When you’re looking to get out of debt it’s important to understand what differentiates the wealthy from the poor and which habits are helpful or harmful.

I just learned that new research shows the the breadwinners in the world’s poorest families (typically the men) spend about 20 percent of their earnings on liquor, cigarettes, prostitution, soft drinks and extravagant festivals. Check out the full story at the New York Times (which I got to via  a piece at Time Magazine’s It’s Your Money blog.)

This got me thinking, and begs the question, what vices are you putting before paying off debt and the financial well-being of your family? (Hopefully it’s not whores.)

Smoking is at the top of the list for things that are terrible for you and your pocketbook. In some areas a single pack of smokes can cost upwards of $10. At those prices a pack-a-day habit runs nearly four grand. A pack a week means adding an extra car payment to your annual expenses. This isn’t a site that offers tips on quitting, but that should be a strong incentive to. New York State (which has some of the highest cigarette taxes in the nation) has a great website with resources to help smokers quit.

Booze can be pricey or cheap, and in recent years Americans have developed a more refined (and pricey) palate. Gone are the days of knocking back Miller or Bud. Now brews like Sam Adams and Heineken are everywhere and at a higher cost. Don’t even get me started on wine. Whether you drink more or less is a personal decision, but what you drink can impact how much you spend by fifty percent or more. If you can live with something from the middle or lower shelf you’ll get the same buzz and get a high from saving money.

As for whore mongering (one of my favorite expressions) you see what it cost Tiger Woods. He’s lost a ton of sponsors, tournament fees and may end up shelling out gazillions in a divorce. But on a related note, spending big bucks to impress members of the opposite sex can still land you in the poor house. Whether it’s clothes, cars, dinners or jewelry you may want to take stock of why you spend money on things to dazzle that guy or gal when your bum credit score will still be a real turn-off if things get serious.

Now I don’t know if you spend much money on those extravagant festivals that the article mentioned, but if you do, cut that crap out. You are still allowed to air your grievances against credit card companies during Festivus.

All of this is just food for thought, and a good excuse for me to use the word “whores” in a blog post. Always wanted to do that.

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