# Do Your Habits Cost You A Lot of Money?

By Stas Bekman.

Published: 11 July 2006

# Do Your Habits Cost You A Lot of Money?

There are certain habits that cost you a lot of money. If you are trying to make some savings, those habits could be the only thing standing in the way.

For example if you like getting a latte at your favorite coffee shop, let's say that you spend \$3. Let's say that you don't get seduced to buy a muffin, and let's say that you don't buy more than once a day. That's about \$1000 a year! What if you wanted to get some extras, so that it makes it \$4 and get a muffin as well? Let's round it to \$6, that's about \$2000/year. What if you do get the drink twice a day? That's \$4000/year. As you can see that's a lot of money spent. If you really have to drink those lattes, invest into a coffee machine and make those drinks by yourself. It'll save you a lot of money.

Same goes for smokes. According to this paper (http://www.tobaccofreekids.org/research/), in USA an average pack of cigarettes costs about \$10 to consumers. If you smoke just half a pack a day, you end up spending almost \$2000/year.

Now if you buy smokes and lattes, you spend a lot of money on those habits.

I'm sure you can identify other habits that are quite expensive, and which can save you a lot of money if you change those habits.

And if you are an investor, the \$3 savings a day tells you a lot more. \$3 a day is about \$90 a month, which invested at eight percent interest over 10 years gives \$16,000. In 20 years it gives \$53,000 and in 30 years a whooping \$134,000. (you can calculate this by yourself, using this investment compound interest calculator (http://www.csgnetwork.com/compoundint2calc.html))

# Related Material

 Coffee savings calculator (http://www.hughchou.org/calc/coffee.cgi)Calculate how much money you can save on lattes

tobaccofreekids (http://www.tobaccofreekids.org/research/)
Interesting statistics about tobacco product costs.

A Pack a Day: The Costs (http://www.chemheritage.org/EducationalServices/pharm/chemo/activity/pakday.htm)
An interesting and simple math, suggesting that heavy smokers may spend 2,5 million dollars in 50 years on smokes.

Smoking is not only bad for your health; it also is a financial drain, as smokers' money could be used more wisely.

Teaching Children Money Habits for Life (http://www.extension.umn.edu/distribution/youthdevelopment/DA6116.html)
The life-long benefits of teaching children good money habits make it well worth the effort.