Whether it is possible, having left off smoking, to become the millionaire?
passed Many years since I listened to audiocourses where the famous western financier taught ordinary people of financial literacy. Then I understood, as itself in many respects did everything as he advised. However I till their time remember one his interesting thought: “Any smoker can become a millionaire if leaves off smoking and will save this money“. Let`s count
whether really it is possible to become the millionaire, having just left off smoking and how many years for this purpose are required.
We will begin with that how many the person in day smokes. I think, it for anybody not a secret. Usually in a day slightly less than one pack, or on one cigarette an hour are smoked. Someone, of course, and on two packs a day buys, but such people of unit.
The cost of a pack of cigarettes averages one - two dollars. Therefore we will take for calculations one and a half dollars for a pack. As a result in a year we will save the following sum:
0,8 packs x 1,5 dollars x 365 days = 438 dollars
If just to put this money under a pillow or in a 3-liter jar, then hardly you will be able to save up the large sum even in 30-40 years. They will depreciate due to inflation. It will be more correct to put them into the deposit account in bank and to receive +8% annually.
Now we will consider what sums we will be able to save up for various terms - for example, in 10, 20 and 30 years - on the deposit account.
438 dollars x 10 years = 4380 dollars
(You will save this sum.) You receive 2473 more dollars in the form of percent on a deposit contribution in dollars in 10 years. Therefore in 10 years on your account the sum of 6853 dollars will collect. Not densely of course, one million here also does not smell.
Now we will count in 20 years.
438 dollars x 20 years = 8760 dollars
A here percent it will be already much bigger as with accumulation of the bigger sum on the deposit and percent will be much more. I consider everything in the table. Every year we multiply all sum of our contribution on 1,08 and we add the next 438 saved dollars. Thus in 20 years we will receive 12887 dollars in the form of percent, and on the account there will be already 21647 dollars. The sum not with six zero, but in the regional center will be enough for purchase of the one-room apartment.
In 30 years the picture will be following.
438 dollars x 30 years = 13140 dollars
in the form of percent on a contribution you receive 40447 dollars. In the sum there will be 53587 dollars. Here how many we could save up in 30 years if left off smoking and saved this money for the bank account. It would be enough for purchase, for example, two apartments for own children that is already very good.
Of course, not to gather million though for interest I can lay out the sums and for longer periods. In 40 years 122 thousand, in 50 years - 271 thousand, in 67 years - 1 million dollars would turn out. Of course, do not live so much and to age in 87 years you will need so much money.
What it would be desirable to tell in conclusion? The example is quite real and if to consider everything at the American prices which are several orders higher than ours, then, having left off smoking in America, in 20-30 years quite really to become the dollar millionaire. Well, and in the CIS countries in 20-30 years without cigarettes it is possible to save up money for two apartments and to resolve a housing issue of the children.
It is too very quite good result for which it is worth striving instead of humouring the smoker the company and to damage the health, enriching producers of cigarettes.