We all know the
non-financial effects of smoking.
suffers. Your career prospects might be limited. Risk of shortened life. Poor
health. Etc, etc.
Well the gory,
statutory warnings at the beginning of every movie are hideous enough to make
us lose appetite of our cheese popcorn and chilled coke.
But what if we
told you, based on a simple mathematical calculation, that the cigarettes are
standing on your way to becoming a Crorepati?
Here’s a tiny
presentation on the financial effects of smoking, at the end of which we hope
you’d acknowledge the fact that addictions can be truly expensive.
In order to make the calculation easier, we’re
going to assume the following.
We’ve rounded up the varying
cost of a cigarette (that ranges from 10-15 INR) to 12 INR.
We’ve assumed that our subject
starts smoking from the age of 30.
The number of cigarettes smoked
– 5 per day.
Gender Neutral Assumptions.
Subject is assumed to be from
an urban/semi urban background.
And, now – on to
This is perhaps
the chunkiest part of the calculation. Assuming that the average cost of a
cigarette is 12 INR, and the smoker smokes 5 cigarettes a day – that adds up to
1800 INR a month. Now over a period of 30 years, assuming that the cost of
tobacco products increase at 8% per annum – your expenses are almost 24.47 Lakh
Now, here comes
the most interesting part. Assuming you invested this amount, at 9% - you have
accumulated a wealth of 69. 23 Lakh INR.
Keep this amount
aside for now, as we plunge into other details.
ON HEALTH EXPENSES
Hey, we don’t
want to get all preachy but you already know enough that smoking will add on to
your hospital bill.
effect of your addiction is reflected in the form of 400 INR every month in
your health expenses, this amount adds up to 11.59 Lakh INR at 12% yearly
increase in the cost of healthcare services.
invested at 9%, might have brought in a lumpsome 26.7 Lakh INR that you simply
puffed your way off.
Yes!! It is
Companies charge smokers with extra premium.
As a 30 year
old, you might be paying 460 INR higher in premium every month (for a cover of
This amounts to
1.65 Lakhs in 30 years, which invested at 9% might have fetched you 7.52 Lakhs
by the time you’re 60.
probably rolling your eyes at all the math, and trust me –I’m a person who
not-so-good with numbers myself, but adding up these expenses surely blew my
69.23 + 26.7 + 7.52 = 1.03 CRORE RUPEES
Funny, how 5
cigarettes a day is keeping you from becoming a Crorepati, isn’t it?
WRITTEN BY: BALAKARTHIGA.M
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