Rule of 752: How small expenses can destroy your budget

|
Rule of 752: How small expenses can destroy your budget
Image Credit: Dreamstime.com
Team Clark is adamant that we will never write content influenced by or paid for by an advertiser. To support our work, we do make money from some links to companies and deals on our site. Learn more about our guarantee here.
Advertisement

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.

It’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.

Check out these examples 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

Read more: Save some money with these easy brown bag lunch tips

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.

More ways to save: 

Advertisement
Mike Timmermann About the author: Mike Timmermann
Michael Timmermann paid off his mortgage in two years. Now, he shares his money-saving tips on his blog, Save on Almost Everything.
View More Articles
  • Show Comments Hide Comments