How much do you spend on coffee, cigarette’s & alcohol?

There?s no doubt that a few well-chosen vices can add a great deal of enjoyment to life. The cost of some vices, however, should not be underestimated. CANSTAR?s analyst team have crunched the numbers on three common and sometimes guilty pleasures to determine their potential lifetime cost. The team have assumed that, from age 25 to 60, the money that would have been spent on the vice will instead be contributed into a superannuation fund, earning an annual return of 7%. Their calculations are as follows.

How much do people spend on coffee?

Coffee as a viceMmmm, coffee. Those who really love their coffee will probably love it at any price – however it?s worth knowing that the 5-per-week $4 coffees could, over your lifetime, mean around $144,000 less for your retirement nest egg. Perhaps the work-provided espresso machine could be endured after all?

Price of coffee per weekday

$4

Savings per month

$80.00

Current Age

25

Retirement age

60

Years Left

35

months

420

Interest

7%

Future value in retirement

$144,084.37

How much do people spend on Cigarettes?

Smokes as a viceApart from future health and well-being costs, a smoking habit can also seriously erode your retirement savings. Based on our calculations, a two-pack-a-week habit can make around $216,000 difference to your future wealth. If quitting for your health is too difficult, try quitting for your hip pocket instead.

Cost of 2-packs of cigarette per week

$30

Savings per month(assuming 5 per week)

$120.00

Current Age

25

Retirement age

60

Years Left

35

months

420

Interest

7%

Future value in retirement

$216,126.55

How much do people spend on alcohol?

Alcohol as a viceAustralian adults drink around 10 litres of pure alcohol per person, per year. That puts us well into the top global quartile in terms of alcohol consumption. We all know that drinking can be an expensive habit – but it?s worth noting that just one case of beer per month could potentially equate to around $90,000 less in retirement savings.

Cost of one carton of beer per month

$50

Savings per month

$50.00

Current Age

25

Retirement age

60

Years Left

35

months

420

Interest

7%

Future value in retirement

$90,052.73

The message isn?t necessarily to give up all your vices – but to be aware of the potential future cost – and to perhaps choose fewer or less expensive habits.

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