$5 X 365 = $1,825 (five bucks a pack/day for a year)
$1,825 X 51 = $93,075
I have no idea how much a pack costs in South Carolina but, even if you go to $20/pack you’re nowhere close.
Go here (or any of a huge number of sites that do the same) and enter your $150 a month for 51 years at whatever rate you think you’ll make if you invest all the smoke money. 2% is bad, 5% is conservative, 8% is more realistic. You will be stunned by what simple compound interest does in 51 years with what you thought was just $93,000.
It’s enough to make you stop smoking yesterday.
The 2 million lost over a lifetime assumes that you invest the money that would have been spent on cigarettes in an account that earns 7 percent per year compounded annually.
Here is a simple chart
,
YEAR
,
Beginning of Year
,
annual deposits
,
interest
,
End of Year balance
1 0 + 3650 x 1.07 = $3,905.50
2 $3,905.50 + 3650 x 1.07 = $8,084.39
3 $8,084.39 + 3650 x 1.07 = $12,555.79
4 $12,555.79 + 3650 x 1.07 = $17,340.20
5 $17,340.20 + 3650 x 1.07 = $22,459.51
6 $22,459.51 + 3650 x 1.07 = $27,937.18
7 $27,937.18 + 3650 x 1.07 = $33,798.28
8 $33,798.28 + 3650 x 1.07 = $40,069.66
9 $40,069.66 + 3650 x 1.07 = $46,780.04
10 $46,780.04 + 3650 x 1.07 = $53,960.14
11 $53,960.14 + 3650 x 1.07 = $61,642.85
12 $61,642.85 + 3650 x 1.07 = $69,863.35
13 $69,863.35 + 3650 x 1.07 = $78,659.28
14 $78,659.28 + 3650 x 1.07 = $88,070.93
15 $88,070.93 + 3650 x 1.07 = $98,141.40
16 $98,141.40 + 3650 x 1.07 = $108,916.79
17 $108,916.79 + 3650 x 1.07 = $120,446.47
18 $120,446.47 + 3650 x 1.07 = $132,783.22
19 $132,783.22 + 3650 x 1.07 = $145,983.55
20 $145,983.55 + 3650 x 1.07 = $160,107.90
21 $160,107.90 + 3650 x 1.07 = $175,220.95
22 $175,220.95 + 3650 x 1.07 = $191,391.91
23 $191,391.91 + 3650 x 1.07 = $208,694.85
24 $208,694.85 + 3650 x 1.07 = $227,208.99
25 $227,208.99 + 3650 x 1.07 = $247,019.12
26 $247,019.12 + 3650 x 1.07 = $268,215.95
27 $268,215.95 + 3650 x 1.07 = $290,896.57
28 $290,896.57 + 3650 x 1.07 = $315,164.83
29 $315,164.83 + 3650 x 1.07 = $341,131.87
30 $341,131.87 + 3650 x 1.07 = $368,916.60
31 $368,916.60 + 3650 x 1.07 = $398,646.26
32 $398,646.26 + 3650 x 1.07 = $430,457.00
32 $430,457.00 + 3650 x 1.07 = $464,494.49
33 $464,494.49 + 3650 x 1.07 = $500,914.61
34 $500,914.61 + 3650 x 1.07 = $539,884.13
35 $539,884.13 + 3650 x 1.07 = $581,581.52
36 $581,581.52 + 3650 x 1.07 = $626,197.72
37 $626,197.72 + 3650 x 1.07 = $673,937.06
38 $673,937.06 + 3650 x 1.07 = $725,018.16
39 $725,018.16 + 3650 x 1.07 = $779,674.93
40 $779,674.93 + 3650 x 1.07 = $838,157.67
41 $838,157.67 + 3650 x 1.07 = $900,734.21
42 $900,734.21 + 3650 x 1.07 = $967,691.11
43 $967,691.11 + 3650 x 1.07 = $1,039,334.98
44 $1,039,334.98 + 3650 x 1.07 = $1,115,993.93
45 $1,115,993.93 + 3650 x 1.07 = $1,198,019.01
46 $1,198,019.01 + 3650 x 1.07 = $1,285,785.84
47 $1,285,785.84 + 3650 x 1.07 = $1,379,696.35
48 $1,379,696.35 + 3650 x 1.07 = $1,480,180.59
49 $1,480,180.59 + 3650 x 1.07 = $1,587,698.73
50 $1,587,698.73 + 3650 x 1.07 = $1,702,743.15
Every day I see people at the local convenience store dropping 5 to 10 bucks on lottery tickets. Same people all the time. If they put that same 10 dollars away in a savings account and once they have saved 1500 bucks they should invest it in a good S&P 500 index fund from vanguard at the next market drop. Then if they deposit the money they spend on booze, cigarettes, dinning out. etc. into the index fund, this is what they’d have after 50 years. That’s only 10 dollars per day.
Once you get a couple hundred thousand you can create your own index fund by buying individual stocks through a discount brokerage like vanguard. Reinvest the dividends and your return should average greater than 7 percent if you don’t make dumb choices.
You should have 100,000 bucks saved by the age of 34.
It takes about 10 years for your money to double with a 7 percent rate of return.
I put more than 50 dollars a day (average over my life) away per year for 37 years and retired at 56 years of age.
It’s called the miracle of compound interest. It’s eighth grade math! The Marxists in public schools don’t teach it because the want you sucking on the government teet for life!
50 dollars per day for 37 years at 7 percent is about 3.6 million.