If you’re tired of using complicated methods to see how much money you could save over the long term if you cut cable or stopped some other monthly reoccurring fee, you’re in luck. You can figure it out with a simpler method than you have been using. It’s called the Rule of 184 and it can help you quickly determine whether a reoccurring payment will be worth it to you in the future.

How the Rule of 184 Works

With the Rule of 1984, you’ll take the monthly payment you’re contemplating and multiply it by 184 to see how much that expense would cost you over a 10-year period.

For instance, let’s say you want to put an addition onto your house. But in order to do, you’re going to have to agree to a payment of $220 for a period of 10 years. To see the true cost of how much that will set you back, you’ll multiply that monthly figure by 184.

That number takes into account the interest you could make, set at 8 percent, over the next 10 years if you had invested that monthly figure instead of spending it.

So let’s see how much that home renovation could potentially cost you. It would rob you of $40,480 over a 10-year period. Once you see that figure, you might decide that backyard oasis isn’t worth the money. Or maybe you’ll decide to spring for it anyway. That’s up to you. But at least with the Rule of 184, you’ll make a more informed decision.

How It Can Benefit You

When you start thinking in terms of how much each purchase is costing you, it can be a powerful motivating factor.

While you might not decide to forgo every purchase, even if you opt not to do some of them you’re going to have an improved financial picture.

Maybe you’ll decide that $100 cable bill isn’t worth the $18,400 that could be sitting in a bank account for you in 10 years’ time. And maybe you’ll realize that gym membership isn’t worth it if you only go there once a week.

You might start looking for a cheaper route to go with your purchases. Instead of the sports car that might cost you $400 a month, maybe you’ll go for a less flashy but much cheaper model.

If you find a few places to cut back on and take the action of investing the money instead, you might end up with six figures more for your retirement than you would have if you didn’t know the Rule of 184.

It’s rare to find a financial rule that is as straightforward and simple as the Rule of 184. So when you stumble across one, you should make sure to put it to work for you.