 So what if I told you there are two things out there in this world that if you completely stop doing, if you erase these things out of your life, you can become a millionaire in some time throughout your life just by erasing these things completely out of your life. We're going to be talking about that in this video, so let's do it. So the two things I want to talk about in today's video are listed right here on my whiteboard and I have an average cost for both of these things and for one of these things I have the high cost in the highest state in the United States on average, right? So let's just take a look at this first thing right here and yes that is cigarettes. So remember these numbers guys the average cost per pack of cigarettes these are United States numbers is seven dollars, right? The New York cost which is the most expensive state to buy cigarettes in the United States of America is twelve ninety five but I rounded up to thirteen dollars for the sake of this video and the second thing that we're going to be talking about here is cable television guys so the average cost per month of cable television is eighty five dollars so these are the numbers that we're going to be playing with and you may be asking yourself how can you become a millionaire by simply cutting out these two things. So I'm going to hop into my computer actually go to a compound interest calculator and show you guys if you were to save this money here right we're going to go through a couple of different scenarios and you used this money to invest in the stock market for the sake of this video at an 8% to a 12% interest rate compounded annually you can become a millionaire in some years. So let's hop right into my computer and talk about this on a further basis. Alright guys so here we are the compound interest calculator so before we do start plugging in some numbers and going through a couple of different scenarios let's talk about what compound interest is in the first place for everybody out there that has no idea so the gist of what compound interest is is let's say for example you have $1,000 and you invest in the stock market and you make an 8% return on that $1,000 in one year after that year you're going to have $1,080 and this is when compound interest starts to kick in that second year let's say you make another 8% that 8% is not only going to be applied to your original principle which was $1,000 it's also going to be applied to that $80 that you made in the first year right so pretty much guys compound interest is interest making interest and every single year that goes by you make more money from the money that you made from your original principle years ago right and you can imagine that over the span of 10, 20, 30 years how big this sum of money can become you know simply from the formula of a compound interest so let's pull up my little calculator here and start to play out with a couple of different scenarios from back on that whiteboard remember the average cost of cigarettes is $7 per pack and unfortunately guys a bunch of people out there do smoke a pack of cigarettes per day right so on average that's going to be $7 per day times 7 which is $49 per week on cigarettes times 4 which is going to be $196 per month on cigarettes times 12 and that's going to give us $23.52 $2352 per year on cigarettes so let's just hop right into this compound interest calculator to see if a person smoking a pack a day if they completely quit smoking cigarettes how much money will they have in terms of 10 years from now 20 years 30 years how long is it going to take them to become a millionaire with an 8 to 12% interest rate so in this case we're not going to start out with the principle right we're going to keep the principle zero but the annual addition is going to be that $23.52 that you're saving from simply not smoking right so $23.52 let's say you make an 8% return compounded annually right so let's say let's see rather how much money are you going to have after 10 years of just not smoking daily not finishing a pack of cigarettes at $7 per day daily let's see guys calculate that so simply from not smoking you're going to have $36,798 and you're probably like Stas that's not a millionaire status right but wait take a look at this guys let's just let's just keep going through this so 20 years from now you're going to have $116,000 and remember this is at an 8% which is the average stock market return historically if you're an above average investor let's say you're making 12% the numbers compound even bigger so let's say you're making or rather let's say 30 years let's see what that's going to be now we're talking some more you know big money right a quarter million dollars 287 thousand dollars and let's say 40 40 years you're going to start getting closer and closer to millionaire status 658 thousand dollars what about 50 years now we're officially millionaires guys so think about that you didn't start out with any principle you're just not smoking 23 52 per year compounded for 50 years at 8% you're going to have $1.4 million right absolutely amazing so let's say you're 20 years old unfortunately a lot of people start smoking from a young age right from 20 to 70 right that's 50 years you'll have $1.5 million from not smoking right simply not smoking and you can have you know a job that pays a lot of money and if you're investing with that money you're going to be a multi multi multi millionaire guys it's absolutely unbelievable and with the way people are living nowadays you know 70 years old you might still have 10 20 years of life to enjoy that 1.5 million dollars and let's say you know we're doing 12% interest let's go back to 10 years and do the whole thing again you know if you're making 10% or 12% 10 years you're gonna have 46 thousand dollars in 20 years right you're gonna have a hundred and eighty nine thousand dollars in 30 years you're gonna have 635 thousand dollars and 40 years you're gonna have two million dollars two million dollars at a 12% compounded interest rate for 40 years so think about it from 20 to 60 just not smoking cigarettes guys not smoking cigarettes you're going to have two million dollars so let's hop back over here to the calculator very quickly and let's see you know if you live in New York that high price of $13 this is when the numbers are gonna get fun guys take a look at this so let's say you smoke a pack a day in New York which a lot of people smoke a pack a day in New York 13 times 7 right 7 days in the week that's $91 per week in cigarettes times 4 that's $364 per month in cigarettes on cigarettes times 12 that's $4,368 a year on cigarettes so four three six eight let's pop that back into this calculator here at 10 years let's say we start out with that 8% again that's gonna be $68,000 after 10 years compounded at 8% 20 years that's going to be $215,000 guys 30 years $534,000 unbelievable 40 years that's gonna be $1.2 million so if you live in New York from 20 to 60 you don't smoke cigarettes at $13 per pack 8% compounded in you know annually they're gonna have $1.2 million and take a look guys if we hop back to that 12% this is when the numbers get very very big so in 10 years 85 grand right 20 years you're gonna have $350,000 guys so from 20 years old to 40 if you just don't smoke cigarettes and you live in the city you have you know a job in the city whatever you're doing you're gonna have 350k from just not smoking cigarettes this blows my mind it's unbelievable right so from for 30 years you're gonna have $1.1 million and again this is when the numbers get insane so from 20 to 50 years old if you start or if you start investing you stop smoking at 20 you start investing that money instead $1.1 million take a look at this $43.7 million and 50 guys this is gonna blow your mind right here 11 11 I'm laughing when I'm saying this because this just blows my mind right 11 million dollars 11.7 this is unbelievable so that are those are the numbers really if you just simply not smoke a pack a day so now for the second example here the cable television this is going to take you a bit longer to become a millionaire but it's still very very possible so let's pull out our calculator here our dandy old calculator and let's start doing some math right so we saw $85 is the average monthly cost of cable so 85 times 12 that's going to be $1020 so that's you know a little bit really it's a lot less than the cigarettes in terms of a yearly cost but you can still become a millionaire through your lifetime by simply cutting out this one little thing that a lot of people don't even use anymore right cable is something that no one really uses anymore you know Netflix Hulu you know Apple's coming out the streaming service Disney all these different platforms are a lot a lot cheaper to use than cable and if you don't even like Netflix Hulu whatever you can you know save on not even using those either right so let's just say for example you don't use Netflix you don't use anything you don't watch TV at all right let's see how much you can save from just really investing that 1020 per year at an 8% return for 10 years let's see how much that's going to be so that's going to be 15,958 at 8% so again that's not that much right that is not millionaire status but let's say 20 years that's going to be 50,411 how about 30 years 120 124 792 how about 40 years that's going to be 285 376 50 years that's going to be 632 thousand dollars so 60 years that's when you're going to become a millionaire and again this is really it's going to take a little bit more to become a millionaire by just simply cutting out cable but the idea here is that throughout your lifetime you can become a millionaire by simply cutting out a tiny expense in your life that's the whole purpose of this video right you can really do this with anything right you know take a look at your monthly expenses right if you're paying $30 at a gym per month and you don't use that gym membership plug it into the compound interest calculator to see how long it's going to take you to become a millionaire by just simply canceling that out right and this first in 60 years guys if you're 20 the time you're 80 you're going to have $1.3 million by simply not having cable your entire life right and you'll become a millionaire even quicker at a 12% interest rate let's just do that very quickly again right so in 10 years at 12% compounded in annually $20,000 in 20 years you're gonna have $82,000 in 30 years you're gonna have $275,000 and in 40 years guys drumroll up not yet $876,000 and in 50 years that's when you're gonna become a multi millionaire $2.7 million let's see exactly when you're gonna become a millionaire probably 45 years maybe 42 years alright let's say 42 years so from 20 to 62 years old you don't have cable you're gonna become a millionaire in 42 years at 12% compounded annually so those are just a couple examples to get you thinking you know if you cut out some expenses guys you plug them into this compound interest calculator this will get you understanding how investing and compound interest works and how you can become a millionaire by simply cutting out $100 even $100 to $200 per month in your expenses whatever those expenses are they don't have to be cigarettes they don't have to be cable whatever they are just cut them out invest 8 to 12% you'll become a millionaire in your lifetime so hope you guys enjoyed the video if you did feel free to go down below hit that like button it really supports me in the channel in general if you want to see more content for me I make a bunch of stock market videos trading you know investing analysis personal finance stuff like that feel free to subscribe to the channel hit that notification bell so you're notified every time that I do make a video I'll catch you all in the next video again thanks for watching I appreciate every single one of you guys peace out