Smoking is an expensive truck. Anyone who waives this can accumulate a fortune, for example by investing the money saved in an ETF.
• cigarettes are becoming increasingly expensive
• Non-smokers can save over half a million euro custody assets using an ETF savings plan
• Increase rate effect makes rich
Cigarettes have become increasingly expensive in recent years. While around 30 years ago, five German marks, i.e. the equivalent of around 2.50 euros for a box of the most popular brands, was paid, the price today is an average of 8.70 euros for a package with 20 cigarettes.
Anyone who smokes a box a day will spend 169,433 euros in 30 years. For this extrapolation, the comparison portal has assumed that the cigarettes become 3.7 percent more expensive every year – this corresponds to the average price increase in the past 20 years.
ETF savings plan instead of cigarettes
The waiver of 20 cigarettes per day thus saves a saving of around 265 euros a month. Anyone who invests this money cleverly can accumulate a remarkable 502,712 euros in 30 years.
In order to get this sum, the money saved in the model calculation of Verivox in an ETF-Savings plan invested. A return of 7.5 percent annually was assumed, because this corresponds to the historical average return of the MSCI World minus 0.2 percent annual costs that go to the ETF provider. According to the average price increase for cigarettes, the monthly savings amounts are increased by 3.7 percent each year.
It is important that the money saved is invested in a thesauring ETF, in which dividends are not released but reinstalled again in new ETF shares, because the compound interest effect develops its full effect. After 30 years, the effects are enormous, then only a third (34 percent) of the deposit value of 502,712 euros on their own deposits, and the remaining around 333,000 euros are increased by return and compound interest effect.
Tax deduction
However, investors must not forget that they still have to tax their price gains when selling their shares. After deducting 26.375 percent for compensation tax plus Soli, the model calculation of Verivox will remain at a good 441,000 euros after 30 years. Tobacco waiver is therefore not only good for your own health but can also make rich.
Editor finance.net