How much is one pack of cigarette today? RM17. (or around this number) How many packs do two of my friends; Mr. Gu and Mr. Ha smoke per day? ONE pack. That’s RM17 per day. In a month, that’s roughly RM510. Mr. Gu quit smoking cigarettes last year though and has been successful as at today but he is on vape. The cost of one month refill for the vape? RM120. Okay, it’s way cheaper than cigarettes but should everyone switch to vaping then? When asked why Mr. Ha does not switch to vape, he says the ‘feeling’ is different and the ‘kick’ is different too.
Okay, I rest my case when it comes to convincing Mr. Ha to stop smoking. In financial numbers, that RM510 per month equals to RM6,120 per year. Over 5 years, it will become RM30,600 which is enough for downpayment for a new affordable home! Or even buy a new Proton Saga 1.3 litre. Mr. Ha is still driving his 12 year-old Vios which has started to show its age. Haha. As for property, here’s what happens after you buy an affordable home and pay for it for 30 years.
I do not smoke but I think beyond just cigarettes, there are also many other ‘bad financial habits’ too. Keeping up with the latest smartphone models for example. Another one would be to chase the latest luxury handbag model. Anything below RM500 for a simple wallet is NOT considered luxury yeah. To qualify under the luxury category, please buy something higher priced instead. For handbags, it’s at least RM5,000 or higher…
Okay, our feet deserves a comfortable shoe but there’s already minimal difference between a RM300 shoe versus a RM800 one. The major difference would be the design and the brand which is not categorised as a need yeah. Last but not least may be the food we eat daily. Earlier article here: Eating cheaper is possible. Depends on us, actually. So, we can see that it’s not even just cigarettes which will take a away a lot of what we earn every month.
Before we start to think that savings is the key, well, my friend Mr. Gu has reduced his smoking expenses BUT what he does is beyond that. He has just enough working clothes for a week and does not buy new ones unless it is totally necessary. (I could not follow this as I buy clothes on a monthly basis when I see a nice design at a good price) Whenever opportunity presents itself, Mr. Gu would buy another property. He says that appreciation from money alone is slower than that of a buying a good property.
What could I do currently? I will advise my friend Mr. Ha to reconsider again. Quitting smoking is going to be a good decision for him and his family. Happy stopping smoking and all the unnecessary spendings too.
Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market. Else, follow me on Twitter here.
Next suggested article: Investing should be as exciting as watching the grass grow