How to Make 1 Crore Rupees by Quit Smoking Today? – Truths & Facts

By GauravSharma
4-January-2019 8:24:07 AM

Smoking Cigarettes is one of the nasty expensive habits that we all regret at some point in our lives. If there is a list of quitting nasty habits then I think smoking cigarettes should be on top of this list. Truth is we don’t realize how much tobacco we’re putting into our body. Not only it affects our overall health but also burn up our finances. But, we also know that. In fact, most of us have already tried to quit smoking in the past. Most of us failed to do is because we lack the proper motivation. If you are in the same situation then I can help with this one.

Have you ever wondered how much you’ve actually spent on smoking cigarettes?


How much it is Costing to Smoke Half a Packet per Day?

If you are a regular smoker who smoked half a packet of cigarettes in a day then you shelled out nearly Rs. 250 per day just on your nasty habit of smoking cigarettes. It is because currently, a packet of cigarettes consist nearly 20 cigarettes which cost nearly Rs. 400-500 per packet. The two hundred fifty rupees per day means Rs. 7500 per month ( 250 x 30 Days= 7500) and about Rs. 90,000 for a year (7500 x 12= 90,000). In perspective, 7500 rupees is nearly one month of rent. But, the reality is, as a smoker, we may not pay our rent on the first of the month, but we will always find a way to smoke that much of cigarettes on monthly basis.  At today’s price if you are spending 250 rupees per day on smoking cigarettes then you will waste nearly around 18,00,000 rupees in 20 years. And with the annual cost of smoking will rise as it risen in past, the amount will be a lot higher.

In short, you will burn nearly around 18 lakh rupees in 20 years on what, “Tobacco”. Not only it is burning you’re finances but also destroying you from the inside. That’s a lot of money to burn, right?

It is such a shame!

Do you know how much you could save if you stopped smoking cigarettes?

What if you quit smoking and take that money to invest in the stock market instead?

Did you get the picture?


Let’s do the calculation now.


How to Make 1 Cr. Rupees from “Smoking” Money in just 20 Years?

There is a common saying, “Health is Wealth”. If you are tired of wasting your money on such a nasty habit that is not only eating your finances but also eating you from the inside then my dear friend it is time to quit smoking. If you have decided to change your life from here on then I would suggest you to better use your precious hard-earned money somewhere better.

Have you ever heard about mutual funds?

Well, that’s a very stupid question. Of course, you heard of it!

Mutual funds have recently gained huge popularity and become one of the top investment avenues in India. If we talk about the average rate of return of mutual funds in India in the last 20 years then it is nearly around 15% give or takes.

I understand if you say that twenty years is a very long time. But, it is not like you only invest those 7500 rupees per month. You can extend your principal amount. Besides, Indian old mutual fund schemes have made its investors millionaires. And systematic investment plan (SIP) is the best investment option for long-term investment and wealth building. Not only you will be able to utilize your “Smoking” money to build your wealth but also bring discipline in your investing, as well as life.

Now come to the point where we discussed making 1 crore rupees in 20 years. I’m sure you will be excited to know how it is possible.

So, let’s do the calculation.

Taking the above example, let’s assume you were spending Rs. 7500 per month on smoking cigarettes which is around Rs. 90,000 a year. In a 20 year period, it would be around Rs. 1,800,000. What if you invest those 18 lakh rupees in the stock market in SIP mutual fund scheme, you can make better use of that money by investing in equity mutual funds or other investment schemes.

If we consider the same 15% in the next twenty years, although this rate of interest should go higher by the time and country’s growth but let’s assume you invested Rs. 7500 every month for twenty years in a SIP mutual fund where you receive the average rate of return of 15% then the total return you will receive after twenty years would be exactly Rs. 11,369,662.31. That amount would be without inflation with the monthly compound frequency.

Now think about it!

Who’s to say that you won’t achieve a better return than this in the next twenty years?

If you do the same you will become a millionaire in just 20 years. The cost of cigarettes may different in your country or area but the rate of return will be the same or higher.  But, still, I would advise you to not invest all your money at once. Also, mutual fund investments are subject to market risk.


Note: The information available within the content is for the educational purpose as well as to give general information on the finance & economy, not ensuring any absolute return, not to provide any professional advice or service. Views & opinions are based on calculations and analysis, not biased against the company and do not affect any official policy or any other agency, an organization within the content.

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