Darn that's pretty sad, add to the fact that how can you blow all that money... On blow? I can't even imagine what $5,000,000 worth of drugs even looks like, let alone how it could all be consumed by 1 (a few) people...
I was interested in seeing how drastically a drug addiction affects your finances directly, so I did some math.
Let's start here:
"Some doctors estimate that 1.2 grams of cocaine, when used orally, and 750-800 milligrams, when used intravenously or by inhaling, is fatal. It is unknown how much cocaine is fatal when sniffed. (Source: Cocaine Vraagbaak, Federatie van Instellingen voor Alcohol en Drugs, 1986). A user sniffs 0.1-0.2 grams of cocaine, i.e., 2-4 lines a night."
Using this research, lets assume that a cocaine addict uses the max (1.2 grams) every single day. They can't use more because it will kill them.
Then, let's assume that he purchases 5x that to accommodate for his entourage and "cocaine parties". That means he purchases 6 grams of cocaine a day.
Using a quick internet search, the conclusion is that a gram of coke will cost you $60 to $80. Obviously a lot less if you order in bulk, but for our purposes we'll assume that the individual pays $80 per gram.
Therefore, the daily spend on cocaine is:
6 grams x $80 = $480
Annually, that's $175,200.
Assuming a 60-year life span as an addict (let's be honest, you won't live past 80 with a coke addiction), that means that you'll need $10.152 million for your cocaine addition until you die. Using a 3% interest rate, and annual annuities, you need to set aside $4,848,758.75 to be set for life. This is assuming that you're consuming the max before overdosing, and buying for 4 other people that are near overdosing everyday.
If you're buying an amount that the average addict sniffs (0.2 grams), and ignoring your entourage, then your expenses are as follows:
0.2 grams x $80 = $16.
Therefore: $16 / $480 = 1/30th.
1/30th x $4,848,758.75 = $161,625 to be set for life.
Think about that. An I-Banker whose life goal is to be a cocaine addict can do that on less than 1 year's savings!
So in conclusion: It's not the drug expense that makes you go broke. It's the mindset that makes you do drugs, and inevitably the altered decision making. Those two elements combined create a recipe for disaster.
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