Good news!

Last fall, when we were going through open enrollment for insurance (through work) for the 2009 calendar year, we decided to put about $500 of pre-tax income into a medical flex spending account (FSA). We estimated it based on the cost of our regular (recurring) monthly prescription co-pays and over-the-counter medicines, doctor/dentist/optometrist co-pays, plus a little bit extra to cover any additional expenses. 

We haven't had any visits to urgent care or the emergency room this year, but we did get stuck with almost $400 worth of physical therapy co-pays that we weren't expecting at the time we signed up for insurance & the FSA. 

It turns out that the information we initially received about the various insurance plans had indicated that physical therapy was supposed to be completely covered - with no copay. When we inquired about it, they found out pretty quickly that it was an error on the employer's informational packets. After months of back & forth on what could be done, they finally told us that they would deposit an extra $375 into our FSA to cover the error.  

We still owe $270 (it hasn't been billed yet, but we know it's coming), so this will cover that and also reimburse us for what we've already paid. 

Since FSA's are a "use it or lose it" account, we'll have to pay careful attention to the balance to make sure that we maximize every cent! We still have several prescriptions and over-the-counter medications to buy to cover us for the next few months, but I think we'll end up with $50-100 left... so I think one of us will be able to get a new set of glasses at Christmas!  :)  

Car Insurance

Car insurance in Michigan tends to be rather expensive, in large part because it's a no-fault state. 

The "Catastrophic Claims Premium" (a mandatory state-wide fee on all auto insurance policies), which covers unlimited lifetime medical benefits for those seriously injured in car crashes, was increased by $20/vehicle/year.  

And general rates increased as well, for a plethora of unknown reasons (insurance risk score, credit score, regional score, etc). My 6-month premium, which had been about $450, increased to just shy of $500. 

I've also been thinking about adding underinsured motorist coverage to our policy, so that if we're injured by someone else who just carries the minimum, we would be entitled to recoup damages from our own policy. I'm not sure how much that will cost, but since so many people in the area have cut back the liability limits on their policies to save money (or cancelled insurance altogether, albeit illegally), it worries me that we could get into a serious accident and then only be able to recoup the equivalent of a few months' salary... 

Homes are Expensive

We had to pick up a few items at Home Depot to continue working on some home repairs. A new circular saw blade, a pair of sawhorses, an extra-long drill bit, can of spray-primer & spray-paint, and a few sheets of OSB. We got to checkout and the total was $99 plus change. 

I don't think twice about dropping $100 at the hardware store, but I almost always cringe at the idea of spending $20 for a pair of pants or top. It's truly unbelievable the amount of money that we've put into repairs & renovations, and the amount of money that we're "hoping" to put in over the next year or so. 

As much as I'd like to renovate and redecorate everything to my taste, it's temping to just stop putting money into any non-essential repairs, and instead use all of it for fun stuff. Clothes, hobbies, vacations. 

Threw out the budget

I only had to work a half day last Friday, which started the weekend on an expensive note. Not only did I have to give up a few extra hours of pay to leave early, but then Hubby & I headed out to my favorite restaurant for a late-lunch ($29). We also ventured to Home Depot to pick up a few necessary supplies ($44). 

Then a friend came over to visit, and we treated her to dinner ($25). We went shopping on Saturday, and I bought some crafting supplies ($21). I'd hoped to spend about $25 total for dinner & shopping, but wasn't too bad. 

The trouble really started on Sunday though, after she left. Hubby & I decided to spend the day relaxing, and went out for lunch downtown ($18). We bought some new window treatments ($65), and we decided to buy something else ($800). 

The damage, $1002. It'll take a month or two to pay that credit card off, and I'll only be able to make minimum payments on my other credit card for the interim. I don't think it'll be possible to pay off my cards by the end of the calendar year... 

Planning Ahead

I try to create a rough budget ahead about a year out for non-ordinary expenses, and about two years out for other major interruptions to cash-flow. 

Right now I'm hoping to completely remodel the kitchen next summer, and hopefully take care another big outdoor project. We'd also like to take a weeklong vacation, where we can stay at decent hotels and eat at nice restaurants and not worry about sticking to a meager budget. And of course there are a couple weddings that I'm in, which will require me to host or help host bridal showers and bachelorette parties. 

Initially I figured that we could afford to tackle both renovation projects, saving and paying cash as we go. With the vacation, the weddings, and a few other expenditures in the works, I don't think we'll be able to save enough to cash-flow it. 

I can't believe I'm writing this, but I'm already thinking about going ahead with both projects anyways and just putting it on the credit card. My card will be paid off completely by then, and Husband's card will probably be in the $6-8k range. We'd probably be able to save enough to pay off whatever was charged by early 2011 (six months or so later), so the interest accrued wouldn't be too bad. 

I want these projects to be complete, and I hate to delay them until the following summer (two years from now). We've talked about changing jobs and moving elsewhere, and having these projects complete would make it much easier to sell the house. We've also talked about starting a family, and I would want these things to be done before then. 

A Raise - or Not

As I'd mentioned previously, my husband won't be getting a raise for the upcoming year. We were originally hoping that the salary freeze was temporary, perhaps only a few months - but we found out that it will stay in place for an entire year. 

Unfortunately, we also just received notice that only a nominal raise is anticipated for next year, probably around 1%. I guess I shouldn't complain much, since it's better than nothing, but 1% seems like such a tiny amount. Increases in the cost of living due to inflation are surely going to outpace that! 

Unless we can free up more money by paying off debt, we're going to have to make some big decisions about our budget. Best case scenario, it'll take us at least 4 years to pay off the credit cards, auto loans, and student loans. But we'd like to buy a bigger home, and start a family - both things that will divert a significant amount of money from our debt snowball. 

Sometimes it feels like all this debt is never going to be gone.

Falling Short for Sept

Although I paid off one of the student loans this month, I'm going to be at least a couple hundred dollars short by the end of the month.

My checking account, after tomorrow's paycheck gets deposited, will have $1725.

BUT:

• I still need to pay my car payment, $350.
• My revolving balance credit card (the one I use for groceries/gas/etc, then PIF each month) is currently at $401.
• I'll need $100-150 for groceries & gas to last the rest of the month.

Assuming that I don't eat out, or buy anything else, that leaves only ~$850 to apply towards outstanding credit card balances this month. Realistically, I'll spend at least another $100 on random purchases for the house and for entertainment, leaving only $750.

I had hoped to pay at least $1000!