What is The Lifetime Cost of Smoking for an Average Smoker?

The Indian government has been very serious about curbing the smoking menace. But even charging the highest possible tax rate and imprinting horrifying images of Cancer patients on the pack is not quite discouraging smokers.When it comes to smoking, what most people are generally concerned about is the physical damage it causes. But apart from physical health, smoking also has a major impact on your finances. So, what is the lifetime cost of smoking for an average smoker? Let us have a look-

Let us assume that you are 30 years old and smoke five cigarettes a day. If the cost of 1 cigarette is Rs. 12, you are spending Rs.60 per day on cigarettes and Rs. 1,800 in a month. Now what is important to note here is the fact that the cost of cigarettes has increased by up to 20% in the last 4 years in India.If we assume the same in the future too and consider that the cost of cigarette increases by 8% in a year, by the time you reach 60 and retire, you'd have already spent around Rs. 25 lakhs on cigarettes. The cost will be more if you smoke more than five cigarettes in a day.

If the monthly financial cost of smoking , which is around Rs. 1,800 to Rs. 2,000 for most people, is invested somewhere where you can earn 9% annual returns, this small contribution can turn into Rs. 70 lakhs in about 30 years.So, throughout your lifetime, you’d not just waste Rs. 25 lakhs on cigarettes but also lose an opportunity to earn as much as Rs. 70 lakhs by investing the same amount.

If you are a smoker and concerned about your health, you might be thinking about purchasing health insurance and/or life insurance . But insurance providers also understand the health implications of smoking due to which smokers are considered as high-risk customers.As compared to a non-smoker, the premium of health and life insurance can be as high as 25%-30% for a smoker.

If the health dangers of smoking are not enough to make you kick the butt, think about the financial implications. Use an online cost of smoking calculator to see how much money you will spend on this habit throughout your lifetime.Rather than wasting the money on smoking, invest the same amount to generate handsome returns and benefit from cheaper health and life insurance.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.