Russians have been explained how giving up alcohol and tobacco will make them millionaires

Financier Drozdova: saving on tobacco and alcohol, you can earn 2 million rubles

A Russian smoker spends an average of 2280 rubles a month on cigarettes (18 packs) and 5600 rubles on alcohol (two bottles of 700 rubles a week), said investment expert Elena Drozdova. She noted that if you invest the money saved on bad habits, in 10 years you can become the owner of a fortune of two million rubles.

Cigarettes will cost 2,280 rubles per month, and 37,360 rubles per year. Alcohol – for the calculation we will take two bottles of 700 rubles a week – a month is 5600 rubles, a year is 67 200 rubles. The cost of cigarettes and alcohol per month is 7,880 rubles, per year it is 104,500 rubles. If these funds are invested, you can earn a capital of 2,073,160.10 rubles in 10 years,” said Drozdova.

As an example, she took the returns “that absolutely everyone can get with a conservative and moderate investment strategy – 10% and 14% per annum. According to her, the essence of “compound interest” is that the interest earned is further re-invested, not taken away for personal purposes.

Starting capital – saved 7,880 rubles, then replenish the account by the same amount every month for 10 years. If it is directed to instruments with a yield of 10% per annum, we will get the final capital – 1,635,509.92 rubles. Of these, 945,600.00 is the amount of replenishment and 682,029.92 is the income received. If the same amount is invested at 14%, the total will be 2,073,160.10 rubles, of which 945,600.00 rubles is your replenishment amount and 1,119,680.10 rubles is the income,” summarized Drozdova.