Quit smoking: How to invest in your financial future!

Quit smoking: How to invest in your financial future!

Today, May 31, World No Tobacco Day draws attention to the health and financial benefits of quitting smoking. A key aspect is how the money saved from quitting cigarettes can be converted into long-term investments, such as ETFs. This transformation could lead to significant wealth over the years. Loud it-boltwise.de The current price for a pack of cigarettes in Germany is around 8.70 euros.

Anyone who smokes a pack a day spends around 265 euros a month. Over a period of ten years, the expenses add up to around 37,600 euros and in thirty years this amount can amount to over 169,000 euros, taking into account an annual increase in the price of cigarettes of 3.7 percent. However, these financial resources could also be used for promising investments.

Building wealth through ETF investments

The model calculation of utopia.de impressively shows how the money saved by investing in an MSCI World-based ETF can create a considerable fortune of over 500,000 euros over a period of thirty years. This calculation is based on an assumed average net return of 7.5 percent per year.

In the first decade, the portfolio assets could already amount to around 54,000 euros, with 69 percent of this coming from your own deposits. After thirty years, the total assets could be over 503,000 euros, of which more than 333,000 euros result from returns and the compound interest effect. It is important that savers adjust their monthly savings amount by 3.7 percent annually in order to keep up with rising cigarette prices.

Tax aspects and long-term strategy

When the shares are sold, 26.375 percent of the profit is due as a withholding tax and the solidarity surcharge, leaving around 441,000 euros after taxes. While returns can vary, a long-term investment approach and patience are crucial to building wealth.

World No Tobacco Day is not only a day to reflect on the health risks of smoking, but also an invitation to promote financial freedom through conscious choices. By giving up cigarettes and investing in ETFs, smokers can sustainably improve not only their health but also their wealth.