Cigarette companies are distinctive. Wonder why? Which other product would have a campaign against cigarettes on its packaging?
Yes, cigarette companies clearly state that smoking causes cancer on their packets. Smoking is injurious to health and everybody is aware of this. Companies selling cigarettes, people buying cigarettes, consumers, their families and so on, they all know this.
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Smoking is an addiction and it is very difficult for a chain smoker to quit smoking. Besides the numerous health issues it causes, smoking can have adverse effects on your finances.
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An alarming report states that a person who smokes 5 cigarettes a day for 30 years, loses more than Rs 1 Crore. Let’s take a look at these numbers:
The price of an economical cigarette stick ranges from Rs 10 to Rs 15. Consider the average price of a cigarette stick to be Rs 12. A person who smokes 5 cigarettes a day will spend Rs 60. This adds up to Rs 1,800 a month.
Tax on tobacco products are always on the rise. In the last four years, the price of cigarette packets has seen an average rise of 20% each year. This means the above-calculated figures are not static. Cigarette packets are assumed to have an 8% price hike each year. Spreading this across 30 years; you would spend Rs 24.4 Lakhs, just on buying cigarettes. Instead, if this amount was invested elsewhere, at 9% returns a year, it would grow to 69.23 Lakhs within a span of 30 years.
Besides cancer, smoking causes a lot of other health problems. It increases the chance of getting heart attacks. It often causes bronchial issues. According to an estimate, a smoker will spend 400 rupees each month for medical expenses.
Again this is not a figure set in stone. Medical inflation rates are much higher than in consumer inflation rates. Doctor’s fees, diagnostic charges, medicines and so on are rising at a rate of 15% per annum. Taking an average rise of 12% per annum, a smoker spends Rs 11.59 lakhs over a period of 30 years. If this is used to invest in a product that yields 9% returns per annum, it will grow up to 26.70 Lakhs in 30 years.
Life insurance companies consider smokers to be a high-risk category. They will consider the following criteria when it comes to a smoker: Age, current health status, number of cigarettes smoked per day and so on. The premium paid by smokers is much more than a normal person.
Taking the example of a leading insurance company, a 30-year-old smoker will have to pay 460 times a higher premium each month. This price is constant, and will not change over the years. This will add up to Rs 1.65 Lakh per year, and if invested would compound to Rs 7.5 lakhs over 30 years.
Adding all these figures will cost an approximate amount of Rs 1 crore over 30 years.
The non-monetary losses of a smoker are unrecoverable. The quality of life is degraded. Smoking has adverse effects on every aspect of life. Let’s take a look at the same below:
The above results are based on estimated figures. However, it is true that monetary and non-monetary losses are a by-product of smoking. Quitting smoking will have a positive impact in every aspect of life!
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