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.