Getting a new dog or cat can be a lot of work, yeah—but your adorable new four-legged friend can also come with a hefty price tag. Now, that’s not to say pets aren’t valued members of our families. A friend recently told me, “The only regret you’ll have when you get a dog is that you didn’t do it sooner.” But it is important to remember that not all places or people are dog friendly though!
This article will go over important money moves you should make before you bring your family pet home: items you should budget for, why you should consider pet insurance, how to create a pet emergency fund, and ways to pay off your existing debts (i.e. is debt consolidation a good idea?).
1. Budget for the pet necessities
Some costs you can expect to pay include:
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- Pet license: You may need to purchase a license for your dog or cat.
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- Microchip: A microchip can help you locate your pet if they get lost.
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- Spaying/neutering: You’ll probably spay/neuter your dog between 6-9 months and your cat anytime between 8 weeks and 5 months. #RIPBobBarker
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- Other basic initial expenses: Other initial expenses include items like leashes, bowls, crates, toys, litter box, and a bed.
You’ll need to pay for the following on a monthly or yearly basis:
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- Grooming/teeth cleaning: Your pet’s stunning coif won’t happen on its own. Get ready to pay for grooming (the frequency depends on the breed) and possibly professional teeth cleanings.
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- Food: One of your biggest expenses will be feeding your pet. Don’t forget about treats to reward your dog or cat for being such a good boy/girl.
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- Annual exams: Yearly wellness visits can help keep your furry friend in tip-top shape.
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- Medication: At a minimum, you can expect to pay for flea, tick, and heartworm medications.
2. Research pet insurance
Pet insurance can help you keep your pet safe against the unexpected, such as illness or injury. Take time to shop around for different premium rates. You can expect to pay between $30-$50/month. Note that younger pets will qualify for lower rates than older pets and you can expect to pay more if your pet has a pre-existing condition.
3. Create a pet emergency fund
An emergency fund can help you prepare for the unexpected. If you get hit with a large medical bill, you’ll want a pool of money available so you don’t go into debt. An emergency fund should be anywhere from 3-6 months of your pet expenses, though a year is preferred. To create an emergency fund, you can open a high-yield savings account and make monthly deposits.
4. Pay off any existing debts
You’ll want to pay off any existing debts so you can have more cash for your new buddy. Here are 3 debt-repayment methods you should consider:
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- Debt consolidation: With debt consolidation, you’ll take out a new loan—ideally with a lower interest rate—to pay off existing debts. Debt consolidation can help you save money in interest as well as simplify bill paying.
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- Debt snowball: With the debt snowball method, you’ll pay off your debts in order of smallest to largest balance. You’ll make minimum payments on all of your balances but put extra money towards the smallest one. Once that’s paid off, you’ll focus on paying off the next smallest balance. The debt snowball method is great for people who need an extra dose of motivation to become debt-free.
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- Debt avalanche: With the debt avalanche method, you’ll still make minimum payments on all of your balances but you’ll focus on first paying off the balance with the highest interest rate. Once that’s paid off, you’ll move on to the balance with the next highest interest rate. The debt avalanche method can help you save money in interest over time.
Man’s best friend might rack up a laundry list of expenses, but can you put a price on unconditional love? By taking the necessary financial steps, you and your wet-nosed bff will be able to enjoy each other’s company for many (dog) years to come.
By Stefanie Gordon
Stefanie Gordon is a content strategist with over a decade of professional writing experience. She is a former financial journalist who has spent the last several years working in digital marketing. She specializes in content strategy and creation for large and small businesses in finance and technology.
