It is time for new year resolution again. I can help you get rich by planting a seed in your head. One of the most popular new year resolutions every January is ‘Quit Smoking’, which is also one of the hardest addictive habits to kick since the First World War.
The most successful method of quitting this bad habit is the ‘Cold Turkey’ method where you stop immediately and never return. This step is difficult due to the various stages of withdrawal symptoms which you need to endure. The key reason for every successful quitter is for health reasons. To be able to firm-hold the probability of success, you will need to rewire your brain with this method.
Do you know a heavy smoker who smokes a pack a day can actually invest these savings into shares and turn the rewards into a £250,000 portfolio over a 20-year period?
This is based on the following conditions:
- 1 pack a day =£10
- Annual savings = £3640
- Annual dividends target = 3%
- Annual growth = 8%
- Time duration = 20 years
- Final Amount = £264,136.80
Not bad for an aim which requires your brain to evaluate each visit into the shop to buy cigarettes which could alternatively build you a-side pension for retirement, buy a nice holiday home or even a nice cruise for the next 36 months. Why smoke the cash away when you can get Rich?
For a person who smokes less you can earn the following:
- A pack every 2 days = £132,431.23 Portfolio
- A pack every 3 days = £88,239.11 Portfolio
- A pack every 4 days = £66,179.32 Portfolio
With the lowest denomination of £66k, you can still buy yourself a few holidays for the next 3 to 5 years. Why not?
This price of cigarettes may vary from country to country.
If you livee in a country with cheaper cigarettes doesn’t make you any healthier or richer. Please use this incentive to quit smoking.
How do we earn the 3% dividend reinvestment with an annual 8% growth? Let me guide you.
Remember this is a weekly saving set aside and which you need to save to ensure you don’t waste it on something else. Steps to follow:
- Direct debit savings to your investment broker on a weekly basis.
- Set your investment on a monthly basis
- Choose an investment type which is low cost such as Index or fund managers
- Index funds can be FTSE100, Dow Jones US, S&P500, Global index, Global tech index.
- Vanguard low-cost Index with varying risk
- In UK fund managers can vary from Woodford funds and Nick Train funds.
- If you enjoy higher risk emerging markets in India or Asia.
- Remember to set the dividend reinvestment option to be automatic as well.
- Lastly sit back and enjoy a healthier life. Trust me you can even be ambitious by signing up for marathons and iron man if you wish to set further milestones.
Hopefully, this article can give you more financial incentive to be more determined to achieve your goals.
Note: each index and funds suggested above performance can vary from one another. This is still more cost-effective in the long run compared to buying individual stocks and shares.