As I go through this process everyday of planning and budgeting I can see so clearly now why having a slush fund is so important. If I didn’t keep money in a separate account for non-recurring items, they would have been put on the credit card without a thought. The fixed and variable expenses were not a problem in the past but the non-recurring is what ran up the cards. I can imagine that it would be hard to build one up if a budget is already tight. I’m lucky that I was able to start this slush account with a couple thousand dollars of our refinancing funds in January. Then I put all our tax refunds in it as well as a bonus check from work. I try to put as much as possible in every month as well after all bills have been paid, but as you can see, some months you just can’t do it when non-recurring items sneak in.

SON1 makes good money at his part time job so I rarely spend any money on him. But in months to come the following will be coming out of the slush fund in honor of his high school graduation:

$250 – Senior Prom Tickets
$160 – Decline his monthly payment for car insurance and phone service which I will add to my budget this month. Just to be a nice mom!
$160 – Fee for orientation at the University he will attend in the fall.
$200 – Dinner for the family at our favorite local restaurant after graduation ceremonies on the 26th.
$1,500 – A college send-off party for him in July. We have a big family and he has a lot of friends.

Total - $2,270.
Ouch!! :O