Sunday, 24 November 2013

Mistakes to Avoid, #1 - Smoking (Burning Your Fortune Away)

I will post a series of posts that discuss the mistakes that we should avoid in life and on our investing journey.

First, smoking is like burning money and is a habit or addiction that we should not pick up.

1. Cost of cigarettes

Singapore is one of the most expensive place for smokers.  One pack of cigarettes costs between $8 to $15, depending on brands.  For simplicity's sake, I use $10 for calculation: $10 a day becomes a massive $3,650 a year, $36,500 in 10 years and $109,500 in 30 years!  This should be much higher, considering the interest to be earned and the compounding effect.

2. Higher Insurance Premium

A smoker is paying higher premiums for his/her insurance policies.  This is to compensate the insurer because of the increased health risk of the insured person.  But thing done (smoking) cannot be undone, and the insurer will not reduce his premium even if the smoker quits smoking.

3. Increased health risks

Smokers have higher health risks, meaning more money is needed for medication.

4. Harmful to your loved ones

Second-hand smoke is harmful for your family members.  There is no risk-free level of contact with second-hand smoke; even brief exposure can be harmful to health.

Therefore, a smoker is burning away a fortune.


  1. Agreed. My father is a heavy smoker. Early this yr since he suffered a mild stoke, he quit smoking totally. I tried smoking as a teenager, but was stopped by my mother and I thank her for that. Smoking makes ppl weak!

  2. Smoking has health consequences, affecting not only the smoker but also the family members. It is a habit not to be taken up.