There are so many people in this world that simply can’t get ahead in life. It seems that no matter how hard they try, they just can’t seem to make ends meet. I sympathize with a small handful of these people (because they actually do have problems that are beyond their control), but as for the rest, I feel that they are just piddling their money away, and they don’t even realize it.
What Are They Spending Their Money On?
I think you know where I’m going with this… There are millions of people that choose to spend about $3 or more every day on a ridiculous habit that actually hurts them in more ways than one. It’s proven to reduce their lifespan, it enhances their ugliness, and it drains their pocketbooks! Yep, it’s all due to this nasty habit called smoking. Since we all know it’s a waste of money, I won’t dwell on it, but let’s explore how much money we are actually losing with the spending habits of about $100 a month.
The Compound Interest of $100 a Month
Since the average smoker spends about $100 a month (most of them probably spend more actually), you might say that they waste about $1,200 every year. This is actually an understatement. Since this money could have been used for an investment, the loss is actually much greater!
If the markets began to grow like they used to (and it looks like they’re starting to come back recently), the typical investor could expect an average of 12% return on their investment. If, instead of smoking, you decided to invest $100 a month from age 18 to age 68, how much do you think you would acquire? This number will blow you away – it actually surprised me a little! $3.94 million dollars!
Stop Shaking Your Head at the Smokers
For all of you that are looking down on smokers, I would stop shaking your head if I were you. I would say that 99% of us have these $100/month habits. Yours might be Godiva Chocolates, or maybe it’s your everyday coffee, or you might enjoy bringing home trinkets for no real reason. There are so many habits that can sneak $100 out of our account each month! And ultimately, $3.94 million dollars is wasted.
Study That Budget
I admit it. Budgeting is no fun. But without it, we’re no doubt losing millions of dollars because we have no idea what we are doing with our money! Tell your money where to go and you’ll have a rich future!
Can you think of some other habits that are a waste of money?
photo by: Taxbrackets.org