Budgeting for partly reimbursable costs

What is the best way to budget for partly reimbursable costs? Next month, my wife will be paying for a vision test and a new pair of glasses. About half of that will be covered by her benefits, but the other half won’t. In terms of keeping to a budget, does it make sense to budget for the full cost or only the half that won’t be covered? Any tips you can provide are appreciated!

I think it depends on the reimbursement type. If she’ll be paying up front in full out of pocket, it seems to make sense to budget for the OOP amount but have your envelope “add” instead of “set” at your next fill. That way you might go into the red in the envelope, which accurately reflects your cash flow, but when you receive the reimbursement you’ll record it as a credit and offset the difference, even if it’s next month.
On the other hand, if she’s paying partially out of pocket and partially with an FSA or HSA debit card, I’d only budget the OOP portion since the debit won’t reflect anything in your real spending (at least, I don’t budget/track my HSA; if you do then it makes sense to record it that way).
I hope this helps!

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Thank you, Tiffany. I think the first solution you suggested will work well given our situation.

Be well,


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Another way is to have a Reimbursements envelope, and put the to be reimbursed amount in there (non-FSA/HSA, especially if you don’t track it in GB). This way it is easy to see if you are owed money by anyone, at any time.

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Thanks for the tip!