Sunk Funds

Sunk funds are money I already spent and won't ever get back. Some of the money I sunk into my various ventures helped; a lot of it didn't. The key to differentiating one from the other is if I see some positive results. I have to make sure I sink funds in productive areas so that I get a result at least equal to what I sunk. Some money I had to spend--food, clothing, shelter, safety.

The way I figure if I'm getting back anything for the funds I've sunk is to write down and account for every swinging thing I spend money. At the end of each day I categorize. $2.50 for coffee at Starbucks; $29.50 for a book on marketing; $1.50 to take a bus; $8.00 for a movie; $58.56 for dinner with friends.... So on and so forth.

If I'm diligent about it I will start to see some patterns in my spending. And I can have a conversation about what I am spending and what I should be spending on. I do this every day now and it has given me a more productive life. My spending patterns have changed, and I'm more interested in making my numbers than in spending everything I spent. And I know that what I am spending my money on is what I should be spending my money on.