Sometimes it’s easy to ignore small expenses and then we wonder why the budget seems so out of control. It’s often the small daily expenses that add up to a lifetime of financial frustration.
The Rule of 752 can add so much needed perspective. Take a weekly expense and multiply it by 752. The result is the real cost of that expense over 10 years had you invested the money instead. The result is the cost of that expense over 10 years had you invested the money instead. With the Rule of 752 in mind, here a few small expenses that might be draining your budget.
Account Maintenance Fees
Consider checking your bank statements for fees with bank accounts, credit cards and prepaid debit cards. While each fee by itself may not seem like a lot, they add up quickly.
There are many no-fee checking accounts, no annual fee credit cards, and even prepaid cards that don’t charge a monthly fee. Once you eliminate the fee, you’ll save that money each and every month going forward.
TV & Phone Expenses
Today many families pay hundreds of dollars each month for TV, Internet and cellphones. We now have ver 500 channels and cellphone are more powerful than ever but the costs can get out of control.
First take a look for fees on services or equipment that you’re not using or make sure you need the level of service you’re paying for. Another option is to consider alternatives. Prepaid cellphone services can save you a bundle over two-year contracts with major carriers.
You might only pay $30 year for a monthly subscription to a printed publication but do you even read it? It seems like a small amount, but when you add up the fact that you are paying it over time it becomes another regular expense that you have to pay each month.
Consider the little things you do that might be charged as a convenience such as buying things over the phone or receiving paper statements from your bank. There are also convenience fees associated with travel. If you want to travel at a time that is more convenient for you, you may pay $50 to $100 more just for scheduling to a more opportune time.
Credit Card Interest
Credit cards are meant to be addicting. Enabling you to spend more money that you don’t readily have can become a bad habit. The high interest rate associated with credit cards can quickly add up over time if you carry a balance and make only the monthly payments.
By the time you pay off the credit card, you might have carried that debt for 10 years and have repaid three times what you borrowed in interest alone. By monitoring your credit and doing the work to build your credit, you can have better access to lower interest rates, which will save you money in the long run.
How have you used the Rule of 752 to your advantage? Leave us a comment below or on Facebook (click here)!