Search
National Consumer News

Rule of 752: How small expenses can destroy your budget

SHARE THIS STORY

Small expenses can sneak up on you when you’re not paying close attention to your budget, but here’s a simple way to get yourself back on track.

t’s called the Rule of 752 – and it reveals the cost of weekly expenses over a decade.

Explaining the Rule of 752

Simply multiply any weekly expense by 752 to see the real cost of that expense over 10 years — had you invested the money at a 7% compounded rate of return, Credit.com reports.

Take a look at a few examples below to see how small purchases can add up over time!

Morning coffee: $20/week

Rule of 752: How small expenses can destroy your budget

As you head into your favorite coffee shop five days a week, you may not think twice about the $4 a day tab. But take a look at it this way:

Rule of 752: $20 x 752 = $15,040

Read more: How you can make over $100K by skipping your morning coffee

Fitness class: $30/week

Rule of 752: How small expenses can destroy your budget

If you supplement your regular gym membership with one of those fancy spin classes, you could easily be paying $30 a week or more! See how that adds up:

Rule of 752: $30 x 752 = $22,560

Read more: 8 sneaky ways to save on a gym membership

Lunch: $40/week

Rule of 752: How small expenses can destroy your budget

If you don’t bring your lunch to work, you’re probably running to a quick service restaurant, perhaps spending $40 a week. That’s a lot of money over 10 years:

Rule of 752: $40 x 752 = $30,080

Final thought

We aren’t exactly sure who came up with the Rule of 752, but blogger Mr. Money Mustache wrote an article about it in 2011, and the math seems to work out.

For monthly expenses, he says you just multiply by 173 instead of the 752 used for weekly expenses.

If you want something to compare it to, plug your numbers into a compound interest calculator to see how your investments can grow over time.

Share on Facebook
Share on Twitter
Share
Share