Controlling Vices

Key to building wealth is keeping spending under control. Nowhere is this more necessary than taking control of our vices. What is a vice? While often tied to an immoral act, I’d like to take a more broad definition. A vice is any habit in our life perceived as bad.

Alcohol, tobacco and drug use are probably the first bad habits that come to mind. Gambling probably makes the list as well. But I would assert a vice can be anything we let take control of our lives. Shopping, coffee, eating or gaming are just a few less obvious examples of what many could consider a “vice”.

This blog is not a sermon! Note, I said “control” vices. I’ve had and continue to have my fair share of bad habits over the years. I am very thankful I’ve been able to quit or keep them under control. I think many of us probably fall under the spell of a vice at some point in our lives.

Beyond the often negative mental and physical health aspects, vices drain our personal finances. Living frugally and building wealth is generally incompatible with vices. Completely unscientific assertion, but I doubt many self-made millionaires indulge their habits to excess. We’ve either got to get rid of vices completely or manage them tightly to keep financial goals on track.

If going through a $50 carton of smokes a week, it’s time to quit and put that $200 per month in an investment. I quit messing around with nicotine at age 40, probably 20 years too late by my estimation.

Alcohol use, oftentimes to excess, is pretty common for many of us in our younger years. Especially those of us who served in the military! But excessive alcohol use is unstainable over the long haul. Not only does it take a toll on our well being, it can hold us back financially. Boos are not cheap. Even though it is legal in some states, same goes for recreational drugs.

I know the preceding paragraphs sound a bit naïve. I understand the line between casual user and addict is very thin when it comes to the examples I’ve just covered. Only we know our true selves and the role vices play in our lives.

Addiction is a real problem and many struggle. It is ok to get help if too close to the line! To reiterate, I am not just talking cigarettes, alcohol, drugs and gambling but also any indulgence that has a hold on our daily lives. I have used the service of counselors in the past and am very thankful for the experience.

Vices in excess are not compatible with a frugal lifestyle and building wealth. Tightly controlling or kicking vices helps us live healthier which will ultimately reduce our health care expenses in the long run. Most importantly, it will provide more money each month to spend on actual needs or invest!

Thanks to the magic of compounding and the time value of money, that $200 saved monthly by kicking a carton a week smoking habit grows tremendously! How much, you ask? $200 added monthly to an investment account  compounded at a modest 4% will be worth nearly $75,000 in 20 years!

Next week I’ll shift to some living and leading topics. On October 1st, it will be two years since I retired from the military! Join me as I share some reflections, two years removed from service. 

If you’re interested to learn more about the financial truths that helped guide my family’s finances, check out my new book “Millionaire on a Worker’s Budget: Five Financial Truths to Build Wealth” on sale at Amazon!

The commentary provided in this blog is for informational purposes only and is not intended to be a source of financial or investing advice.

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