In John Cummuta's book, Debt Free and Prosperous Living, he describes the tool that can help you find unnecessary expenditures. He calls it CIA ... It represents Convenience, Indulgence and Appearance.
I'm sure we could think of other things like stopping for our favorite $5 coffee, and thinking we must have our two or three cokes throughout the day.
"We waste money on Indulgences," Commuta says, " when we go to the mall after a hard day or week - because we deserve some kind of treat. That treat generally uses up money we really don't need to spend—and it is frequently charged on a credit card, which makes the cost higher and the indulgence more damaging."
Ouch! Has he hit your weak area yet?
He goes on, "We indulge ourselves with expensive credit card dinners (again usually prompted by a hard week.) We waste money on indulgences when we buy expensive toys, usually on credit, to help us make up for the tough life we live. These indulgences drain more than the average American's financial resources than they might imagine. Most people are stunned when they research and compile indulgences expenditures."
Are you mentally adding up all the money you've paid out recently that you could have invested more wisely in matters pertaining to building your business?
Well, Commuta shares where we have more money slipping through our fingers that we could be using more wisely. He says, "We waste money on Appearances when we try to keep up with the Joneses. Let me tell you something—the Joneses are going bankrupt. Everything they have is in hock, and if they lost their income, they would probably be homeless in a month or two. They are living an illusion, and you will be too if you try to compete with them. Forget trying to impress people with your possessions...."
Perhaps, if we are serious about our future it would be wise to examine our life ruthlessly to see where we are wasting money on CIA. Then set out on a plan to eliminate those wastes.
As Commuta adds, his suggestions do not mean you have to live like a Tibetan Monk. You have to decide: How much money is flowing from your hands each month. Are the luxuries of CIA really worth what your really are paying for them in the long run?