The True Cost Of A Monthly Expense

It is amazing how many subscriptions we all end up having. We subscribe to Netflix, Amazon Prime, Spotify, vegetable boxes, insurance and more.

Have you ever checked your banking app or credit card for the recurring regular payments? If not, break out your banking app / credit card app now and check to see what you are subscribing to.

That £10.99 a month on Netflix, £10 on Amazon, £50 on Sky and so on, soon mount up. What would happen to your finances if you cancelled those subscriptions and invested the money instead?

The rule of 194

The rule of 194 show the true cost of monthly expenses over 10 years, if you had invested the money instead.

Multiply a MONTHLY cost by 194 to see the true cost over 10 years.

Lets imagine…

Let’s imagine you cancelled Netflix. That is £10.99 a month. If you took that money and invested it in a broad-based index fund how much might you have at the end of 10 years?

For a monthly expense you take the amount and multiply it by 194. £10.99 multiplied by 194 is £2,132. If you took the money you were spending on Netflix and invested it instead you would have £2,132 after 10 years!

If you managed to reduce your car repayment by £100 and invested it instead you would have £19,400 by the end of that 10 year period.


This relies on you saving/investing the money you save, not just spending it on something else!