Are your habits costing your savings?

We are now one month into the new year, are you all keeping up with your New Years Resolutions? Or maybe you haven’t made any? Now could be a good time to make one.

Today I am going to talk about habits, and how much these habits cost us. These habits could be anything like smoking, having a drink every evening, or getting a takeaway every weekend.

These habits are not only harmful for your health, but also your financial wellbeing. Take smoking for example. One pack of cigarettes is about €13.50. Let’s say that “person 1” is smoking 5 packs a week. This would mean that every week they are spending €67.50 per week on cigarettes. If they made a resolution to quit smoking, not only would it improve their overall health, but they would save €3,510 every year. In five years time this amounts to a saving of €17,550. This would make a nice sum towards a deposit for a house. Perhaps you would like to buy a new car or go on a luxurious holiday? Quitting one bad habit and saving the equivalent of your spending can mean you reaching your financial goals very easily.

Now take “person 2”. This individual gets a takeaway every Saturday and Sunday. We will put an estimate of around €13 on each takeaway. That is €26 per week. By cutting this habit, you could save €1,352 a year. After five years of saving this sum, “person 2” could have €6,759.60. Even if you only reduced your takeaway spending by half, to have one at the weekend, you could still save approximately €3,379.80 over five years.

Look at your habits. What is one big spend that you could do without? Work out how much a year it is costing you. What could you achieve with this money instead?

If you are interested in saving, we would be delighted to discuss your options with you. Don’t hesitate to get in touch. What could your money do for you instead?