If you quit smoking, how fast could you pay down your mortgage?

Smoking is a difficult habit to quit but there are some powerful motivators to do so. For some, it’s the wish to live a healthier, longer life. For others, it’s the importance of being a role model for their children. Many end up quitting because of the huge day-to-day cost of smoking. 

The financial cost of smoking

Cigarettes are expensive and getting more so every year as the government adds taxes on. The realisation of how much they are spending on cigarettes in a month is enough to make some people quit immediately.

If you think you might be that type of person, we’ve created a little calculator below for you.  The only information you need is:

  • your mortgage amount and interest rate and,
  • how many cigarettes you smoke per day

The form will show you how much you can save on a 30 year mortgage if you quit smoking and put that money onto your mortgage payments.  The field you should be most interested in is the last one.  That will be how much extra interest you have saved – how much money you now have for retirement – by quitting.

This form is not about shame.  Smoking is a hard habit to quit.  It is about finding the one thing that gives a smoker the resolve to quit.  If it is the potential to save money and retire earlier, this is the form for you.

If you’re looking for support with giving up smoking, check out Quitline for helpful resources.

One further financial benefit from quitting smoking

Remember, if you were a smoker when you started your life insurance, contact your life and health insurance adviser once you have stopped for 12 months. You’ll be rewarded with savings on your insurance premiums! If you don’t have an insurance adviser, our in-house adviser can help you get your insurance in shape.

Join over 10,000 other people receiving our latest articles!

Mortgage Lab’s mission is to be the digital town square for financial decision-makers to gain knowledge about their current and future mortgage. Follow us on Facebook and LinkedIn or subscribe to our newsletter to be notified of our latest articles.

Related Articles

3 things to do now to prepare for a recession

We are entering an unprecedented time.  The Reserve Bank has announced an Official Cash Rate increase from the historic low of 0.25% up to 2%.  Some economists expect a recession…

Read More

If you’ve ever watched one of the Mortgage Lab’s webinars or Facebook livestreams, you will most likely have heard us rave about this app.  It’s one of our favourites –…

Read More

This article is current as of 1 September 2021 It’s Covid-19 lockdown déjà vu for New Zealand. While most of the country is now at level 3 Auckland will remain…

Read More

How Do I Calculate Yield?

When you’re looking for an investment property, you are often either looking for capital growth or yield. Yield is the income you receive in rent, ideally giving you a positive…

Read More