How to Plan for Pre-School Expenses

So, as I’m getting more and more excited about school and getting buried in the difficult decision about which coast I’m going to head towards, I’m also realizing that there will be a LOT of expenses even before I grab up the loans and go into debt. I guess I could throw up my hands and say “Oh well, it’s all going to be negative pretty soon anyway,” but I am promising myself that I WON’T have that mentality. I have plenty of negative networth role models out there that have maintained responsible personal finance

I’m also dealing with the not exactly unexpected, but still rather unpredictable expenses associated with enrolling - $25 processing fee for financial aid with the CSS profile, $1,000 deposit due in March, $350 flights out for admit weekend, $300 for hotels at two weekends, required pre-reading and courses, and probably tons of other stuff I’m not thinking of!

For now, I’m trying to keep spending down in every other area I can control, knowing that lots more is going to pop up. I also added a budget line item called “Unexpected”. Any other budgeting techniques for unexpected expenses??

Huh?

After my confusion on open enrollment in health care benefits a few weeks ago, I introduced some clarity (and some more confusion) after my most recent visit to Walgreen’s to pick up my Rx. Because of the money in my company health care account and how it’s set up, I usually pick up my Rx and it automatically deducts from this money, and I am charged $0. The confusion I referenced before was about what happens after that money runs out. According to the policy, I pay “full sticker” for health care up to my deductible, and then I move to a co-pay. It's not that hard to understand. I guess my confusion is tied to my unfamiliarity with what “full sticker” health care even costs.

Well, I finally ran the well dry on the company funded health care spending account, and was a little shocked to receive the total of $24 for my two prescriptions. One Rx rang up as $.53. The second (my usual monthly prescription which I thought was around $50 “full sticker”) rang up as $23. What? Now $24 is not a lot for a Rx by any means, which is great, but just plain confusing.

But what is clear is that for the last two months of this year (before my health care spending account addition for 2008 kicks in), I need to budget for Rx expenses. I know universal health care is only one of the issues on the plate of president-elect Obama - and we may not get there in one year or one term - 'but we will get there.'

Today's Auto Expenses Roller-coaster

Just spent a LONG day sitting in the waiting room of my car dealership service center after I found out yesterday that all of the lights and gauges on my dash weren't working. I took it to my company's auto service center (which is usually cheaper), and they just winced and said I better take it to the dealer when I showed them the problem.

Not a good sign.... three hours later, the diagnostic reveals that I needed an "instrument cluster" which costs $850.00. So with the diagnostic, that means I'd be paying $1,000 to fix this. Since this seems insane, I asked the mechanic if I could call him in the morning to schedule it, thinking I must be able to work out something with good insurance people or find another quote or something.

I'm feeling so defeated and frustrated as I walk back to my car... but I turn the ignition and everything works again. An auto miracle! I don't know... I'm still wary. Maybe it's just an electrical short that will resurface the next time I turn on my car. In any event, all of this makes me feel like I should have an "unexpected expense" line item in my budget.... $1000!