All right, you’ve read a hundred articles talking about how vaping with the better e cigarette brands will benefit you financially as well as healthily. Yes, healthily is a real word!
Anyway, we wanted to get to the actual nuts and bolts of how to save money fast using ecigs. It all starts with a look at the cold, hard numbers.
If you live in New York you are paying in the range of $12 to $14 for a pack of cigarettes. If you live in the smokiest state in the union, Kentucky, you are paying about $5.
There is a big gap in cigarette prices across the country but whether you live in the Bluegrass state or the Big Apple, you will save money by using ecigs.
If we look at the national average, and lets do that because it simplifies things for everyone, especially me, the average cost of a pack of cigarettes is about $7. That means that a pack per day smoker will spend $2555 per year on cigarettes. ($2562 in a leap year) That’s a lot of money.
Just how much money is that?
Well that all depends of your personal financial situation. If you are Miguel Cabrera of the Detroit Tigers and you make $30 million per year, $2555 is about 1.4 % what Mr. Cabrera makes in one night playing first base for the Tigers. That is the exception. The rule is that the majority of us consider $2555 to be a significant amount of money.
In fact a recent study by the National Bureau of Economic Research shows that a full 50% of Americans would seriously struggle to come up with $2000. So I think that we can all agree that $2555 is a lot of cash.
Now let’s consider the cost of vaping with a reputable e cigarette brand. We will not consider the cost of the bottom of the barrel brands because the odds are that a cheap ecig will not provide you with a satisfactory alternative to cigarettes. Seriously, don’t buy cheap ecigs.
The average price of a cartomizer from a quality company is $2.70. Each cartomizer is the equivalent of at least 1.5 packs of tobacco cigarettes. That is actually being generous to cigarettes; many brands feature a cartomizer that is closer to the equivalent of 2 packs of tobacco.
So, back to the numbers…
If you smoke 365 packs of cigarettes per year you will replace that with 243 cartomizers. Which will cost $656 per year. That means that a pack per day smoker will save $1900 per year by switching to ecigs.
This varies, of course. In Kentucky, a pack per day smoker will save $1200 per year. In New York a pack per day smoker will save almost $4500 per year. To keep us all on the same page we will stick with the national average, about $2000, a savings that would be a massive boost to the majority of households in the US.
That was the math part of this article, now on to the fun part!
What could you do with an extra $2000 per year?
Are you looking for a new job? With $2000 you could buy a sidewalk coffee cart and bring in $300 to $500 per day. Better yet it could be the beginnings of a coffee enterprise that could someday rival Starbucks! You gotta think big to be big.
By the way, if you are in New York and switch to ecigs, you could save enough money in one year to make a down payment to lease a Tesla electric car. No more toxic tobacco smoke and no more exhaustJ
You could very well convert saving $2000 per year into becoming an entrepreneur and going after your dreams. But for our purposes, we’ll keep it real and talk about the immediate and noticeable benefits of saving that kind of money. A typical family can experience a serious bump in their standard of living if they manage their savings wisely.
How Saving $2000 per Year Can Benefit You And Your Family
Debt is a serious issue plaguing the majority of American households. If you have $2000 in credit card debt that means that you pay at the very least $280 per year in interest. Paying down your debt by $2000 per year will save you a lot of money, especially in interest payments.
If you add $2000 per year to your 401 K, the benefits down the road could be huge. You could add to your financial security for the years when you will need it most. If your employer has a plan that matches or partially matches your 401 K contributions, that’s even better.
Are you trying to save money for your children’s college fund?
If so we have a good news bad news scenario to talk to you about. First we’ll give you the bad news. By 2030 an average 4-year college degree will cost $205,000. Now the good news, if you take that $2000 you will save by switching to ecigs and invest in into an education fund that earns 6% per year, which is a very reasonable expectation, you will be able to save $60,000 for your child’s education. That’s a lot of opportunity that you will be buying for your kids.
That’s enough numbers for today. At the end of the day, saving money creates additional options both for you and your family. I am sure that you have a lot of ideas for what you could do with a boost to your budget. When you make the switch, the savings add up fast.