your health is well documented, but counselors at Consumer Credit Counseling Service (CCCS) of East Tennessee know that it can also wreak havoc on a person’s financial health. Whether it’s helping people struggling with credit card debt or trying to avoid foreclosure, counselors find that tobacco use adds a significant amount to monthly household expenditures and they advise consumers to consider reducing or quitting smoking to save money.
A pack-a-day smoker spending an average of $5.15 per pack could save $1,879 per year by quitting smoking. These funds could be used to cover living expenses, reduce household debt or start a savings plan. Invested in a basic savings plan paying just 3 percent interest, you would have in excess of $21,000 after 10 years. Over 30 years, that figure climbs to more than $91,000.
“Quitting smoking is good for more than just your physical health,” said Daru Burdge, president of CCCS. “Reducing or eliminating tobacco use can significantly increase the amount of money consumers have to use to pay off outstanding debt.”
Even homeowners struggling to make their mortgage payments and seeking a loan modification may be able to benefit by reducing or quitting smoking.
“Any reduction in spending will show the mortgage company that there is more income to put toward a homeowner’s monthly budget,” said Burdge. “The better their budget looks, the more likely the lender is to offer a favorable workout, such as a loan modification.”
This year’s Great American Smokeout is November 19, but any day is a good day to give up smoking. “Our clients get a great deal of satisfaction when they quit smoking,” added Burdge. “It’s a great first step in improving their physical and fiscal health.”
The financial benefits of quitting extend beyond just the cost of cigarettes.
Increased Employment Opportunities and Productivity - Some employers have begun hiring only non-smoking employees or instituting “no smoking” policies in an effort to reduce overall health care costs and increase productivity.
Reduced Health Care and Insurance Costs – Non-smokers often enjoy lower health and life insurance premiums and general healthcare costs than smokers. In Georgia, state employees who smoke pay $40 more per month for health insurance than non-smokers. Many states have enacted similar policies for smokers, including higher deductibles and increased co-pay rates. Average life insurance premiums for smokers can be double that of non-smokers. Non-smokers may also be eligible for discounts on homeowners’ insurance premiums.
Decreasing Values on Assets – According to Carmax, a used vehicle owned by a smoker will narrow the market of potential buyers and can result in lower trade-in or resale values than comparable vehicles owned by non-smokers. Similarly, general maintenance costs on a home are higher for smokers and a home that has been smoked in can be harder to sell.
For more information and tips to quit smoking, visit the American Lung Association.
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