yes, cycling is definitely expensive. You have some great advice for finding things on a budget. I just want to reiterate that it's not the bike or the gear that makes you a cyclist. Get the things that will make you safe (and don't be shy about telling other cyclists you know what you are looking for...many of us have purchased things and then upgraded later and still have the old ___ sitting around).

And remember that riding a bike that is not the newest/fastest/greatest is a good way to get in great shape. I commute a little over 20 (hilly) miles RT on a heavy mountain bike. I was painfully slow at first but now pass bikes of all sorts (including some really expensive ones!) even loaded down with groceries/books/etc. I just got a road bike and feel like the hills just melt under me.

Good luck and most importantly have fun!
Anne