How Much Money Can You Save and Invest by Quitting Smoking


Quitting smoking is often considered a wise health decision, but have you ever considered the significant financial implications? If you decided to save the money you usually would spend for smoking, you could save up quite a lot of it.

So in this article, we want to delve into the exact figures that outline how much money you could save each year by kicking the habit. Furthermore, we’ll explore how these savings can compound over time if invested wisely, based on various options and average interest rates.

Let’s get started!

Cost of smoking

So, let’s start with the cost. When people consider the impacts of smoking, the focus often leans heavily towards health consequences. While the health implications are undoubtedly severe, ranging from respiratory issues to an increased risk of cancer, the financial burden of sustaining a smoking habit is frequently overlooked.

In a world where financial stability is sought after, understanding the monetary impact of smoking can offer another compelling angle to inspire cessation. This consideration becomes even more crucial when you factor in the rising costs of cigarettes due to increased taxes and regulatory measures.

So let’s break down the financial commitment that comes with smoking. Let’s see what you’re really signing up for when you light up that cigarette.

Annual cost of smoking

For the sake of this article we will assume a pack of cigarettes costs €5, and one pack lasts you two days.

In that case your smoking habit would equate to:

  • €5 per 2 days
  • €5 * (365 / 2) = €912.5 per year

The expense doesn’t stop at nearly €1,000 each year. This figure is a conservative estimate, excluding other associated costs such as lighters, ashtrays, or potential healthcare expenditures down the line.

As you’ll see, the fiscal implications of smoking can be just as eye-opening as the health risks.

Annual savings from quitting smoking

Now that we have an idea of what smoking can cost you annually, let’s flip the narrative. 

How much would you save each year if you quit?

If you quit smoking, you could save €912.5 each year, which you could use for other beneficial endeavors. Consider this – a weekend getaway, contributing to a savings fund, or investing in personal development courses.

The options are endless, and the savings are immediate.

quitting smoking

Long-term savings – the 20 year projection

While short-term gains like annual savings are certainly attractive, the true financial marvel unveils itself when you adopt a long-term perspective. The power of saving and investing over an extended period can be transformative, not just padding your bank account but fundamentally altering your financial landscape. 

In this section of the article, we’ll take a deep dive into what 20 years of not smoking could mean for your pocket. 

We will also find out why adopting a long-term view could be the pivotal decision that elevates your financial future.

1. The pure savings aspect

Let’s start by looking at the straightforward savings. As we established earlier, quitting smoking could save you €912.5 per year. Over 20 years, without accounting for any investment returns or inflation, you would save €912.5 * 20 = €18,250.

This amount alone could pay for a brand new car, multiple lavish vacations, or even a down payment on a property. But what if you don’t just save this money? What if you invest it?

2. The investment angle

Now imagine investing this money every year. Better yet, consider investing it every month, breaking down the €912.5 annual savings to around €76 per month. 

And the sooner you invest, the more time your money has to grow due to compound interest.

3. Deferring investments – monthly vs. weekly

You might wonder whether to save and invest this amount monthly or even break it down to a weekly investment. While monthly investments align better with typical salary schedules and make it easier to manage, weekly contributions can provide a slight edge due to more frequent compounding.

For example, €76 per month translates to about €17.5 per week. By investing weekly, your money starts working for you sooner. 

However, the administrative effort and transaction costs could offset these marginal gains. So you’ll need to decide based on convenience and specific investment options.

4. Encouraging long-term thinking

The allure of long-term investing is not just in the accumulated sum but in the discipline and financial wisdom it instills. 

And this isn’t just about quitting smoking – it’s about seizing control of your life, adopting a future-oriented mindset, and acknowledging that every decision you make today echoes into your future.

Just picture this. 20 years of consistent saving and investing can significantly contribute to your retirement fund or become a financial safety net for you and your family. 

This money isn’t just numbers on a screen. It’s years of financial security, opportunities for further investment, and perhaps even an earlier retirement.

5. A transformative decision

Let’s frame it this way: quitting smoking is not merely an act of personal health; it’s a long-term investment in your future self. While health benefits are immediate and crucial, the financial freedom you gain can be life-changing. 

This is not merely about avoiding expenses,  it’s about redirecting those funds into something that can grow and offer you a quality of life you may not have thought possible.

Long-term thinking isn’t just a financial strategy. It’s a philosophy that can be applied across various facets of life. By deciding to quit smoking and invest the money saved, you’re not just enhancing your health. You’re investing in a more prosperous, secure future for yourself and potentially your loved ones. 

So, take the leap and make a decision today that your future self will thank you for!

quitting smoking saving money

Where to invest your savings

In our previous sections, we’ve established how much you can save by quitting smoking. But let’s not let that money sit idle. Instead, let’s make it grow.

Let’s delve into specific types of investments you can consider for your savings. These options have different risk profiles, return expectations, and liquidity features. So it’s important to understand what best suits your financial needs.

Stock market

Investing in the stock market involves buying shares of companies. There are multiple ways to go about it: you can buy individual stocks, mutual funds, or Exchange Traded Funds (ETFs).

Here are the benefits:

  • High returns – of all the listed investment types, the stock market potentially offers the highest returns.
  • Liquidity – stocks are generally quite liquid, meaning you can easily sell your investment.

Here are the risks:

  • Volatility – the stock market can be volatile, which means you can also lose money.
  • Requires knowledge – effective stock investing requires an understanding of the market, which could be a steep learning curve for some.

The stock market offers returns between 7% and 12% per annum, although this varies greatly depending on various factors such as market conditions and investment strategies.

Real estate

Real estate investment involves purchasing property to earn a return either through rental income, the future resale of the property, or both.

Here are the benefits:

  • Stable investment – real estate is often considered less volatile than stocks.
  • Tangible asset – you’re investing in physical property, which has intrinsic value.

Here are the risks:

  • Lack of liquidity – it’s not easy to quickly sell property without potentially taking a financial hit.
  • High upfront costs – real estate investing often requires a significant initial investment, which might not be feasible with just the savings from quitting smoking.

Typically, real estate offers an annual return of 4-8%, depending on the property location, type, and market conditions.

Peer-to-peer lending

This involves lending your money to individuals or small businesses online. Peer-to-peer (P2P) lending platforms match lenders with borrowers and usually offer higher returns than traditional banking products.

Here are the benefits:

  • Higher interest rates – compared to traditional savings accounts or CDs, P2P lending often offers higher returns.
  • Lower entry threshold – you can start with a relatively small amount of money.

Here are the risks:

  • Credit risk – you’re exposed to the risk that the borrower will default.
  • Lack of regulation – the P2P lending market is not as tightly regulated as other investment avenues, adding an element of risk.

For peer-to-peer lending, you can expect an annual return between 5% and 9%.

Which investment offers the highest returns?

Based on the approximate annual returns, the stock market tends to offer the highest potential returns, but it comes with increased volatility and risk. 

Peer-to-peer lending and real estate offer moderate returns but have their own sets of risks and benefits. 

To aim for a 10% return as suggested by NetCredit, the stock market would be your best bet, but it’s essential to assess your risk tolerance and investment horizon.

investment options

Compounding the investment

Let’s see what happens when you commit to quitting smoking and start saving all that money. 

The 5-Year Plan

We’re now diving into the fascinating world of compound interest, focusing on a 5-year plan where you invest your savings.

If you invest €912.5 every year with a 10% annual return, at the end of 5 years you will have €6,948.67. Thats the Future Value of your investments.

Future Value formula = P(1+r)^t where P – yearly investment, r – return, t – time in years.

Future Value of first years investment after 5 years = €912.5∗(1+0.10)^5 = €912.5∗1.61051 = €1,470.21.

And that’s just for the first year’s investment. If you continually invest €912.5 each year, you will have around €6,948.67 at the end of the 5 years. This sums up from every year investment and its return:

  • First year €1,470.21
  • 2nd year €1336,99
  • 3dr year €1214,54
  • 4th year €1104,13
  • 5th year €912,5

Future investment –  20 year plan

The magic of compound interest grows exponentially when given more time. What happens when we look at a 20-year plan?

If you invest your annual savings of €912.5 each year for 20 years at a 10% annual return, the future value of your investments will be around €57,235.87. This is significantly greater than the linear saving of €18,250!


By understanding each type of investment in detail, you can make an informed decision on where to put your savings from quitting smoking. 

Investing allows your money to work for you, but it’s crucial to weigh the benefits and risks carefully to match your financial goals and risk tolerance.

To stay on a healthy kick, check out our other articles such as:

Let’s stay healthy and save some money along the way!

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