If you’re doing something that’s not so great for you but gives you pleasure, consider the financial vice diet, which can help you avoid that behavior.
Although moderation can usually keep the damage in check, if you indulge too much and too often, it can have a negative effect on many aspects of your life, including your economic well-being.If you can reduce or quit these habits, you can become healthier and bring about a change in your finances.
Here are some common vices you should consider cutting down on or cutting out:
Nicotine Products
There are still plenty of people who indulge in nicotine. The Centers for Disease Control and Prevention estimates that 28.3 million U.S. adults smoke cigarettes and 3.08 million U.S. middle and high school students use at least one tobacco product, including e-cigarettes.
If you’re among either group, you know how expensive nicotine products can be.
According to the financial statistic aggregator Balancing Everything, as of March 2023, the current national average price for a pack of cigarettes is $6.43, and it’s much higher in states like Hawaii ($8.99), Massachusetts ($9.08) and New York ($10.45).
So, how much are you spending if you smoke a pack a day? Using the national average figure, it’s roughly $192.90 a month.
Imagine what you could do with that money if you were to spend it on something that’s good for you instead, like a gym membership. Or, you could open a savings account and deposit that exact sum each month. In six months you’d have $1,157.40 in the bank that you could use for emergencies or a weekend trip.
Vaping is popular, but e-cigarettes are also expensive. The Alabama Cooperative Extension System conducted research in 2022 and the data shows the average cost to vape a JUUL is $1,008 per year.
If you quit either habit, you’ll likely feel a lot better financially and physically — and possibly prolong your life.
Alcohol
Enjoying an adult beverage or two every once in a while isn’t likely to impact your budget. This is especially true if you purchase it from a grocery store.
The University of Puget Sound reported that Pabst Blue Ribbon averages 75 cents a can when you buy it in a 12-pack. So, it would cost you just $4.50 per weekend if you had three beers per night on Friday and Saturday.
However, buying alcohol can become far more expensive depending on where you live and if you go out for it.
For example, the cost calculator website Expatistan found that in San Diego, the average price of a draft beer at a bar or pub is $8, while a cocktail at a Los Angeles club will set you back $18.
So, if you go to the bars every weekend and have four drinks a night, you may be spending somewhere between $256 and $576 a month — not including tipping the bartender.
Bob Chitrathorn, certified plan fiduciary advisor, chief financial officer and vice president of wealth planning at Simplified Wealth Management, offers a good reason to reduce this kind of consumption.
“Assume you spend $400 a month on alcohol,” he says. “If you were to cut that to $200 a month, that in itself can make a huge impact. By the time you are 65, you will have spent $84,000 less on alcohol. If you invested those funds at 8% return, at 65 you would have about $458,000.”
Gambling
Gambling isn’t just about going to Las Vegas for a celebratory weekend and hitting the casino. It includes sports betting, lottery tickets, horse racing, playing poker with friends or wagering on anything that gives you the potential to win money.
The problem is, no matter what you play, the odds are rarely in your favor.
For example, a 2023 Davidson College report analyzed the odds of winning the top prize for the Mega Millions lottery — 1 in 302 million.
Each ticket is $2, so it’s pretty harmless if you buy just one. The report also found that you’re unlikely to fare any better by buying more than one ticket. So, if you drop $100 on 50 tickets expecting to up your odds, chances are you’re wasting cash that you could have spent on a utility bill or gas for your car.
Gambling for fun is perfectly fine when it doesn’t impact any of your financial goals or your ability to manage your household affairs. Just make sure go into it knowing how much you’re OK with losing, then stick to that figure.
Excess Shopping
It’s so easy to overdo it on shopping, especially if you’re armed with credit cards.
If you’re like most people, however, you have a finite amount of money to spend and need to stick to a budget so you can avoid overwhelming debt.
Credit card balances are at a record high — as are interest rates — so scratching an itch by going shopping and using cards for what you don’t need is a vice than can put you in a terrible financial position.
[Related:Wants vs. Needs In Your Budget — How to Tell the Difference]
Although not technically an addiction — according to the peer-reviewed paper DSM-5 and the Decision Not to Include Sex, Shopping or Stealing as Addictions — overbuying can be a major problem. If you have a repetitive, irresistible urge to purchase things, you may be experiencing a shopping compulsion.
If you’re unable to stop spending when you know you should, Char Newton, owner of Legacy Mental Health in Michigan, says it’s important to look at what psychological need this particular vice is meeting for you.
Ask yourself the key question, “Does overspending provide a sense of happiness or excitement, thus meeting the need of experiencing positive emotions?”, Newton says
“Upon evaluating what need this vice is serving, we can then seek healthier or replacement behaviors that are more in line with our value systems,” she adds.
[Read: Inside the Psychology of Overspending and How to Stop.]
Why Quitting Is a Good Thing?
If you feel you’re spending too much money on something that’s dragging you down, it’s time to adjust that habit, says Avigail Lev, founder and director of Bay Area CBT Center, a cognitive behavioral therapy center based in San Francisco and Oakland, California.
“People don’t change until the costs outweigh the benefits,” she says. “That will be different for different people, but it always begins with clarifying your values because they guide your goals.”
So, it’s important to reflect on what truly matters to you in life to identify your core values — and how these vices conflict with them.
Giving up expensive habits like smoking, alcohol, gambling and excessive shopping can bring about powerful benefits in your life, Lev says.
They include:
— Improved health. Quitting vices can lead to better physical and mental health. You’ll have more energy, breathe easier, reduce the risk of disease, and experience improved mood and mental clarity.
— Financial stability. By giving them up, you can save a significant amount of money. Think about what you can do with the extra funds, like paying off debt, building savings or investing in things that matter to you.
— Personal growth. Letting go of these habits creates space for personal growth and productivity. You can discover new hobbies, learn new skills and focus on activities that bring you fulfillment and joy.
— Stronger relationships. These vices can strain relationships. By quitting, you can improve connections with loved ones, be more present, and build trust and understanding.
[Related:14 Easy Ways to Pay Off Debt]
To get started, evaluate the pros and cons of your vice with a cost benefit analysis.
“Consider the short-term pleasure versus the long-term consequences,” says Lev. “Then, determine which side outweighs the other.”
Make a list of the specific benefits and drawbacks of reducing or quitting a vice. Seeing that on paper can provide clarity and help you weigh your options.
After that, calculate how much you’re spending on it and the amount of money you can save by reducing or quitting the habit.
“Visualize the potential financial stability and opportunities that come with that extra money,” says Lev.
Would you be better off saving it or spending it on other things? Do you want to invest those savings so you can create a more fruitful future? Once you’ve started this process, chances are you’ll have the motivation to either scale back or quit those vices completely.
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Vice Diet: The Financial Upside to Quitting Stuff That’s Hurting You originally appeared on usnews.com
