Today in class we discussed the significance of OPPORTUNITY COST. My partner and I decided to look into the opportunity cost of smoking cigarettes.
In Singapore, a pack of 20 cigarettes can cost between S$10 to S$13.50.
Most smokers consume 11-20 sticks per day. Assuming you smoke one pack of 20’s daily, every week:
1 pack of cigarettes * 365 days in a year = S$4,927.50 OR S$49,275.00 in 10 years.
If you stop smoking, you can save up to S$4,927.50 a year.
Savings: $410.63 per month
Future Value after 10 years of investment: $74,093.78
Opportunity cost:
Giving up smoking (addiction) = Gaining money to use for investments WHILE helping your health.
Smoking often = health issues = $$$$$$$
S$4,927.50 can translate to:
4 iPhone 6
912 Starbucks Cappuccino
703 Big Mac Meals
410 movie tickets
492 pints of beer
3,406 train rides
2 months of renting a 1-bedroom apartment
With that much money, you can also:
Invest in stocks, bonds, mutual funds, and the like
Put the money into your retirement fund
Use it for emergency savings
Finance the ultimate vacation
Put your children through school
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