We all fuss about government waste, corruption and criminal activity related to the U.S. government and their Wall St associates. The activities, which report on daily, are nothing short of inhumane as the unproductive capital that is wasted or looted could be used to further humanity and make life sweeter for all. But what about in our everyday lives? What about unproductive capital expenses that each one of us experience as part of our daily routine?

We know we do it and we know it’s a waste, but we do it anyway. The list is long and unnecessary to list here and will vary from person to person but we all have capital that could be put to work in a different capacity that would enrich our lives instead of hampering our dreams.

Dave Ramseys of Financial Peace has created an empire around this concept and has taught thousands of people how to revisit their finances and eliminate this unproductive waste in their budget. The first thing is to actually have a budget. This will show you how much income you possess versus the expenses. What Mr. Ramseys has done is taken it a giant step further. Part of his teachings is a form that, not only has your budget listed, items like mortgage/rent, insurance, etc. but there is a separate form for “other expenses”. This, as the form teaches, is where the rubber meets the road. This form, and you don’t need a form just a sheet of paper will do, is where you list every last penny you spend. The time line, which plays an important role, should be at least one month. As your month progresses how, where and on what changes. In order to get a better grip on how much is wasted of your hard earned income you need to see as much as possible. If you have the discipline to do it for two to six months then you will begin to see how your spending habits change. You should also begin to understand what you can live with and live without.

Approximately twelve years ago I went through this exercise and I am happy to report that my expenses, while that have changed almost 100% from that time, still remain under a microscope. It comes down to choices. I longer drink alcohol and that one item being removed from expenses has saved me approximately $2,500 annually. That’s a vacation to just about anywhere I wish to travel within the U.S. – a nice vacation! I was, obviously, a drunk, so your results will differ. This is just one item one “the list”. If you have the discipline to keep the receipt and record each cup of coffee, stick of gum, $5 you give to the homeless person on the corner and, literally, every penny you spend – write it down so you can see it and do the math – you are going to be floored by how much waste, not necessarily waste, but how much capital goes to some “thing” that could be better utilized in a different capacity.