Baby Steps & a 'Black Hole'

The first practical ‘baby-step’ to getting out of debt is learning to live within one’s income. This, like a baby’s first step is a momentous event. It takes planning (budgeting) and discipline (sticking to the budget). Good stewardship begins with learning, planning and discipline.

Job 36:10 says, “He also opens their ear to instruction, And commands that they turn from iniquity.” Proverbs 16:3, “Commit your works to the Lord, And your thoughts will be established.” Proverbs 3:5 - 6, “Trust in the Lord with all your heart, And lean not on your own understanding; In all your ways acknowledge Him, And He shall direct your paths.”

Take a very hard look in the mirror, and then look at the autopsy budget, to prepare a ‘new’ budget for the upcoming months.

There are two ‘baby-steps’ to get out of debt. First, live within income...do not spend more than one earns. Second, pay the consequences of the past (pay off debt).

Living within one’s income is a difficult but straight forward task. What is the total income available? That is the bottom line. If one is to live within their means, one cannot spend more than one earns. Let us say that again, if one is to live within their means, one cannot spend more than one earns.

There are expenses that one has to pay. One has to pay rent and utilities. It might be advantageous to move into a less expensive living arrangement, but there are other ways to cut ‘expenses’. When I first did an autopsy budget, I found that there was a ‘black-hole’ in the budget. Money was literally ‘disappearing’ into a ‘black-hole’. There was money spent that could not be accounted for. I had to get very ‘obsessive’ about receipts to find that money.

It sounds a little ridiculous, but I found out that I was ‘innocently’ throwing money away. The first ‘big’ 'expense' I found in ‘black-hole’ money was coffee. I was buying a cup of gourmet coffee most mornings at the corner coffee house. No big deal, right? It is no big deal until I realized that it cost more than $60 a month. That was more than my utility bill, three times my water bill. Going next door to the fast food restaurant cut that bill to $20 a month. There was $40 a month that could pay off debt. No I could not get an espresso-latte at fast food restaurant in a name brand coffee cup, but I did get free refills. So what if my coffee cup was white Styrofoam instead of printed recycled paper! The $40 a month was worth it. (I saved even more when I started making coffee at home, then I could get an espresso-latte, just the way I like it.) The point is, one will be amazed at the amount of ‘black-hole’ money one spends without realizing it, until one puts the effort into ‘finding’ it. Getting a bottle of water at the gas station costs a heck of a lot more than bringing a bottle from home. Little things add up. Benjamin Franklin said, “A penny saved is a penny earned.” This is definitely true. Count the ‘black-hole’ money, find where it is spent, and figure out simple ways to reduce those costs.

Eating in a fast-food restaurant cost two to three times what it would cost to eat at home. Ordering out for pizza costs two to three times what it costs for a ‘fresh-deli’ pizza at the grocery store. One could complain about time, but think about it. Delivery pizza takes 20-30 minutes. A deli pizza from the grocery store requires pre-heating the oven then 10-15 minutes baking time. Where is the ‘savings’ in time? Even with ‘speed-dial’ how much more time does it take to turn on the oven than dial the phone?
Remember, getting out of debt requires a change in attitude as well as a change in lifestyle. That doesn’t mean one can ‘never’ go to a restaurant, it means that it should be the exception, not the rule. The objective here is simply to find ‘black-hole’ money and reduce those ‘frivolous’ expenses. That $40 a month saved on coffee is $480 a year toward debt reduction. How many expenses like that does one have? Follow the money, find it, and spend it on debt reduction!

That is a practical ‘first baby step’ way to begin to live within one’s means.

1 Corinthians 10:31 comes to mind. There has been a big move towards “What Would Jesus Do?” "The Purpose Driven Life" by Rick Warren has been a national best seller. 1 Corinthians 10:31 says it all, “Therefore, whether you eat or drink, or whatever you do, do all to the glory of God.” "...do all to the glory of God!"

Learn where one’s money is spent. Start planning to get out of debt, by first planning and then living within one’s means. That brings glory to God.