9 Vices That Are As Bad for Your Wallet as They Are For Your Health

Visits to coffee shops or fast-food places aren’t the end of the world, but they can cost us in ways we don’t always notice. In addition to affecting our health, our bad habits can take a toll on our savings accounts and budgets.

Having vices is normal, but they can turn into big money mistakes when we let them control our lives. Although most things in moderation are absolutely fine, becoming aware of their effects on your life and budget can be eye-opening.

Here are some of the most expensive vices we encounter in our everyday lives and the incredible amounts we spend on them.

1. Smoking

Potential cost: $1,825 per year

Smoking has been on the decline for several years but is still a vice for many Americans. Although cigarette sales declined in 2023, the industry still raked in over $82 billion in the U.S., and while e-cigarette use might have plateaued, it remains a significant market.

According to the CDC, in 2023, packs of cigarettes ranged in price from around $5 to over $13, depending on the state. If you only purchase a pack a week at the lower end, that's still over $260 a year. If you smoke a pack a day, that's more than $1,825 annually.

Meanwhile, vaping remains popular, and so does the cost. The National Center for Biotechnology Information estimates that some vapers spend around $250 a month, with the average being between $50 and $75. That translates to an annual cost of $600 to $900.

2. Alcohol

Potential cost: $1,400 per year

A few adult beverages with friends now and then or to celebrate a significant milestone with your partner isn't a bad thing, but some of us take our happy hours a little too far.

According to recent data from the Bureau of Economic Analysis, in 2021, Americans spent an average of $1,369 per person on alcoholic beverages. A

dditionally, a CDC report estimates that excessive drinking costs taxpayers hundreds of billions of dollars annually in lost productivity, healthcare costs, and legal fees. It's also responsible for tens of thousands of deaths each year.

Even having a moderate two drinks a week can cost anywhere between $10 and $30, depending on what you order. That becomes $40 to $120 a month, or up to $1,440 per year.

Instead of spending that money on drinking, that amount would give you a nice head start on your emergency fund or help put a dent in your student loan or credit card debt .

3. Gambling and lottery tickets

Potential cost: $129.46 per year on lottery tickets alone

When we think of gambling, many of us probably think of slot machines, Las Vegas, and card games. But gambling comes in many forms, including lottery tickets, sports betting, raffles, or even bingo games.

Not all gambling involves a night at a casino, but it can be just as costly. In 2022, Americans spent an average of $67.71 per person on lottery tickets, while people between the ages of 65 and 74 spent almost double that ($129.46).

According to Wonderopolis, a department of the National Center for Families Learning, the standard odds of winning the lottery is 1 in 14 million, so you’d be better off saving or learning how to invest money .

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4. Retail therapy

Potential cost: $1,812 per year

Indulging in a bit of retail therapy can be a fun distraction when you’re having a tough day, but all those stress purchases can quickly add up.

According to a survey commissioned by Slickdeals, as of 2023, Americans are spending an average of $151 per month on impulse purchases. If this behavior were to continue consistently throughout the year, it would amount to a total of $1,812 annually.

As you think about how to manage your money better, try sticking to a shopping list or removing your credit card information from online shopping portals so you have to type it in manually to make a purchase.

5. Fast food

Potential cost: $936 per year

Approximately 36% percent of Americans eat fast food on any given day, and we eat out one to three times per week. When we go to fast-food restaurants, we also probably spend more than the average cost of $6 per meal.

That may not seem like very much, but when you multiply out all those drive-through visits, you could be paying up to $936 a year even at the average meal cost.

If we’re looking for how to save money and improve our health, cutting down on dining out, especially at fast-food establishments, can be a great way to make some changes.

6. Soda

Potential cost: $615.60

Soda seems relatively harmless in the financial sense of things, but it can take a significant toll, both on our health and our wallets.

Using myself as an example, last year I was drinking three to four 12-ounce sodas a day, almost every day. My local grocery store has an eight-pack of 12-ounce bottles of my preferred brand for $4.49 plus tax, or roughly 57 cents a bottle.

Three of those a day is only $1.71, but that meant that every month I spent $51.30 just on sodas. That comes out to me spending $615.60 every year on something that’s not doing anything for my health or my wallet.

Now, did I give up all soda forever after working out the math? No, but I did cut back, and both my waistline and savings account are much happier.

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7. Speeding

Potential cost: $135 per ticket

Speeding can be tempting when we’re in a hurry, but having a lead foot can cost you a lot of money.

The cost of a speeding ticket varies based on the state you live in and how fast you are going, but it could range anywhere from $20 in Oklahoma to $135 in Colorado for going up to 15 mph over the posted speed limit.

And not only do you have to pay the cost of the ticket and any relevant court costs, but your auto insurance rate is also likely to increase.

According to the Insurance Information Institute, speeding is also the leading behavior associated with fatal crashes (17.2%).

So the best way to save money on car insurance might just be to slow down.

8. Coffee

Potential cost: $871-$1,027

Daily coffee can be a fun treat on your way to work or a needed pick-me-up on a rough day.

At Starbucks, a medium Cafe Americano costs $3.35 to $3.95, depending on the part of the country you’re in. If you make that purchase every workday, you’re looking at $16.75 to $19.75 per week coming out of your budget. That’s $871 to $1,027 a year for your plain cup of joe or even more for the fancy seasonal drinks.

If you need a pick-me-up, consider making your coffee at home and bringing it with you. It’s much less expensive, and you also get to control what you put in it.

9. Beauty and hair care

Potential cost: $1,200

Although looking as good as we feel is important to many of us, it’s also essential to remember that beauty tends to come with a hefty price tag. In 2019, Americans spent $786 on salon visits, manicures, and grooming supplies, and some of us spent much more than that.

If you’re someone who feels compelled to get a manicure or pedicure every couple weeks, you could be looking at spending $50 to $100 per month (the broad price range of a basic manicure is $20 to $50, and $35 to $40 for a pedicure) and that expense can go up based on the services requested.

With that kind of cost, you’re looking at spending $600 to $1,200 per year on just your nails alone.

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How to live healthier without spending a ton

So after seeing how much you could be saving by giving up or cutting back on your favorite vices, how about a bit of good news? Living healthy doesn’t have to be expensive.

Here are some tips to help you offset the cost of some of the habits above and help you start developing the habit of saving.

Use a credit card that earns rewards

A rewards credit card allows you to earn on your routine purchases, such as groceries, gas, or other essentials, and that puts money back in your wallet or earns you points toward travel.

Make sure you pay off your balance in full every month; otherwise, the interest will negate any cashback or travel benefits.

Use a cashback shopping app

Easy-to-use-apps such as Ibotta or Drop help you find the best prices available and earn some cash. Check out our list of the best money saving apps to learn more.

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Challenge yourself to abstain

Try not partaking in one of the vices listed above for a month (or longer). Open a high-yield savings account and put all the money you save into that account.

Check out our list of the best savings accounts to get an idea of the perks and interest rates these accounts offer.

Try putting an indulgence tax on your purchases

Instead of abstaining completely from your favorite vice, you could put the same amount that you spend on your purchase into your savings account.

For example, if I buy a cup of coffee for $5, I would put $5 into my savings account as well, essentially taxing myself for indulging. If your budget can handle it, you can enjoy your habit on occasion while still building up your savings.

Bottom line

None of these habits are inherently wrong (except maybe speeding), but doing them to the point that they severely impact your financial life and/or health may make them border on vice territory.

You might find that an experiment in which you go 30 days without your favorite coping mechanism leads you to healthier options or, at the very least, makes you more mindful when you choose to indulge.

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).