The Rule 752 and Why Everyone Should Know It

So now you know your current savings ratio, and you are in the process of boosting it.

In part, you are knocking 10, 20, or 30 years off your dependence on a job -- adding those years back to you in the form of utter freedom. Great!

Now, let’s uncover the hidden side of a few common occurrences:

  1. A 15 mile drive or bus ride to work

  2. A casual $100 shopping spree during the month

  3. Restaurant and bar spending of $150 each week

  4. Purchasing a new car financed at $330/mo

Before understanding the hidden green, you may see these like this:

  1. Oh, that’s about $3.50 each way.

  2. I know, but those shoes are so sick! I had to get ‘em.

  3. Yep, that’s $150/wk, duh.

  4. Sounds like $330/mo. I’m guessing it’s probably a little more.

This is how a huge mass of our population sees them. But we’re different here. Here’s how we see them: 

1. A 15 mile drive or bus ride to work

Oh, good thought! That’s around $3.50 each way or $7 a day. So it’s $35 a week. (From a couple neat calculations explained below,) I see that’s $26,320 of driving in ten years!  

You know, I could totally bike that bus ride and stash that $26,320. Heck, even if I drive half and bike half I’m adding $13,160 back to my stash.

Or, I know a couple peeps at work who live near by. I’ll pick a meet up spot, shoot out an email to co-workers, and set up a carpool. If I get 3 peeps involved, I’m adding $19,740 back to my stash! And, I get 3 new friends!

2. A casual $100 shopping spree during the month

That’s a closet full of $17,300 in new shoes, clothes, and half-used bathroom products in ten years!

Goodness, I don’t really need this stuff. They’re all just rogue purchases anyways.

If I really want something, I’ll make sure it fits within my savings ratio first. And if it fits, it ain’t no thing! I’ll get it! If it doesn’t, I can totally wait a month. And if I really want it at that point, I can grab it then. Thanks for the $17,300, self!

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3. Restaurant and bar spending of $150 each week

Holy smokes. That’s $112,800 of toilet flushes in ten years!

I could totally cut out the work lunches and weekend brunches. And I could definitely organize grub-nights at my place, picnics at the beach or BBQs in the park. But there’s a time or so each week where I do enjoy grabbing some grub, a coffee, or a beer at spots with my friends. Let’s give myself $30.

The difference goes right in my stash. And in 10 years, I’m saying, “Hello, $90,240 dollars!” Boom, boom!

4. Purchasing a 2016 Toyota Highlander financed at $330/mo

$330/mo? Anytime something that expensive is showing a monthly payment, there's got to be something missing.

Ok, it is a $30,000 list price, $2,700 in taxes, and $2,800 in registration. That’s $35,500. Sheez! And we haven’t even got to insurance and gas.

With just a quick guess, I’ll be driving somewhere around 10,000 miles a year and definitely want the car for 5 years. That’s 50,000 miles. I’m grabbing a 2005 Toyota Matrix with 90k miles for $6,000. I’ll save $29,000 right off the bat. And in 10 years that savings itself will have packed $57,000 on to my freedom stash!

If these four occurrences were you, and you made these changes -- we just added $190,860 to your wallet in 5 minutes!

You see, everything costs way, way more than the price tag shows.

So here’s the magic tool: When you’re looking at something, see how much stashing the money will give you rather than getting the item. To see this:

  • Multiply any weekly purchase by 752

  • Multiply any monthly purchase by 173


Here’s one way I put this to play. After I surf with friends, we often grub at this Mexican spot. As I walk up to order, I see a super burrito and a Coke for $12. And I see two tacos and a water cup for $5.

I choose the two tacos and agua for $5. As I walk from the register, I literally pull my phone out and transfer $7 over to my savings.

I have an absolute killer time chilling with my bru’s each week. And I’m also stoked because in 10 years I’ll have $5,264 more in my freedom stash.

So now you know the hidden cost of everything. Go use the Rule of 752 and 173, and start adding to your freedom stash!

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