How to Turn Cigarettes into Money

Starting Your Journey

Taking the first step toward saving and investing can feel overwhelming, but it doesn't have to be. You don't need to be wealthy or have a finance degree to begin building a better financial future. Every small step counts, and you're already ahead of the game by being here.

Let's break this down into simple, manageable steps that anyone can follow.

Start Saving (The Foundation)

Decide How Much to Save

The beauty of using cigarettes as your starting point is that you can begin as small or as big as you want. There's no wrong answer—any amount you save is progress.

Start Where You're Comfortable

Beginner approach: Save the money from just 2-3 cigarettes per week. That's maybe $3-5 to start.
Gradual approach: Cut back by half. If you usually smoke 14 cigarettes a week, try 7 and save the rest.
Bold approach: Commit to saving money from all cigarettes for certain days (like weekends only).

Where to Put Your Savings

Start simple. Open a separate savings account at your bank and call it your "Freedom Fund" or "Future Fund." This keeps your savings separate from your everyday spending money.

💡 Pro Tip

Set up an automatic transfer. Even if it's just $20 per month, automating it means you don't have to remember or make the decision each time.

Track Your Progress

Keep it simple—write down your weekly savings in a notebook or use your phone's notes app. Seeing your progress builds momentum and keeps you motivated.

Start Investing (Advanced - When You're Ready)

Advanced ▼

Note: Only consider investing after you have some money saved and feel comfortable with the basics. This isn't a race—take your time.

Why Invest?

While a savings account keeps your money safe, investing has historically helped money grow faster over long periods. The stock market has averaged about 7% returns per year over many decades, though it goes up and down in the short term.

🎯 Reality Check

Investing involves risk. Your money can go down as well as up, especially in the short term. Never invest money you might need within the next few years, and never invest money you can't afford to lose.

Getting Started with Vanguard ▼

Vanguard is one of the most respected investment companies, known for low fees and simple options perfect for beginners. Don't worry if this feels overwhelming—we'll break it down into simple steps that anyone can follow.

👆 Click here to see the step-by-step Vanguard setup guide

Step 1: Open Your Account
Go to the account open page and click "Open an account"

Step 2: Choose Account Type
Under "Individual Brokerage", select "Open account" (we focus on Individual Brokerage only to get started quickly but their other accounts are good too, more details on those in the future!)

Step 3: Complete Registration
You'll need your Social Security number and basic personal details to complete the process. Vanguard is one of the biggest, pro-user, and securest brokerages out there so you can trust them.

Step 4: Link Your Bank Account
Before you can transfer money, you'll need to connect your bank account to Vanguard. This is completely secure and allows you to move money back and forth easily.

• Go to your bank accounts page (or navigate there from your account)
• Click "Add a new bank account"
• Follow the prompts to securely link your bank

Step 5: Add Money to Your Account
Once your account is open, you'll want to transfer money from your bank. Remember, you can start with as little as $1—there's no pressure to invest a large amount right away.

• Click the "Transact" tab at the top
• Click "Transfer cash"
• Click "Deposit to my Vanguard account"
• Select the brokerage account you just created
• Select your linked bank account to withdraw from
• Enter the amount you'd like to transfer (can be as low as $1!)

Step 6: Make Your First Investment
We recommend starting with VTI (a simple, low-cost fund that owns a bit of the entire stock market). Here's how to buy it:

• Click "Transact" tab at the top
• Click "Buy & sell"
• Click "Trade ETFs & stocks"
• Select your Brokerage account
• In the "Symbol" box, enter "VTI" and select it from the list
• Make sure "Buy" is selected
• Change "Amount type" to "Dollars"
• Enter your investment amount (minimum $1)
• Review everything and click "Preview order"
• If it looks right, click "Submit Order"

⚠️ Important Reminders

Only invest money you won't need soon
Start small until you understand how you feel about market ups and downs
Never invest based on tips from social media or friends

Stay Consistent and Patient

Make It a Habit

The magic isn't in perfect execution—it's in consistency. It's better to save $10 every week for a year than to save $100 once and then stop.

Expect Ups and Downs

Some weeks you might not save anything, and that's okay. Life happens. If you're investing, some months your account might go down, and that's normal too. The key is to keep going when you can.

Celebrate Small Wins

When you hit your first $100 saved, celebrate it. When you hit $500, $1,000, or whatever milestone matters to you—acknowledge how far you've come.

You're Already on the Right Path

By reading this, you've taken the first and most important step: deciding that your future matters. Every person who's achieved financial independence started exactly where you are now—with a single decision to begin.

You don't need to do everything at once. Start with saving, get comfortable with that, and then consider investing when you're ready. This is your journey, and you get to decide the pace.

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Important Disclaimers

This information is for educational purposes only and is not personal financial advice. Everyone's situation is different. Consider consulting with a qualified financial advisor for advice specific to your circumstances.

Investment returns are not guaranteed, and you may lose money. Past performance does not predict future results. The 7% average return figure is based on historical stock market performance and should not be considered a guarantee of future returns.