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Don't Burn Your Money on Tobacco! Invest It Wisely for a Brighter Future
Piyush Prajapati 31 May, 2023 ( World No Tobacco Day )

Don't Burn Your Money on Tobacco! Invest It Wisely for a Brighter Future

Transform Tobacco Expenses into Financial Growth

In today's fast-paced world, making smart financial choices has become more important than ever. One area where many individuals unknowingly waste a significant amount of money is on tobacco. Not only does tobacco harm your health, but it also burns a hole in your wallet. Instead of letting your hard-earned money go up in smoke, why not invest it wisely for a brighter future? In this blog, we will compare the benefits of wasting money on tobacco versus investing the same amount in a Systematic Investment Plan (SIP) over a period of 5 years. We'll assume a monthly investment of ₹6,000 and a consistent rate of return for the SIP.

First, let's calculate the potential benefits of wasting ₹6,000 per month on tobacco over 5 years:

Year Monthly Tobacco Expense (₹) Total Annual Expense (₹) Total Expense (₹)
1 6,000 72,000 72,000
2 6,000 72,000 1,44,000
3 6,000 72,000 2,16,000
4 6,000 72,000 2,88,000
5 6,000 72,000 3,60,000

Over 5 years, spending ₹6,000 per month on tobacco will result in a total expense of ₹3,60,000.

Now, let's calculate the potential benefits of investing ₹6,000 per month in an SIP over the same 5-year period. Assuming an average annual return of 12%, here's the table:

Year Monthly SIP Investment (₹) Total Annual Investment (₹) Total Investment (₹) Returns (%) Total Value (₹)
1 6,000 72,000 72,000 12% 80,640
2 6,000 72,000 1,44,000 12% 1,61,280
3 6,000 72,000 2,16,000 12% 2,41,920
4 6,000 72,000 2,88,000 12% 3,22,560
5 6,000 72,000 3,60,000 12% 4,03,200

After 5 years, investing ₹6,000 per month in an SIP with an average annual return of 12% would result in a total investment of ₹3,60,000. The returns earned would be 12% per year, resulting in a total value of ₹4,03,200.

By choosing to invest in an SIP instead of wasting money on tobacco, you would end up with a total value of ₹4,03,200 after 5 years, compared to spending ₹3,60,000 on tobacco. This shows the potential benefit of investing in an SIP over wasting money on tobacco.

Piyush Prajapati 06 April, 2023 (World No Tobacco Day)

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