Free Money Finance

The Need to Save Money is Life or Death

The following is excerpted with permission of the publisher John Wiley & Sons, Inc. from What Would Ben Stein Do: Applying the Wisdom of a Modern-Day Prophet to Tackle the Challenges of Work and Life by Ben Stein. Copyright (c) 2011 by Ben Stein. 

I keep saying it––and it's true. We writers and actors and economists do not live off on a desert island. We live in the world. We interact with other people. Sometimes these other people tell us heartrending tales.

For many years while I was doing Win Ben Stein's Money,  I had as a colleague a woman now approaching middle age as a member of our production crew. She was and is a highly capable, pleasant woman, whose work product was spectacularly fine.

After Win Ben Stein's Money ended, she got a far better job on a much bigger show and worked on it successfully for eight jolly years. Again, her work product was well liked.

Then, with zero warning, she was fired for absolutely no cause in early 2011. WHAM! Right out of the blue. She was given six weeks’ worth of severance pay and asked to leave.

She was extremely dismayed. Terrified might be a better way to put it. She had savings equal to about three months’ expenditures. Hollywood production jobs are notoriously hard to get. Even someone as talented as she is would have trouble getting the kind of steady work she had on her most recent eight-year run.

The situation gets worse. She has an enormous dog. For the enjoyment of the dog, she bought a home she could barely afford even when fully employed. Now, facing possibly prolonged unemployment, she couldn't possibly afford the home. She considered downsizing to a rental, but it was difficult finding one that accepted pets. She loved that dog the way parents love their children. So she was literally left with no clue for what to do.

So here's the lesson. While my friend fell into some bad luck, the reality is that there is a country in which about half of the working families have savings of less than two months’ expenditures, and never imagine that they might lose their source of income. That country is called the United States of America. This is a country of wonderfully kind and pleasant human beings. I marvel at how sunny they are as I crisscross the nation on my endless travels. But it is a country of many wildly imprudent, slobby people where money is concerned.

This is a country where, as a matter of course, men and women use the last of their savings to buy big-screen TVs or boats or trips to Buenos Aires, always in the magical thinking delusion that things will somehow work out right in the end––just as they do in movies.

The problem is that life is not the movies. Things very often do not work out right. This problem of things turning out badly is especially cruel when it comes to money. So much of this country is exposed to likely bad outcomes where money is concerned that it approaches crisis levels.

It is so important that you not let yourself be included in this vulnerable, exposed group, that it's impossible to overstate the seriousness of the matter. YOU MUST HAVE SAVINGS.

Maybe you don't need them if you are a Rockefeller and you are under 16 years old. But everyone else needs them.

Save a Bundle by Keeping Your Dog Under Control

Here's a shocking stat from MSN Money:

Last year, the average cost of a dog bite [insurance] claim was $26,166, according to the Insurance Information Institute.

Ouch! That's a very nice new car!

A bit more on how insurance companies handle dog bites:

Some states give you an initial break -- a sort of "free chomp" allowance -- commonly known as the "one-bite" rule. In these states, an owner cannot be held liable until the animal's "vicious propensity" has been established, typically in the form of a first bite. Nearly two dozen states have adopted a form of the one-bite rule, most of them clustered in the western and south-central parts of the country.

So almost half the states have one-bite laws and the other half don't. I didn't see a list of what states do and don't and couldn't find it quickly on Google, but you probably can if you search a bit using your state's name in the search.

In addition to the cost of the bite itself, having a biting dog can mean other problems:

Regardless of your local laws, a dog with a checkered history can sabotage your chances of getting home insurance.

So, what's the solution? It's pretty easy actually:

"Your best bet to avoid this issue is to be a responsible pet owner," Paul says.

I see people walking their dogs all the time with no leash. To me, that's a recipe for disaster. They clearly can not control the dog and many bad things could happen -- the dog could dart in front of a car, he could attack another dog, he could bite someone, and on and on. Is it really that hard to keep a dog on a leash? Apparently so judging by the many that can't seem to do it. And apparently it's also difficult to pick up after your dog uses the potty, as evidenced by the droppings constantly left on my front yard. But I digress.

This post is simply a reminder to keep your pet under control. Doing so could save you some big money.

P.S. As I was writing this post, I found this site on "dog bite law". I got a chuckle out of it. I guess it's true that you CAN find everything you'd ever imagine -- and much you wouldn't -- on the web. ;-)

10 Most Expensive Pet Health Problems

Money Talks News lists what they call the 10 most expensive pet health problems. I'm not sure if this list is really the ten most expensive or the ten most common (they do rank them by the number of occurrences) pet health problems that cost more than $1,000. The reason I say this is because I've seen/read about/known many people who have had claims for many thousands of dollars (for cancer treatments or transplants, for example.) Perhaps the difference between these and what I've seen is that what people often quote are total costs for treating a disease while the items listed below are single treatments that could be part of a series to get rid of a disease/problem. Anyway, here's the list along with the average cost per claim:

1. Torn knee ligament/cartilage - $1,578
2. Intestinal – foreign object - $1,967
3. Stomach – foreign object - $1,502
4. Intervertebral disc disease - $3,282
5. Stomach torsion/bloat - $2,509
6. Broken leg (plate) - $1,586
7. Laryngeal paralysis - $2,042
8. Tumor of the throat - $1,677
9. Ear canal surgery - $1,285
10. Ruptured bile duct - $2,245

No matter what the numbers actually mean, the conclusion is clear: there's potentially a $1,000 to $2,000 expense lurking around the corner for almost any pet owner. As a result, my advice is to bump up your emergency fund accordingly when you get a pet so you can cover any unforeseen large expenses easily without having to go into debt.

Getting a Pet and Your Emergency Fund

Following our conversation on how expensive pet health care can be, I found this piece from MS Money that asks if your pet will bankrupt you. The article covers many of the same issues we discussed, and I'm not going to re-hash them here. But the post does offer some good "think before you get a pet" advice that I think is worth sharing. The highlights:

Before you seek out or agree to adopt a pet, make sure you understand the setup and continuing costs in both money and time. This chart from the American Society for the Prevention of Cruelty to Animals outlines the first-year expenses you can expect for various types of animals, ranging from $235 for a fish to more than $1,800 for a large dog. Rescue groups and discussions with other owners of your type of pet can help you understand the time commitment involved. Also, check with your homeowner’s insurance company to find out if it blacklists any dog breeds. If so, consider other breeds or shop around, since insurers differ considerably in what they will and won't cover.

Great advice IMO.

My experience is that many people do not fully consider the time, energy, and costs of getting a pet before doing so. And if they do, many drastically underestimate all these factors. So my advice would be to become as informed as possible, check out the cost chart above, and then decide if a pet (or which pet) is good for you.

In addition to pre-purchase consideration, I always advise people that if they get a pet, they need to increase their emergency fund to account for potential pet health issues that may arise unexpectedly. And this amount should be in addition to your six months of living expenses (so if your six months of living expenses is $5,000 and you want an extra $2,000 for potential pet emergencies, you now need $7,000 in emergency funds.)

For the most part, you should NOT simply say, "I already have an emergency fund and it can cover any pet-related health issues." (I admit that the larger your emergency fund is, the more leeway you have to not add extra amounts when you get a pet.) Why? Because a pet emergency can then drain a good portion (or all) of your emergency fund, leaving you with no back-up in case something else happens. Here's an example:

Last week, I mentioned that my cat just died. Not only was his passing heartbreaking, it was expensive. But as I said in that post, I was very happy to be able to write a check from my emergency fund and not worry about where the money would come from.

Since I’m still paying off debt, that $800 check represented most of my meager emergency fund. I’ll rebuild it over the next few months, but in the meantime I don’t have much of a cash cushion. I have to just hope there won’t be any subsequent emergencies.

The writer then goes on to say that unfortunately some extra unexpected emergencies have already popped up. The details:

Two weeks after my cat’s death, I developed a nerve problem that temporarily crippled my hands. The cause is unclear, but my neurologist recommended some changes to my work routine while he runs tests looking for the root problem.

Suddenly, I was facing medical bills, expensive new equipment, and software to enable me to work, plus a vastly reduced workload while I waited for my hands to heal. How was I going to cover this with only $200 left in my emergency fund? Especially the week before Christmas?

The past few weeks have seen me at a doctor’s appointment almost every day. Even my small $15 to $25 copays add up to big bucks when I see so many doctors. In addition, I’ve had to pay for medications and a few pieces of equipment, like protective foam pads for my elbows. That all quickly drained the $200 left in my emergency fund.

To me, these two pieces put together illustrate a couple things:

1. You need to have an adequate emergency fund in the first place. The writer above is working at paying off debt (yet another data point showing how debt can hinder people financially), so she had a lower than needed balance. But many people have lower than needed emergency fund balances and it isn't because they are paying off debt. Don't get caught with too little money saved!!!!

2. If you get a pet, you'll need to bump up your emergency fund at least a bit (if not a good amount) to account for potential health-related costs of pet care. Or you could get pet insurance, though I've heard mixed results on how well that actually works.

As you know, I tend to be on the conservative side of things when it comes to money, so "more money saved" is hardly ever a bad idea. And if you get a pet, it's an especially good idea IMO.

The $20,000 Pet

Smart Money tells the story of a 7-year-old golden retriever who needed tests, blood work, surgery, radiation and then another surgery. Total price tag: $20,000.

They go on to detail the increasingly costly world of pet health care. Here are some highlights:

It's no secret that Americans love their pets. But these days, all that love is leading to an unprecedented level of expense for millions of owners, who are only beginning to understand the pet-world concept of sticker shock. Caught up in a wave of new medical options and lured by an increasingly sophisticated cadre of veterinarians, pet owners across the country are forking over thousands — and even tens of thousands — of dollars to treat illnesses that would have gone undiagnosed or untreated just a few years ago. And then doing it again if they have to. Of course, pet owners and most vets have the animals' best interest in mind. But that doesn't make it any easier: With health insurance covering the humans in many families, it's not unusual for pet owners to spend far more money on health care for their cats and dogs than for their sons and daughters. Even the Great Recession failed to take a bite out of Fido's health care tab. According to a report by market-research company Packaged Facts, Americans spent $20 billion on veterinary bills in 2010 — an 8.5% increase from a year earlier and more than double the amount spent just a decade ago.

Much of that money is being spent on new medical technology. With some of the advances in human health care spreading to the animal kingdom, pet owners have many more options for treatment—and many more chances to fork over money to cure their pets or at least prolong their pets' lives. Dogs and cats can have pacemakers implanted at a cost of $1,000 to $1,500, while pets with kidney failure can get a kidney-clearing procedure that runs $20,000 to $25,000 for just the first few weeks. Not long ago a vet would most likely have recommended euthanasia for a cat or dog diagnosed with cancer or another serious illness. Today high-tech procedures and equipment, such as chemotherapy and MRIs — and yes, CAT scans — allow for better diagnosis and more-advanced treatment.

We've discussed this issue before, but now it appears that the costs can be out of control. I say "can be" because I'm guessing (I don't have a pet) that the situation above is extreme. However, just because it's extreme doesn't mean that it can't happen to you. Therefore, you need to be prepared for such an expense.

To me there are really two options to be ready for something like a $20k pet bill: pet insurance or an increased emergency fund. With the debate about pet insurance questioning whether or not it would pay for a major expense anyway (also see Why Pet Insurance is Usually a Dog), I think I would opt for the increased emergency fund. If you're a pet owner, I'm interested in if you've done either of these or something else (or nothing) and why. Please let us know your thoughts in the comments below.

Previously when I've asked what people would spend to save their pets, many have said "as much as it takes." But in the past "as much as it takes" may have been $5,000 at the very, very highest. Now we're talking $20,000!!! Is the answer different? I'm guessing so. (Research shows that while most pet owners, 62 percent, would likely get vet care if the bill was $500, the percentage drops below half when the cost hits $1,000. The number drops to 35 percent if the cost is $2,000 and to 22 percent if it reaches $5,000. Source: What People Would Spend to Save Their Pets.)

So here's the pet question for the day: if your pet was facing an illness/disease that could be treated with a decent chance of success but that would cost you $20,000, would you do it? If your answer is "yes", where would you get the money?

Is Pet Insurance a Rip Off?

Wise Bread recently featured a story on pet insurance. A quick overview:

• The dog was injured by another dog biting it
• The treatment for the injury was $545.53
• The owners had VPI per health insurance
• The VPI website shows all sorts of examples of where people are reimbursed a good portion of their expenses (65% was the lowest example covered)
• Based on these, the owner thought he'd get back at least 50% (being conservative)
• The owner submitted his expenses to VPI
• He got reimbursed for $135 (less than 25%)
• He downloaded the bill reimbursement forms and "they read like quantum physics" ;-)

Here's his conclusion:

As I tried to make any kind of sense of this, I realized something: I wasn't supposed to make sense of it. This is made as complex as possible so average Joe's like you and I don't know what we're expected to receive or how to fight it.

Ha!

A few thoughts from me:

• If you're a regular reader, you know that I've covered how expensive pets are many times. This is yet another example.
• When I looked through all the VPI case studies, I realized that there are many more (expensive) ways for a pet to need health care than I had imagined. Ugh.
• We all know that an insurance company's business is to take in premiums and pay out as little of those premiums as possible, right? So why is it a shock that they make it hard to get anything back.
• FMF readers that have said they are counting on pet insurance to help them out in case of trouble might be in for a rude awakening. As the author of the Wise Bread piece said, "In this case we were lucky. 76 percent of $545 is something we can afford right now. But what if it was 76 percent of $7,000?" Yes, 76% of $7,000 would be trouble for many people.

And a few thoughts from commenters to the post (and my take on them):

• "I personally put that amount away in a bank account just for such an emergency & not even mess with their insurance."

Good idea -- self-insure. I've mentioned several times that people getting pets need to ramp up their emergency fund as a result.

• " 'We were considering canceling VPI, but we figure 24 percent is better than nothing.' Actually it is worse than nothing. You paid $14 a month for 18 months. So you paid them $252 to reimburse you a measly $135. With no insurance you would have been out $545.43, but instead you're out $662.43."

Pointing out the (painful) truth.

• "Similar to your experience, when I made a claim after over a year I found that the amount reimbursed on a small claim was about 25%. There's the deductible and then some things aren't covered... When I read the policy more carefully I realized that coverage could be changed unilaterally by the insurance company depending upon the amount of claims in that area generally. Or that only one knee would be covered not two in dogs prone to knee problems."

Seems like the system is rigged in favor of the insurance company, huh?

• "I plan on discontinuing insurance and (as others have suggested) contributing the amount I would have paid to the insurance company each year to a dedicated savings account. This is why: No matter what level of coverage I buy, I'm contributing that amount each year to my cat's health. If I buy insurance, the money is gone. It may or may not be reimbursed substantially in an emergency. If I set it aside, it's there until it's needed. I can then use all the money to pay my vet instead of gambling on an insurance company."

Good point!

There are many other comments -- some pro pet insurance but most against it -- as well. Nothing exciting enough to re-post here.

So what's your take? Is pet insurance a good deal? Or is it better to save the money yourself? Or perhaps there's another alternative?

What People Would Spend to Save Their Pets

Several years ago I asked FMF readers how much they would be willing to spend to save their pet's life. As you might imagine, the answers covered a broad range. And of course, there was no way to determine any sort of general consensus from the responses. But now I've found one. Kind of.

MSNBC reports what people would spend to save their pets as follows:

Money is a consideration for the majority of people when dealing with the cost of health care for animals, according to an Associated Press-Petside.com poll conducted by GfK Roper Public Affairs & Media.

While most pet owners, 62 percent, would likely get vet care if the bill was $500, the percentage drops below half when the cost hits $1,000. The number drops to 35 percent if the cost is $2,000 and to 22 percent if it reaches $5,000.

Only at the $500 level are dog owners (74 percent) more likely than cat owners (46 percent) to say they would likely seek treatment. In the higher price ranges, the two are about equally likely to seek vet care.

So, what does this tell us? Not much really. Yeah, it gives us some interesting facts, but it doesn't really reveal anything. As someone who has worked with survey results for 20 years, I can verify that there's a HUGE difference in most cases between what people say they will do and what they actually will do when the situation arises. In general, people over-estimate the "good" they would do in order to feel better about themselves. As such, I think the number of people who would actually spend the amounts above to save their pets is much lower than what's reported.

But there is a useful set of reminders in this information. Namely:

• Pets (and especially pet medical care) can be expensive.
• Before you get a pet, you should recognize this potential expense and consider whether or not you really can afford a pet.
• In addition, you need to have some sort of guideline as to what you will and won't spend to save a pet's life. Then, you need to save accordingly so your emergency fund can cover an unexpected, high-cost pet medical bill.

Anyone out there have anything to add on the issue of pets and spending to save them?

Budgeting Tips for Getting a Pet

It's been awhile since I've talked about the cost of pets and frankly I thought I had said everything that was to be said on the topic. Then I found this piece that lists budgeting tips for a new pet as follows:

• Estimate the one-time “start-up” costs and the ongoing “maintenance” costs of the pet.
• Slot those annual numbers into your budget.
• Prepare for unexpected surprises.
• If the numbers aren’t adding up, make reasonable decisions.

For cost specifics, they offer the following:

These costs vary depending on the type of pet, the size, and its health. The American Society for the Prevention of Cruelty to Animals published an easy to read chart that estimates the costs of adopting pets. They estimate that a medium sized dog will incur $565 in capital costs such as neutering, training, collars and leashes. But the figure will be much higher if your dog has any health issues. The ASPCA estimates the same dog will also cost about $695 a year in annual upkeep. (All said, that’s $1,580 in the first year as long as there aren't any major health issues.)

Overall, I think it's like any other purchase:

• Consider the pros and cons (there are many besides simply cost, of course).

• Consider the cost. Personally, I'd estimate high (I estimate high on everything -- better to do this IMO and not be surprised by higher-than-expected costs). Plus, I'd either get pet insurance or increase the amount of my emergency fund.

• Decide "yes" or "no". And remember, this isn't like buying an item that you can dump after a year if you don't like it -- it's a living being and you're making a long-term commitment. Hence you need to give lots of thought to the decision (unfortunately, many get caught up in the emotion of the decision and don't consider all the practical issues.)

All you pet owners out there -- anything I missed?

Another Pet Reminder

I haven't posted on the cost of pets in awhile and had actually grown tired of the topic (haven't I beaten it to death in the past?) Then I get this email from my wife:

Our neighbor [name removed] just came over to tell us that their dog [name removed] is in the emergency room.  They returned from vacation to find out that he accidentally ate most of the bottle of his arthritis medication (70 pills or so). They aren't sure what to do at this point.  It's $400 a day to keep him there -- he's on an i.v. and kidney dialysis.

This is a sweet dog in our neighborhood and very nice neighbors, and I feel for them. What a tough decision to have to make. On the financial side, my guess is that they can afford his care as long as they need to, but the bigger question is should they keep it going. He's very old (can barely walk) and was literally on his last leg before this accident.

Let this serve as another example to all the others who may get a pet without thinking about the potential costs -- pets can be very expensive! It doesn't take much for several hundred dollars to go away very quickly in pet medical bills. Or, as illustrated in this case, several thousand dollars (one week in the condition this dog is in would run $2,800.) The solution? Beef up your emergency fund.

Make Six-Figures Walking and Watching Pets

When I suggested that you make money on pets as part of my 20 ways to make more money, little did I know how much a person could make by simply walking dogs and sitting for pets.

Just how much can you make, you ask? Well check out this person from Parade Magazine's recent "What People Earn" issue. Here's her profile:

Tammy Roussin, 37
Pet sitter/dog walker
St. Louis, Mo.
$100,000

This entry REALLY caught my attention when I saw it in the magazine. I thought someone could make maybe $30k a year or so doing this. Who knew you could actually make six figures?

A few more thoughts:

1. Tammy's only 37 years old. Not a bad income for someone that age.

2. $100k in St. Louis is like $300k in New York, isn't it?

3. I thought that maybe she owned a pet sitting/dog walking business. I couldn't imagine that she made that much on her own simply sitting for/walking pets. So I went Googling and found this website. She does own a business, but she's one of only three employees, so it's not far from a one-person operation.

4. At $50 for an overnight stay to $16-$18 for a dog walk/cat visit, having a pet can be very expensive. Don't say I didn't warn you. ;-)

Pets Hurting with the Economy

Here's a sad story about the cost of pet care and how some people are choosing NOT to care for their pets because of the bad economy.

Again, people, PLEASE think through the financial commitments of having a pet before you get one. For guidance, check out the cost of pets according to the SPCA.

Financial Planning for Pet Heathcare Costs: Start a Savings Account Now!

JD recently talked about the costs of pets, a subject I've covered quite a bit (to the dismay of many of you.) ;-)

Anyway, he brought up the idea of pet insurance and whether or not it was a good investment. I thought the following comment from one of the readers was especially useful:

I’m a veterinarian and get the question about pet insurance frequently. There are a lot of plans out there and I encourage people to do their homework. My understanding is that generally the premium starts low and remains low if you began insuring your pet when they are young and keep the policy active throughout their lives. Also, most plans work as indemnity plans (again, as I understand it). So, you’ll still need to pay the veterinarian’s fees up front and then be reimbursed by your insurer.

Nonetheless, I’ve had many clients tell me that they wouldn’t have been able to do life-saving procedures if it wasn’t for the insurance policy that they have on their pet.

Still, my advice is to begin an interest-bearing savings account for your pet while they’re young and put a small amount ($25/month over 10 years will get you a long way, even with specialty care) in each month for emergency and specialty care, not for routine care. (In this way, you don’t lose control of your money like you do when you pay a premium on an insurance policy.) Regardless of what kind of pet you own, you’ll need that money someday.

I think that the "$25 a month savings account" suggestion is a GREAT idea!!! As many of you know, one of the main costs of pets is later-in-life healthcare. So if you start early on and save over the life of your pet, you should have a really good nest egg saved up if/when your pet needs expensive treatment. Consider it a self-insurance plan. And, as he notes, you'll have access to the money in the meantime in case you really need it.

Or, you could do as I have suggested and simply increase the size of your emergency fund. I guess this idea is very similar to that, though it is a useful spin to keep the money separately as you'll be able to see how much you have accumulated for the express purpose of paying pet health expenses.

Anyone out there do this?

Stop Buying Expensive Pet Food (And Wet Food Too)

Here's a VERY interesting piece from Consumer Reports on pet food. There were two money-saving ideas packed into this evaluation of pet foods and I wanted to highlight them both. Let's start with this one:

"There's no scientific evidence that any food is better than the next," says Joseph Wakshlag, D.V.M., Ph.D., an assistant professor of clinical nutrition at the Cornell University College of Veterinary Medicine. Pets can thrive on inexpensive food or become ill from pricey food. If your animal is active and healthy, the food is doing its job. A higher price could mean better ingredients and better quality control during and after manufacturing. But you might also be paying for pretty packaging, marketing, or a fancy name.

So you can stop buying that high-priced food for your pet because it's "better" for him. Turns out it isn't (unless your pet has a special need -- they cover this later in the piece.)

I also found this one to be interesting:

Do wet and dry [food] differ nutritionally? No, but there's a cost difference: Wet foods contain about 75 percent water, so you need more to get the same calories. The experts we spoke to said that the decision usually comes down to price, convenience, the pet's preference, and any health issues. Cats with kidney or urinary problems might benefit from the moisture in wet food, for example, and animals with dental issues might benefit from dry food.

In the absence of any pet health issues, looks like dry food is the way to go. It's the same nutritionally and a better value.

Now go out and buy Fido a nice doggie sweater with the money you just saved on these two tips. :-)

Is a Virtual Watchdog a Good Security Device?

We've gone back and forth on the pros (love, friendship, protection) and cons (mostly cost) of pet ownership on this blog. In these discussions, one of the reasons some people say having a pet (in particular, a dog) is a good idea is because a dog serves as a deterrent to potential thieves. After all, why would someone break into your home and face what could be a vicious dog when they could simply move on to some dog-less person's property?

Well, if you want this sort of protection but are still leery of the cost (or whatever) of an actual pet, there's an electronic device that delivers a "barking dog" to discourage thieves. It's called the Rex Plus, and Consumer Reports just reviewed the product. Here's what they had to say about it:

Rex is no mastiff, but it could be useful. The device responded to motion behind wood and plaster, from up to 30 feet away in some cases, although it ignored motion behind steel and around faraway corners. (You might need more than one device to protect separate entrances, and you'll need to adjust range and volume for the best effect.) The barking sounds real but isn't the deep "woof" of a huge dog, and there's no growling. Rex might deter a burglar looking for an easy target, our tester reports, "but someone who knows you have the Hope diamond in your house will probably not be deterred by the sound of this dog."

So there you have it -- a potential solution to thwart thieves without the cost, allergies, commitment, etc. of a real live pet. :-)

Anyone have anything like this? I'm wondering if it works or not in "real life".

Pets Feeling Impact of Economy

Here's what I've been trying to avoid with all my posts on the costs of pets:

Over the past eight months, shelters around the county have seen more animals turned in because their owners have lost their homes or jobs. The shelters are also straining to meet a sharp increase in requests from people who are struggling just to provide food for their pets, says Stephanie Shain, director of outreach for the Humane Society of the United States.

A spokesman for the Humane Society of Douglas County in Georgia said the abandonment rate is tenfold what it was two years ago, before waves of foreclosures started hitting neighborhoods around the county. With more animals coming in and fewer people with the resources to pay for a pet, nearly all shelters there are overrun.

This is why I talk often about the expense of pets. Most people don't think an animal costs that much, but they do. And they're a living, breathing creature -- you can't (or at least shouldn't) simply abandon them. That's why I want people to THINK about the cost of a pet before they get one. Be sure that any potential pet fits into both your budget and lifestyle. And if they don't, then refrain from getting one. Otherwise, you may end up having to make a tough choice that no one wants to make.

One last thing, the piece shares a money saving tip as follows:

Also, pet owners don't have to choose between taking care of their pets and taking care of themselves. Most local shelters offer vaccinations, spaying or neutering at a fraction of the cost of a private veterinarian's office.

Just thought I'd share this in case it could save anyone some money and/or heartache.

Give Me a Break

In Yahoo's list of six unusual high-paying careers they include this one:

Pet Psychologist -- Don't be so shocked. Even Sparky sometimes needs help to keep from gnawing through the neighbor's bed of prized roses. Once the local vet has ruled out physical ailments that can contribute to rude pet behavior, people who love their animals may need to call in a trained, certified behaviorist or pet psychologist. As with human patients, pets can be analyzed and taught to act contrary to destructive impulses. There are even certified applied animal behaviorists. To get into the field, you'll need a master's or doctorate degree in psychology, preferably with additional work in zoology and animal behavior. Salaries vary greatly by locale, but can be upwards of $90,000 a year.

Ok, I don't know which surprises me more -- that this position actually exists or that someone holding this job can earn $90k a year.

Just another expense to add to the cost of a pet. Sheesh.

Anyone out there use a pet psychologist?

An Example of Why I Say What I Do about Pets

Here's a comment left on my post titled Six Ways to Save on Pet Costs:

Don't buy a pet. I made the mistake of buying a dog in 2000. It turned out that this dog is allergic to just about everything known to dog including cats (its highest allergy - reaction off the scale), 17 different types of grasses, and a dozen or so animal proteins. The first 5 years of her life cost me about $2500 - $3000 per year in vet costs. We are down to about $1000-$1500 per year in vet bills now. No amount of DIY could have saved what I have BLOWN on this dog. The dog doesn't even like me on top of that and it urinates wherever it feels like IN THE HOUSE!!! Now my wife and son won't let me get rid of the d--n thing. Bitter? No, I'm not bitter!!!

It was a "cute" comment and I had a chuckle over it, but the thoughts do illustrate the key principle I emphasize over and over again -- think about the costs of a pet before you get one. Sure, this is an extreme example of what a pet could cost, but even in normal situations, pets aren't inexpensive. And, if you end up with a "lemon" like the guy above, you're stuck (it's not like you can simply discard a pet -- it's a living creature, after all.)

So if you're in the market for a pet, just be sure you understand all the costs associated with getting one and are financially able to meet those commitments. Believe me, it will make for a much more pleasurable experience for you, your family, your pet, and your wallet. ;-)

Six Ways to Save on Pet Costs

The following post is from Dr. Scott Line, associate editor of the The Merck/Merial Manual for Pet Health. Note: The following tips do not replace consultation with a licensed veterinary practitioner.

With economic pressures on the rise, consumers are looking for ways to tighten their belts while maintaining the best level of care they can for their pets. In the midst of the downturn, veterinarians around the country have observed a decline in visits and spending for recommended procedures.

Pet health and quality of life don't have to become economic casualties. Through a not-for-profit pet health resource - The Merck/Merial Manual for Pet Health - Merck and Merial, leading global pharmaceutical and animal health companies, are teaming up to educate pet owners about the power of preventive measures as the cornerstone of a sound financial strategy for pet care. The book is an easy-to-read version of the manual veterinarians have been using for years, and it might be one of the most thoughtful and practical gifts you can give to the pet lover in your life this holiday season.

"We have known for a long time that early detection of ailments and proactive health maintenance can extend a pet's life by years, but it can also help your pocketbook as well," said Scott Line, DVM, associate editor, The Merck/Merial Manual for Pet Health. "In the long run, it is dramatically cheaper to prevent health problems than it is to treat them, and consumers need to keep this in mind when seeking ways to reduce costs in their pet care budget."

1. Be a Grooming DIYer: Grooming is an important part of maintaining your pet's health and condition, but it is a skill anyone can perform with practice. An added incentive for taking an active role in your pet's grooming is that you can identify problems early (e.g., bumps, lumps, changes in coat quality, etc.) that a groomer may not think to tell you about. Doing the grooming yourself can save as much as $400 to $1,000 per year, but to avoid a costly mistake be sure to use products, such as shampoos, that are designed for pets and not people.

2. Bulk Up: Resist the urge to buy pet food, heartworm and other preventatives in smaller quantities to cut immediate costs at the cash register. The reality is, as long as you're mindful of expiration dates, buying in bulk is generally cheaper.

3. Don't Wait to Vaccinate or Medicate: Making sure your pet is current on all recommended vaccinations will save you a bundle in the long run because you'll help ward off preventable diseases. Vaccinations such as one that prevents rabies, for example, are particularly critical and may save your animal's life. Similarly, routine medications such as heartworm preventives should be given every month. Skipping doses can be expensive, as treating heartworm costs as much as $800 - $1,000. In addition, treating the disease is risky and can be painful for your pet.

4. Spay and Save: For the average pet owner, spaying or neutering is a must. If you have a limited income, you may be able to save by taking advantage of low-cost clinics for these services. Keep in mind that spaying or neutering your pet can prevent the immediate expense of new pets in your family and the societal expense of unwanted pets being turned in to shelters. It also reduces the occurrence of some common diseases, such as breast cancer in pets.

5. An Ounce of Prevention: Prevent an unplanned, emergency vet visit this holiday by doing your part around the house. Many items that are a routine part of holiday celebrations could be toxic or harmful to your pet. Examples include:

• Mistletoe and even poinsettia, while beautiful, are highly toxic to dogs and cats

• Chocolate and macadamia nuts are toxic as well, and yeast-based bread dough can actually be fatal to your pet as it causes intestinal bloat

• Tinsel, if swallowed by a curious kitten or puppy, might cause intestinal blockage. Consult The Merck/Merial Manual for Pet Health for more in-depth guidance.

6. Brush Up: Proper dental care is an often-neglected component of the pet health regimen. Regular use of an inexpensive toothbrush and toothpaste designed for pets can delay or avoid a professional cleaning costing several hundred dollars. You also can purchase pet food designed to help eliminate tartar.

$10 Million Dollar Cat

Ok, forget everything I've said about how expensive pets are. This one's worth a fortune! ;-)

Seven Ways to Save on Pet Costs

Check out this comment on my post titled Your Dog Could Bankrupt You:

It's not just the liability. Vet bills. Fences. Food. Over the last 9 years, I've spent over 40K on those things for my two (now one) dogs. $15K just this year in vet bills. Dogs/cats are not a financially wise choice.

Yikes! Maybe I wasn't so wrong with my over-the-top estimate! (And before someone blows a gasket reading that link, I do have a more-realistic estimate on the costs for owning a pet.)

Anyway, given the above comment, I thought it was worth it to post a recent Parade magazine piece listing seven ways to save on pet costs. Their list:

• Keep pets fit and trim. Most dogs and cats in America today are overweight, and those extra pounds increase the likelihood of serious health problems such as arthritis, diabetes, and cancer.
• Learn to do things yourself. Most people can learn to handle basic pet grooming at home, from bathing to nail trims.
• Minimize risk from accidents. Saving the life of a pet after it has been hit by a car or poisoned by hazardous foods, plants, or medications can cost thousands of dollars.
• Work with your vet to cut costs. Ask if your vet offers discounts for senior citizens, multiple pets, and promotions such as Dental Health Month.
• Buy smart. Shopping for pets can be great fun, but your furry friend probably doesn’t need that new designer collar.
• Trade goods and services. Other pet-lovers are likely also feeling the squeeze, so look into bartering to get what you need.
• Be prepared for the worst. Health insurance for pets is a rapidly growing industry for a good reason.

We're still debating on whether or not to get a pet if/when we move, but the main issue isn't cost. We want to make sure we have enough time and commitment to give to a pet. We're a pretty busy family and don't want to get an animal and then just leave it home alone and/or with little attention. Furthermore, we want to be sure that all the pet care tasks don't fall to just me and my wife. Not sure how we're going to get past that issue. And so the discussion continues...

Your Dog Could Bankrupt You

Add this to the list of money responsibilities associated with having a dog:

The Santa Rosa, Calif., case was horrifying: A 90-pound American bulldog attacked a woman walking her own dog to a school bus stop to meet her children, biting off her nose.

The owner was sentenced to four months in jail and 100 hours of community service.

The victim, who endured several surgeries to rebuild her face, was later awarded $900,000 in a civil settlement. Her husband and children were awarded $33,000 each, for a total settlement of $1 million -- the upper limit of the dog owner's insurance policy.

Think this is one simple case and that it can't happen to you? Here are some interesting facts:

Dog bites make up one-third of all homeowner insurance liability claims, according to the Insurance Information Institute, and cost insurers $356 million in 2007.

The average cost of a dog-bite claim was $24,511 in 2007, the institute found. That's 11.5% more than the year before and 28% more than in 2003.

More than 4.7 million people are bitten by dogs annually, according to the national Centers for Disease Control and Prevention. Nearly a million of them need medical attention. Some die. Last year, 32 people in the U.S. were killed by dogs, according to Los Angeles attorney Kenneth Phillips, who specializes in dog-bite cases.

And here's what they say you can do to limit your liability:

• Research breeds before you buy.
• Be honest with your insurer. Not telling your insurer you own a dog is a big risk.
• Spay or neuter. Dramatically reduces the chances that a dog will bite.
• Invest in some training. A dog needs to understand its role in your family "pack." All kinds of behavioral problems can result if it doesn't.
• Take sensible precautions.
• Don't forget leashes and fences.
• Get adequate coverage. Most homeowners insurance policies come with liability coverage that tops out at $300,000. You'll probably want more [such as] a $1 million "umbrella".

Most of this was new news to me. For instance, I didn't know it was advisable to report a new dog in the family to your insurance agent. And I didn't know that dog bites happened so frequently.

I'm sure that most people don't increase their level of insurance when they get a dog (even those who get a breed more likely to attack/bite.) Anyone out there do this when you got a new dog?

Our Potential Dog (And Thoughts on Costs)

Ok, before all the "you hate pets" people jump on me, let me say that I DO NOT HATE PETS. In fact, we're one new house away from having a dog ourselves (our current home isn't suited for the lifestyle we'd like for our dog -- not a lot of room to run and be outside). Yes, I do post frequently on the cost of pets because I believe most people don't consider the (often substantial) costs associated with pet ownership when they decide to get one (by the way, the same holds true for having kids, except the costs are even greater). So I'm trying to educate people on the true costs of pet ownership so they can make informed decisions.

Now that I have that out in the open, here's a piece from the Wall Street Journal where the author laments the costs of his three dogs. An overview:

Dogs are deceptively expensive. The two most obvious costs -- what you pay for the dog and the cost of dog food -- aren't close to the biggest ones. Instead, dogs bleed us through veterinarian costs, boarding costs, and the damage they do to our homes and yards.

He then tells the story of one of his dogs -- how it got a broken leg and then a mysterious illness. Both of these were expensive to fix. Then the author compounded his problems with a couple more dogs:

We have since acquired a couple of smaller dogs, a Chihuahua and a terrier. It's too often the same story. Dog eats something it shouldn't. Dog gets sick. Dog goes to vet. Vet keeps dog for observation or to run tests. Owner eventually pays $500 to vet and takes dog home. Dog gets better on its own.

Ha! ;-)

We've been through the "true costs of a dog" exercise ourselves and realize that a dog is an investment -- in time, money, affection and so on. But we have the money, time, etc. and just need the place. The only remaining issues for us:

• Who does the various tasks associated with having a dog (feeding, exercising, playing, grooming, potty duty, cleaning, etc.). My wife is holding firm that she wants FIRM commitments from the kids before we get a dog. I'll let you know how that one goes. ;-)

• What type of dog to get. Oh decisions, decisions.

I'll keep you informed on our progress, but you'll read a "we bought a new house" post way before you read a "we got a dog" post, so it will take us awhile before Rover becomes part of our family. ;-)

10 Tips to Save Money on Pet Care

Here's a listing of 10 tips to save money on pet care including:

• Spay or neuter. Spayed and neutered pets have fewer health and behavior problems.
• Keep ‘em healthy. Pet obesity can lead to other health problems, such as bone and joint trouble.
• Buy toys and chewies in bulk.
• Make your own dog or cat bed.
• Consider low-cost clinics for basic veterinary services.
• Shop around for medications. Your vet isn’t the only source for pet medications.
• Become a pet chef. Homemade pet food and treats are a great way to both save money and to control your pet's diet.
• DIY pet-sitting. Pet-sitters are great, but if you have a friend or neighbor that also owns a pet, consider swapping services when you go out of town.
• Make your own safe carpet cleaners.
• Take on the grooming.

Here's my take on these:

1. We always had our pets spayed or neutered. Didn't want any babies or the other difficulties that can come from a pet not "fixed."

2. Our cats were ALWAYS big/fat. Our dogs were fine, but they were outside and got tons more exercise. Cats and exercise don't seem to go well together.

3. How about skipping the toys or making your own?

4. We had a special word for our cat's bed: couch. My dad did save some money by making a doghouse, though.

5. Not sure where I'd find a low cost clinic around my home.

6. Just like you would with your own prescriptions.

7. My mom is the queen of this. Her dogs eat "well", but I'm not sure it's the most healthy food. It's human food re-worked with some pet food too. The dogs sure like it.

8. Another idea: ask someone to house sit for you. You can pay them about the same as taking the dog to the kennel, but you get your house watched too!

9. You mean pets make a mess on carpets? ;-)

10. If I can cut my own hair, I can certainly do the same for my pet.

Pets Now Even More Expensive -- Can Cost You Your Life!!!

Here's another pet-related story as a follow-up to today's earlier post. Turns out pets aren't only expensive, but some of them have strange side effects that can kill you:

A local family is suing PetSmart claiming that Joe De La Garza Sr., 63, died after catching parrot fever from a bird purchased at its Corpus Christi store.

Who knew there even was a parrot fever?

BTW, I know Todd will especially like this post. ;-)

Caring for Pets in a Bad Economy

Here's an article I ran into this morning that I found "interesting": Demand spikes at pet food banks, discount vets. Details:

Diana Bardsley wiped tears from her eyes as she recalled taking food off her plate to feed her beloved spaniel Hunter and two Siamese cats. Her greatest fear: that she could be forced to surrender the animals as she struggled to stretch her food stamps and Social Security income to meet the escalating cost of living.

Food stamps? Social Security? THREE pets? Is something not computing here?

But there's more...

Doreen Kazijian said she delayed buying her own medication for high blood pressure, using the money to buy medicine for her 16-year-old cat with thyroid problems and a 17-year-old cat suffering from liver failure.

Certainly this is her choice and she seems fine with it. For me, it's just a reminder that 1) you need plenty of surplus between your income and your expenses and 2) pets are expensive. Be sure you can afford them before you get one.

$1,200 Vet Bill Around the Corner

A week or so ago I was in the office early (I'm usually the first one in) when one of my co-workers called in. She said her four-year-old cat had been sick all weekend, she was taking him to the vet this morning, and that she'd be late for work. I told her I'd let the others know when they got in.

Around 10 am my cat-owning co-worker showed up. She had to call three vets before one had an open spot to see her cat (the vet business must be good!). She took the cat in and found out he had some sort of urinary tract blockage and needed immediate surgery. She loves the cat (as does her daughter and their dog), so she went ahead with it. A few hours later, all was fine and the cat was recovering post-operation. The only thing that wasn't fine -- my co-worker's wallet. The emergency surgery cost her $1,200. Yikes!

Fortunately, my co-worker was smart enough to plan for just such an emergency. She knows that pets can be expensive and saved in her emergency fund as a result. She'll be fine. Sure, she would rather not have paid $1,200 to save her cat, but doing so is not going to devastate her financially.

On the other hand, many people I know give very little, if any, thought to the cost of having a pet. They think they can pick up Spot or Fluffy at a shelter, feed him/her cheap food, and all is set. But animal owners know that there's a whole lot more to the financial side of owning a pet. There are regular, on-going costs of owning a pet. And then there are the BIG costs -- like my friend's unexpected cat operation -- that can pop up without a moment's notice.

So, my advice for those who are thinking about getting a pet: be sure you fully understand, recognize, and accept the financial responsibilities of owning a pet. And for those who already have a pet: be sure your emergency fund is high enough to cover a major medical emergency for your pet -- a $1,200 vet bill could be just around the corner.

Update: I originally wrote this article a week ago and set it to post today. Since then, my friend's cat came home and had the same problem occur again -- a urinary tract blockage. On Memorial Day, she had to take him in to the vet and have him put to sleep.

Add This to the Cost of a Pet

Now I've heard it all -- a funeral home for pets:

The funeral home will take care of all pets from dogs to iguanas, the report said.

The services range in prices from $150 to thousands of dollars.

Pets seem to be getting more expensive every day.

Hat tip: All Financial Matters.

10 Ways to Save on Pet Costs

MSNBC has a piece listing 10 ways to save on pet costs. Their suggestions:

1. One way to save money right out of the gate is to adopt a dog or cat from the pound. Pets from animal shelters cost much less money than purebred animals, and they often have been spayed or neutered and have received their shots.

2. Research breeds ahead of time. If you know you want a purebred animal for whatever reason, do some homework ahead of time so you can know whether to expect any specific health conditions or issues. It’s also a good idea to know what you’re getting into when it comes to grooming. It can cost $40 to $100 every six weeks or so to keep some high-maintenance breeds well-groomed.

3. Spay or neuter your pet for less. If your pet hasn’t been spayed or neutered yet and you plan to have this done, look into cost-effective programs run by your local Humane Society or branch of the American Society for the Prevention of Cruelty to Animals.

4. Comparison shop before choosing a vet.

5. Seek out discounts. Veterinarians sometimes offer discounts to senior citizens and people with three or more pets, and Humane Society and SPCA offices sometimes provide a wide variety of free or reduced-price services to low-income pet owners and seniors.

6. Don’t get stuck when it comes to shots. Contact your city’s or county’s animal control office and ask about free or low-cost rabies shots and other vaccines. You also can ask your vet about the feasibility of giving your pet booster shots every three years instead of once a year.

7. If your vet recommends an extremely expensive procedure, don’t simply say yes. Get a second opinion.

8. Strike mutually beneficial pet-sitting deals. Skip the potentially sky-high expense of boarding your pet or hiring a pet sitter by trading pet care with a friend or neighbor when you go out of town. If you must board your animal for more than two weeks or so, ask about long-term boarding discounts.

9. Focus on diet and exercise. Be sure your pet gets enough exercise on a regular basis and eats the right kind of food. Ask your vet for dietary recommendations, and don’t get carried away with too many treats or human-food handouts.

10. Should you buy pet insurance? More and more people are buying pet policies, which can cost $500 or more per year. If you’re convinced you need such coverage because of your pet’s breed or health history, try opting for a catastrophic policy only so you don’t pay too much.

Many of these tips are the same you'd use for yourself to keep health costs low -- eat well, exercise, shop around for doctors, get second opinions, etc. With pet health care becoming more and more expensive, we all need to employ the same sort of tactics we do with our own health to limit potential costs and make sure our pets live healthy, happy lives.

NYT: Dogs Cost $2k per Year, Cats $1.2k

Don't yell at me, yell at the New York Times. Here's what they had to say about the cost of owning a pet:

The American Pet Products Manufacturers Association asked 580 dog owners and 402 cat owners to record the amount they spent in the last 12 months on specific pet-related items.

The dog owners spent almost $2,000; cat owners about $1,200. If you want a real deal, small animals came in at just under $300.

“With dogs, so much depends on the size and age,” said Bob Vetere, president of the association. Annual costs “can vary from $400 to $500 a year to thousands.”

This seems a bit high to me. I've been researching this issue for quite some time and I have the number more around $1,000 per year for a dog. But the conclusion is still the same: pets are expensive.

Here are a few more comments from the piece that I'd like to highlight and comment on:

Spending can run even higher in the first year, since dogs need training.

Not to mention all the "stuff" you need at the start: shots, spaying/neutering, bed, leash, toys, pen/cage, etc.

My $1,000-a-year estimate includes major expenses in year 1 as well as at the end of a pet's life -- which is when the really big costs can hit. Some examples:

“If you start worrying about cataracts or tumors, you could get into thousands without breaking a sweat.”

Mr. Vetere said a relative of his had her mastiff’s two hips replaced at the cost of $10,000.

Far too many people underestimate the cost of raising a dog or cat, Mr. Vetere said, and “I think that’s what fills up shelters.”

"Far too many people underestimate the cost of raising a dog or cat." Yeah, like everyone reading this blog. Honestly, I've received a ba-zillion "my dog only costs $200 a year" comments and NONE saying "yeah, my pet costs run about $1,000 a year." (Though I do get a lot of stories of $4k vet bills and such.

And of course there are always on-going vet costs:

The national average for a veterinarian visit in 2006 was $135 for dogs and $112 for cats, according to the American Veterinary Medical Association.

Other big expenses:

Food is another big expenditure. Although my local Stop & Shop sells 13.2-ounce cans of generic dog food at the low price of five for $3, the fancy pet store a town away offers the same size organic cans for $1.80 each.

Another potential expenditure is room and board when you go away. The average price of boarding a dog, varying slightly by the size of the dog, is $25 a night, said Joseph Lyman, the chief executive of the American Boarding Kennels Association.

But you can go up from there. Even for pets, there are the equivalent of Comfort Inns and Ritzes, and you pay accordingly. The trend now is for “add-on services,” Mr. Lyman said. A friend of mine who left his dog in a kennel over Thanksgiving could have paid extra if Stanley wanted a little turkey for his evening meal.

More, um, lavish, is a “tuck-in service,” in which workers will read a bedtime story until Spot’s eyes are drooping.

Need I even comment on this?

But there's more:

In addition to overnight care, many places offer play care, where your pet can romp around with friends during the day.

Professional dog walkers have also become a mandatory expense, especially if you work a full-time job.

But one person's cost is another person's side business:

My neighbor Robin has a booming business, charging $20 a walk. But she doesn’t just trot them around the block. She loads four or five dogs into her van and lets them off-leash in the woods where they play for about an hour.

And in case the above aren't enough costs:

I could go on and discuss the cost of burials or setting up a living trust in case you predecease your pet.

Ok, a few final comments to wrap things up:

1. Pets are expensive. Deny it or admit it -- it doesn't change the truth.

2. That said, lots of things are expensive. If you want to spend your money on a pet, that's your choice. My only point is that you shouldn't be in denial of what it really costs.

3. I haven't had a pet for a really long time now (my wife and I had four cats -- long story -- before we had kids.) Since kids, we haven't had any pets as the kids tested positive for both dog and cat allergies. But it appears they've outgrown these, so we're considering a dog. If this happens, you can look forward to even MORE posts on the cost of pets. ;-)

Pets Can Cost You or Pets Can Make You a Fortune

This piece is actually on a doggie poop-scooping competition (yes, these exist), but there are a couple points I want to make from one quote halfway down the article. Here's the quote:

There are 74.8 million pet dogs in the U.S., according to the American Pet Products Manufacturers Association Inc. And a typical pooch produces 274 pounds of poo each year, according to the Environmental Protection Agency. Last year, pet services accounted for $3 billion out of the total $41.2 billion spent on U.S. pets -- with annual expenses for dogs topping $1,425 per year.

Here are my two comments:

1. Scooping dog poop is not something many people want to do -- which makes it a perfect business if you're looking at making some additional money.

2. "Annual expenses for dogs topping $1,425 per year" is a rather vague statement, but it does add additional credibility to my claim that the average pet costs about $1,000 per year (over the course of the pet's life -- more is spent in the early and late years, of course.)

How to Avoid a Hefty Vet Bill

My local paper recently ran a piece saying that the bad economy is forcing people to cut down on veterinarian costs. And in some cases, people are so bad off that they are turning in their pets. The details:

Besides having people seek out low-cost vet services, the sluggish state economy also is resulting in the Kent County Humane Society seeing a steady increase of pet owners relinquishing their animals, said Mark Petz, the Society's development and marketing director.

Owners have specific reasons, Petz said. They're letting go of their pets because they cannot care for them anymore, they need to move where animals are not allowed, they're being evicted for inability to pay their mortgage or rent and they're unemployed.

My take on this:

1. It's a sad situation all the way around -- for both the owner and the pet. I can't help but thinking that if people cut off the cable TV (which HAS to be watched on a flat screen, of course) and luxuries like these that many could afford to keep their pets.

2. I told you pets were expensive. Please, please, please consider the cost before getting a pet. Once you make the commitment to one, my thinking is that you're committed no matter what. That's why it's important to think through the true costs before you get a dog, cat or any other pet.

The piece also shares some proactive ways to avoid making a medical trip to the veterinarian:

• Keep your animal inside the house, fenced inside the yard or on a leash when it is outside to avoid the pet getting struck by a vehicle.

• With Easter approaching, remember lilies are toxic if cats eat them.

• Keep dogs away from chocolate, it can be fatal. Warning signs they've eaten it include vomiting and diarrhea.

• Don't leave medications where a pet could get into them; they could trigger a reaction.

• Keep a pet's nails trimmed, wipe out its ears to prevent infection and bathe and trim its fur regularly to prevent potential medical problems. Long, matted hair can lead to skin infections.

They also offer some ways to save on veterinary care:

• Ask your veterinarian if he or she will let you work out a payment plan.

• Contact your local shelter. Some shelters operate or know of local subsidized veterinary clinics or veterinary assistance programs. Go to Pets911.com and enter your ZIP code for a list.

• If you have a specific breed of dog, contact the National Club for that breed. In some cases, these clubs offer a veterinary financial assistance fund.

• Ask your veterinarian to submit an assistance request to the American Animal Hospital Association "Helping Pets Fund." In order to qualify, your animal hospital must be AAHA accredited. To find an AAHA accredited hospital in your area, visit Pets911.com.

I might as well let the cat out of the bag (pun intended) and tell you all that we are considering getting a pdog. If we do, it would be after we move to our new home, which would likely provide several acres of land for a potential Fido to romp and play. Of course this is far off for us now, but I'm already doing my homework: checking out different breeds, considering the cost and listening to a book on CD from the library by Cesar Millan.

Add $15,000 to the Cost of Owning a Pet

After readers bashed my "no comment" post on a dog's $4,200 pacemaker a few days ago, I know I'm treading on thin ice with this heading. But I'm a glutton for punishment, so here we go.

A Toronto man lost his dog (the dog was stolen from outside a bakery) and he offered $15,000 for the dog's return. Here's how he summed up his feelings for the dog:

“Life isn’t about money — it’s about the connection you make with other souls. Huckleberry was like my soulmate.”

This is probably the same sentiment many commenters on this blog have about their pets.

The good news -- the dog was returned. Not sure whether or not the $15k will be paid.

As you might imagine, I have a few money-related comments on this:

1. I've never thought about "ransom payments" as a cost of owning a pet, but I guess I'll need to add that now. ;-)

2. $15k? Seems a bit high to me. Wouldn't a dog-napper have responded for a simple $5k? Or $10k? Seems like the owner went too high too early.

3. Lesson learned: be careful who you use to walk your dog. In this case, it was the dog walker's fault for leaving the dog unattended outside a bakery.

And just so you don't think I only write negative pet-related posts, check out these:

• Would You Pay $45,000 to Live Seven More Years?

• Can You Get Healthy by Buying a Dog?

• What Makes People Happy, Part 3: Pets

• Pets SAVE You a Boatload of Money -- In Many Different Ways

Over $4k for a Dog's Pacemaker

$4,200 for a pacemaker for a 10-year-old dog.

No additional comment. I'll leave it at that.

How To Save Money On Your Vet Bills

Parade magazine has a list of how to save money on your vet bills. But before we get to that, consider the following:

Americans paid more than $9 billion for veterinary care in 2006—$670 for the average dog and $540 per cat.

This is for the "oh, my pet only costs $100 a year" people. Eventually, pets will need veterinary care and when they do, it's very expensive.

Now for the money saving list. They break the ideas down into groups -- prevention, attention to your pet's condition, and working with your vet -- but I'm going to bundle all the suggestions into one group:

• Help your pet practice good hygiene.
• Keep pets at an ideal weight and make sure they get plenty of exercise.
• Keep your pet current on vaccines and parasite preventives.
• Spay or neuter your pet early.
• Keep cats indoors.
• Pet-proof your home and yard.
• Be observant.
• Do a sniff test.
• Commit to regular checkups.
• Ask about ways to save.
• Try a veterinary school.
• Don’t be afraid to ask questions.

Some good tips here. In particular, I want to comment on:

• Keeping pets at an ideal weight. It seems like most pets I know are fat. More are overweight than are normal weight IMO.

• I like the veterinary school suggestion. Could be a great way to save some big money.

• Here's a quote I couldn't get past on the good hygiene suggestion above: "Brush your pet’s teeth at least three times a week to avoid tooth decay and gum disease." Does anyone really do this? Yuck! BTW, good luck doing that with a cat!!!

Money Can Buy You Love

Contrary to what the Beatles may think, money can buy you love. At least that's what Laura Rowley thinks. The details:

The Internet is rife with absurd calculations on the expense of owning a dog over its lifetime -- I found estimates ranging from $5,000 to $49,000. But it's kind of like looking at those government figures on the cost of raising a child. Once you hold the real deal in your arms, you never think about the experience in those terms.

Sammy will make a dent in our budget for years to come, but I don't care. In this case, I found that money can buy you love -- at least puppy love.

So you can buy love after all, huh? Not only that, but a pet can help you live longer! Who wouldn't pay $45,000 to live seven years longer?

I have to admit that, like Rowley, our kids are wearing us down too. They want a dog and a cat and we've promised them that if and when we move to our new house (looking for a good deal during the real estate downturn) we would consider getting at least a dog (an outside dog as we like mid- to large-sized dogs and the new place would have room for him/her to run.) I've pretty much decided we WILL get one, though my wife is still holding out hope the rest of us will forget the plan. Somehow, I don't think the kids will. ;-)

Yeah, it will mean a hit to the budget, but for some extra love and seven years longer to live, it's worth it, right? ;-)

Would You Pay $45,000 to Live Seven More Years?

Stick with me on this one. It's a bit of a round-about post, but I think you'll see where I'm coming from by the end.

I've posted a ton on the cost of pets and have come to the conclusion that a pet costs roughly $1,000 a year. Bigger dogs may cost more, a hamster will cost less, but I use $1,000 as a nice, round number to work with. And I know that none of you spends this much each year, but someone is spending a ton because those are average numbers. But we're not here to talk about that issue today anyway. For now, let's just all agree that a pet costs roughly $1,000 per year.

So, if you had a pet from the time you were out of your parents house (we'll say age 22) until age 67, this would give you a pet for 45 years (I'm assuming three pets that live 15 years each, but you can plug in your own assumptions here.) In this case, those pets would have cost you $45,000.

I was watching a commercial for AIG Insurance the other day when they flashed a startling fact on the screen -- that owning a pet can extend your life by seven years. Of course, I was skeptical of this claim, but knowing what I do about advertising and big companies, I knew they weren't making it up -- they had to have some sort of reasonable back-up for this claim. So I emailed them and asked where they came up with it. They emailed me this link on Ten Small Things That Can Add Big Years to Your Life (which I'll probably cover in more detail on a later post) which includes the following:

Several studies have shown that owning a pet lowers a person's blood pressure, increases self-esteem in children, decreases the mortality rates of heart attack victims, decreases cholesterol, decreases depression, relieves stress, and increases family happiness. Pets also make people, particularly younger people, more likely to participate in extracurricular activities. On a whole, research predicts that those who own pets will outlive those who don't by an average of seven years.

Here's that last sentence again:

On a whole, research predicts that those who own pets will outlive those who don't by an average of seven years.

Ok, so let's put it all together. Owning a pet during your adult years will cost you $45,000. Owning a pet during your adult years will add seven years to your life. Therefore, for a $45,000 investment, you can get a pet and expect to add seven years to your life.

Sounds like a good deal to me. What do you think?

Can You Get Healthy by Buying a Dog?

Ok, I've highlighted the excesses of some people when it comes to their pets, so now I'll give equal time to a positive pet-related story.

I recently found this post that highlights a couple studies saying dog ownership contributes to a person's good health. The details:

Dog ownership appears to have "a positive influence on health," according to a research review in the British Journal of Health Psychology. The author, Dr. Deborah Wells, found that while pet owners were healthier in general, dog owners in particular got more of a boost than other pet owners.

She discovered that dog owners had lower blood pressure and cholesterol, fewer minor physical ailments, and were less likely to have serious medical problems.

Another study of dog ownership and physical activity out of the University of Western Australia found that dog owners were 68% more likely to get the recommended amount of physical activity per week than non-owners. People with dogs racked up about 55 minutes more exercise a week.

So look at it this way:

1. Being healthy is more important than money. Why? Because if you're not taking care of yourself you're in danger of losing your greatest financial asset. And if you really don't take care of yourself, you end up dead -- that's even worse. (For ideas on how to become healthy, check out Your Greatest Asset: You and The Most Cost Effective Ways to Stay in Shape.)

2. Pets can cost a bundle but they can also save you money. And as many people have pointed out, they offer love and affection that you can't put a price tag on (or at least most people can't.)

3. So, maybe having a pet is a good financial deal after all, huh?

I guess in the end I agree with the author of the blog post linked above when he says:

Bottom line: A relationship with a dog can be more than just "healthy" -- it can be deep, life-affirming, even profound. That is, if you want a dog.

If you just want a piece of exercise equipment, then you're probably better off buying a treadmill!

The Pet Economy

When I saw that Business Week had done a big piece on the pet economy, I knew I had to share some of it with all of you. After all, I have quite a list of posts devoted to pets and I KNOW how much you love to hear me talk about how expensive pets are. ;-)

Anyway, here are the highlights of the piece and my comments:

Americans now spend $41 billion a year on their pets—more than the gross domestic product of all but 64 countries in the world. That's double the amount shelled out on pets a decade ago, with annual spending expected to hit $52 billion in the next two years, according to Packaged Facts, a consumer research company based in Rockville, Md. That puts the yearly cost of buying, feeding, and caring for pets in excess of what Americans spend on the movies ($10.8 billion), playing video games ($11.6 billion), and listening to recorded music ($10.6 billion) combined.

How do we rack up this much? By going to extremes:

"People are no longer satisfied to reward their pet in pet terms," argues Bob Vetere, president of the American Pet Products Manufacturers Assn. (APPMA). "They want to reward their pet in human terms." That means hotels instead of kennels, braces to fix crooked teeth, and frilly canine ball gowns. Pet owners are becoming increasingly demanding consumers who won't put up with substandard products, unstimulating environments, or shoddy service for their animals.

And for the over-the-top pet spending idea of the day:

If there's still any doubt whether the pampering of pets is getting out of hand, the debate should be settled once and for all by Neuticles, a patented testicular implant that sells for up to $919 a pair. The idea, says inventor Gregg A. Miller, is to "let people restore their pets to anatomical preciseness" after neutering, thereby allowing them to retain their natural look and self-esteem. "People thought I was crazy when I started 13 years ago," says the Oak Grove (Mo.) entrepreneur. But he has since sold more than 240,000 pairs (a few of which went on prairie dogs, water buffalo, and monkeys). "Neutering is creepy. But with Neuticles, it's like nothing has changed." Nothing, except there's a fake body part where a real one used to be.

Can it get and worse? I'm sure it will.

What happened to the days when a dog was simply a dog?

This piece contains one unbelievable quote/stat/finding after another. Since it's seven pages in length, I've selected several of their quotes that highlight the article in case you can't read it all:

• APPMA reports that 42% of dogs now sleep in the same bed as their owners, up from 34% in 1998.

• Half of all dog owners say they consider their pet's comfort when buying a car, and almost a third buy gifts for their dogs' birthdays.

• There are now $430 indoor potties, $30-an-ounce perfume, and $225 trench coats aimed solely at four-footed consumers and their wallet-toting companions.

• Even those who shun animal couture are increasingly willing to spend thousands on drugs for depression or anxiety in pets, as well as psychotherapy, high-tech cancer surgery, cosmetic procedures, and end-of-life care. About 77% of dogs and 52% of cats have been medicated in the past year, according to APPMA, an increase of about 20 percentage points from 1996.

• About 63% of U.S. households, or 71 million homes, now own at least one pet, up from 64 million just five years ago.

• After consumer electronics, pet care is the fastest-growing category in retail, expanding about 6% a year.

• "He's my best friend and my best-accessorized friend," says Gemoets, whose splurges for Bradford include a $1,200 Hermès collar and leash, as well as $500 Chanel pearls for parties.

• Most of the pet business world's attention is directed at the country's 88 million cats and 75 million dogs. The reason is simple. As Philip L. Francis, CEO of PetSmart Inc., the world's largest pet specialty retailer, explains: "You can't train a fish or groom a snake."

• Along with making his 928 retail locations homier and hosting pet parties, Francis is rolling out blue-shingled "pet hotels" (kennels) in his stores. They feature private suites with raised platform beds and TVs airing shows from Animal Planet for $31 a night, as well as "bone booths," where pets can take calls from their owners, and porous pebble floors where dogs can pee. Cats get live fish tanks to watch in their rooms and separate air filtration systems so their scents don't drive the dogs crazy.

• With annual growth nearing 50%, "the pooper scooper industry is now experiencing a lot of consolidation," says Jacob D'Aniello of DoodyCalls, which has 20 locations nationwide.

• Americans now spend $9.8 billion a year on vet services. That doesn't include the over-the-counter drugs and other supplies, which add $9.9 billion in costs.

• "Pocket pets and animals who wouldn't even have been taken to vets now go for regular visits." Suzanne Kramer of Chicago spent close to $380 on vet visits and drugs to treat a tumor in her hamster, Biffy, before he died last year.

• Not only is state-of-the-art technology such as magnetic resonance imaging, with costs that range around $1,500 a scan, now available in small-town labs, but consumers' expectations of medical care have been transformed. They want the same best-in-class care for their pets that they want for themselves.

• Jamie Ward invested in a $25.77-a-month plan with Veterinary Pet Insurance for her American Staffordshire terrier, Loki, only to discover that it didn't cover any of the $2,000 in expenses for a kneecap injury.

• The ever-expanding roster of drugs and treatment can run into tens of thousands of dollars in expenses, creating a dilemma for owners. Steve Zane of Hoboken, N.J., choked slightly when a veterinarian presented him and his wife, Lily, an estimate of $3,700 to help cure liver failure in their cat, Koogle, over Christmas. "We looked at each other and said: Well, he's family,'" recalls Zane, a graphic designer who's still paying off the final bill for the recovered cat. "If it had been $15,000, I think we would almost have had to say no."

• Americans are expected to spend 52% more on medicines to treat their pets this year than they spent five years ago.

• As many as 40% of dogs are estimated to be overweight or obese, with similarly high rates among cats, thanks to the indulgent habits of their owners. Being plied with carob bonbons all day while getting rolled around in an all-terrain stroller (retail price: about $210) is not an ideal lifestyle for any animal.

• And for some pet lovers, no medical procedure is too extreme. Plastic surgeons offer rhinoplasty, eye lifts, and other cosmetic procedures to help tone down certain doggy features, from droopy eyes to puggish noses. Root canals, braces, and even crowns for chipped teeth are also becoming more popular.

The article also details where all the spending on pets goes. Here's the breakdown:

• Food: $16.1 billion
• Supplies/OTC Medicine: $9.9 billion
• Vet Care: $9.8 billion
• Grooming and Boarding: $2.9 billion
• Live Animal Purchases: $2.1 billion

You can see a cute chart with these numbers featured here.

Business Week also has an interesting piece on when to let go of a sick pet.

I'm not saying anything -- the facts speak for themselves here. But I will leave you with this quote:

"I call him my 401(k) with paws," he says, "because that's where all my money goes."

What Makes People Happy, Part 3: Pets

Here's a happiness shopping list from CNN Money -- a set of items that people say make their lives happier (something money can only do to a point.) I'll be sharing all five of these over the next few days and today we're talking about pets. The details from Money:

Despite all the sofas and shoes they destroy, pets have been shown to make you happier. What's more, caring for furry friends can help ease stress and lower your blood pressure, and a daily trip around the block with Fido is a chance to meet non-furry friends.

Ok, I'm giving pets their due with this post. I've detailed at length the cost of pets to the point where it's the most hated topic here at Free Money Finance and now it's time to see the other side of the story.

So let's say Fido costs $15,000 during his lifetime. If he helps to lower your stress and blood pressure, he is probably saving you money on medicine, doctor's visits and maybe medical insurance. In fact, he may even be saving your life. In addition, if you have to walk him, that may be your only exercise -- something else that will make you healthier and extend your life. Add to these that you're just "happier" by having a pet and maybe pets are worth the investment after all.

Now, should I be looking at a dog or a cat? ;-)

Why Pet Insurance is Usually a Dog

Cute title, huh? I took it from Consumer Reports piece of the same title. In that article, they detail why they think pet insurance often isn't a great deal. The summary:

Checkup costs alone don’t justify insurance. Instead, factor them into your budget. Annual surgical vet visits cost, on average, $453 per dog and $363 per cat, says the American Pet Products Manufacturers Association. If your pet is older and more likely to need extra treatment, and you can find an accident-and-illness policy that costs less than those amounts, consider it. If not, put the amount you’d pay in premiums into an interest-bearing fund.

In other words, save the money yourself in advance -- and self-insure against potentially high pet medical costs. Sounds like a good plan to me, but how many people are disciplined enough to save in advance? Not many I'd guess.

For more on this topic, see these links:

• Is Pet Insurance Worth the Cost?

• Should You Buy Pet Insurance?

• How to Choose the Right Pet Health Insurance

Is Pet Insurance Worth the Cost?

Every day on my way to work I pass a pet clinic. For the past month or so, the sign outside has read "Pet Insurance Saves Lives." Obviously, they're selling pet insurance inside, but seeing the sign brought up the issue of pet insurance again and I wondered if it was a good deal or not. Then, reading Parade magazine a week or so ago, I stumbled upon an article titled "Should I Get Pet Insurance?" Here are their thoughts when it comes to the economics of pet insurance:

You easily can spend more than $7,000 on premiums over your pet’s lifetime. But don’t pick a plan based on price alone—the cheapest may not be the best. Usually, lower monthly premiums mean higher deductibles and/or co-payments. Estimate how much you spend a year on veterinary care and how much you ultimately can afford. Some vets feel that pet insurance is best for major expenses or emergencies but not for routine costs, which you could pay out of pocket.

Hmmmmm. $7,000? If a pet lives 14 years, that's $500 per year alone on insurance. This seems a bit high to me. Is this the going rate?

In the end, I guess it comes down to your philosophy on pet care and what you plan to do if/when you pet gets sick. Some people choose not to make extraordinary efforts to save a pet while others will do whatever it takes to save what they consider a member of the family. Pet insurance probably doesn't work for the former group but is likely a good move for the latter group (as long as you get the correct policy -- see the Parade article for details). Does this sound like a good rule of thumb to you?

Pet Financial Horror Story

Here's a pet financial horror story a friend told me a month or so ago:

"A friend of mine bought a boxer at a local pet shop. The dog was a bit sick and my friend thought he just had kennel cough. So when he took him to the vet, he was shocked to find the dog had pneumonia and an infection. $4,000 later, the dog's ok. He went back to the shop to try and get part of this paid for, but they refused."

A few thoughts here:

1. You need to be careful where you get your pet. Obviously, you want to buy from a company/person who will stand behind the purchase should anything go wrong.

2. Take the dog to a vet as soon as you get him. The vet can then verify if the pet had any sickness prior to you owning it and can put it in writing. This can be very useful in the case that you need to take legal action.

3. If the shop won't back up the sale, consider getting a lawyer. Of course you'll need to do a cost/benefit analysis, but for $4k, it's probably worth it.

4. As I always say, you need to consider the costs associated with a pet before getting one. In this case, the problem could have just as easily happened a year after the friend had the pet -- then he would be totally responsible for it (like he may be now.) That's a big chunk of change.

Pets SAVE You a Boatload of Money -- In Many Different Ways

Lots of comments left on my post titled How Much Money Can Pets SAVE You? and I thought I'd share them with everyone.

First, pets save your kids from allergies (not to mention saving you the cost of dealing with them):

Kids that grow up with pets typically have better immune systems than those who do not. There is a potential for allergy medication and kleenex savings here. Not to mention the improved quality of life for your kids.

Next, they save you on security expenses:

My little Lhasa apso is the best watch dog there is. I have a lot of peace of mind and no need for an alarm system even though I live in an area that is not the safest.

They also keep you house-bound so you don't spend money on going out. And even while you're at home, they save you money too:

My husband and I have two kittens, and it encourages us to go home and spend time with the cats instead of going out (and spending more money).

Other friends with cats say they have canceled or downgraded their at-home entertainment options (internet, cable TV, renting movies), because they'd rather play with their cats!

Yep, they sure do keep you at home -- and help to keep you physically fit, not to mention make you happier:

Since we got our dog, we notice that we take more pleasure in staying home, and so we often choose to stay in rather than go out and do something that costs money. We also feel happier in general, which I think probably reduces our urge to splurge to boost our moods. We definitely are motivated to walk more, and we take more pleasure in even short walks - this also boosts our mood, and increases our overall fitness.

Of all the things we've spent money on in the last year and a half, I think we least regret buying our schnauzer. He helps keep our lives centered on love, caring, home and family - values that are very important to us. Comparing the joy we take in caring for him to the ephemeral pleasures of expensive toys and entertainment helps remind us that consumption is fun, but doesn't last and only makes you crave more. Caring is what gives your life meaning and sustainable happiness.

More on cutting out entertainment expenses:

I've turned down several invitations for a night out on the town since I got my puppy in August last year, because she was too little to leave at home by herself for several hours. Savings? At least $300 on dining out and alcohol by now. Now she's 8 months old so we leave her at home for nights out, but sometimes after going out, we get asked to head out to a nightclub or casino after a party winds down by friends who haven't quite had their fill of entertainment, and we always turn that down to go home to see the dog. It still saves us money on entertainment costs, and we still maintain an active social life.

Sometimes she saves us money on vacation costs (although this is not necessarily always a positive) because we sometimes have to turn down weekends out of town because there's nobody to take care of the dog.

Oh no, I feel the hassle factor kicking in. ;-)

They help you save on TV service, find you new friends and get you to explore:

When I moved into my apartment, I knew I would be getting my Doberman puppy a couple months later. Knowing that he would take up much of my time I decided not to get TV service. That was one year ago and I still have no TV service. Don't regret it at all.

Along with forcing me to get out to walk him regularly, it also allows for making many new friends. I am constantly finding new places to go and some are places I probably would've never visited if it wasn't for the dog.

And they can make you money. Good money:

We breed our family pets, and get around $500 per puppy.

We adore having puppies underfoot and make a nice little nest egg out of it.

I wouldn't even suggest we make a profit given the cost of having dogs but we certainly break even on the whole 'pets' thing, and come out way ahead in any satisfaction measurement.

(Expecting our 4th litter this year - we're excited already :))

Now I'll add one more --  they could save your life. ;-)

Pets Continue to Get More Expensive

Yep, here's another post on how expensive pets are. It's not that I'm looking for information on the subject -- I've already documented what a pet can cost. But somehow I keep running into more and more outrageous articles on how pet spending is skyrocketing.

This one was in my local paper recently and focuses on how Americans are increasingly medicating their pets. I'll pick out some of the more compelling parts of the piece and comment on them along the way. Here we go:

Brownie (a dog) takes more drugs than his human companions put together. He has been medicated in recent months for diabetes, infections, high blood pressure, and his finicky gut that rebels at red meat. Since 2005, he has taken drugs for everything from anemia to a spider bite.

She estimates spending $5,000 over the last two years on medicine for her baby, a mixed beagle-cocker spaniel. He has lost a couple of steps on the squirrels outside their little home near Goldsboro. His hearing is failing. Still, without some of the drugs, he'd probably be gone.

$5,000 over two years? Yikes! But just like with humans, pets can now live longer due to the advances in medical science. So you can keep your pet alive an extra few years, but it may cost a pretty penny.

This is the part of the average cost of a pet that very few people account for. They comment here that "my dog doesn't cost anything close to $1,000 a year." Maybe not yet, but it doesn't take many years (maybe only one) of medicines/treatments to make up for a few years where a person "only" spent $500 a year.

The article continues and talks about how people are giving their pets medication more frequently:

Americans have begun to medicate their dogs, cats and sometimes other pets much as they medicate themselves.

They routinely treat their pets for arthritis, cancer, heart disease, diabetes, allergies, dementia, and soon maybe even obesity. They pick from an expanding menu of mostly human pharmaceuticals like steroids for inflammation, antibiotics for infection, anti-clotting agents for heart ailments, Prozac or Valium for anxiety, even the impotence drug Viagra for a lung condition in dogs.

When I saw Viagra on the list I thought "you've got to be kidding me!" Then I saw it was for a lung condition. If it wasn't for something like treating a lung problem, I was going to say some people are REALLY going overboard. ;-)

Going on:

Within the last five years, pets have finally overtaken farm animals in the pharmaceutical marketplace, claiming 54 percent of spending for animal drugs, according to the trade group Animal Health Institute.

Keeping more than 130 million dogs and cats alone, Americans bought $2.9 billion worth of pet drugs in 2005. Though equal to only 1 percent of human drug sales, the market has grown by roughly half since the year 2000.

One of them was Slentrol, which became the first government-approved slenderizer for obese dogs in January. It will cost up to $2 a day, though buyers could presumably put their animals on a diet and save money on dog food in the bargain.

Ok a few thoughts here:

1. We now spend more on drugs for pets than on animals we eat. Hmmmm.

2. $2.9 billion? Ouch!

3. What ever happened to just feeding your pet less? Isn't that still a valid weight-control measure?

But the list of costs goes on:

For example, a single three-month course of pet chemotherapy might cost $3,000, though chemo in an animal is meant more to ease symptoms than prolong life. It's a reasonable option only for some pets. Researchers have also begun to test new, expensive, targeted cancer drugs like Gleevec on animals.

$3,000 for chemo, a few thousand for cancer drugs, and on and on. Where's it going to end?

Then again, some people take a different route:

Of course, many people still medicate pets sparingly. Laura James of Plymouth, Mass., said she and her husband had a tumor removed from their 11-year-old golden retriever. When it returned, though, they decided to let "nature takes its course," and had to put their pet to sleep recently.

They never considered pet chemo, rejecting it as too expensive. "If it were our children, there'd be no question, but it's a pet," James said. Then she added, "My sister thinks I'm cruel."

I'm sure some will comment below that their pet is just like a child. Really? Do these people have children? I think not. Seriously, even if someone did, would anyone really compare the life of a child to the life of a pet? Sorry, it's a bit off topic, but the "pet is like a child" argument, which I hear very often, just rubs me the wrong way.

And now, for some perspective:

Some question whether society is keeping priorities straight. Dianne Dunning, an ethicist at N.C. State's vet school, anguishes over the millions of animals, lost and unwanted, that are euthanized each year, while millions of dollars are spent on pet medicines.

David Rothman, a Columbia University expert in medicine's role in society, points to the millions of people who are desperately short on care: "If you can't get malaria drugs in some Third World countries, what are we doing with chemotherapy for cats?"

You can apply this thinking to anything (such as "do you really need that big of a car when people in the world are starving?"). But still, it's an interesting thought.

And finally, a few more thoughts on the cost of pets:

Yet many American pet owners, like some who come to N.C. State's veterinary school, "spend $500 a month on their chronic medications - and they don't flinch," says school pharmacist Gigi Davidson.

Health insurance for pets has finally begun to catch on in the past five years. It multiplied from near invisibility in 2002 to as much as 3 percent in 2005, a marketing study found. Now insured are dogs, cats, birds, pigs, mice, snakes and other exotics.

Veterinary Pet Insurance of Brea, Calif., claims close to 80 percent of the U.S. market with its 400,000 policies, typically costing $30 a month in premiums. Company spokesman Brian Iannessa says the total market is expected to climb to $500 million by 2010.

Of course you can spend your money however you like. That's one thing that having money is about -- so you can spend it on things you enjoy. I'm simply trying to bring to light the fact that pets cost a bundle of money and before you go off and get one, be sure you realize the breadth of the financial decision you're making.

A Dog That Costs a Quarter of a Million Dollars and More Wild Pet Spending

Just when I think I've heard every idea in the world on how people spend money on their pets, I run into a piece like this that talks about how some people go to extremes to pamper their pets. The article tells the story of Pepper, a 5-year-old wire-haired dachshund, from New York. Here are a few tidbits from Pepper's life:

Pepper's day care runs about $25 a day. When the Teichs travel, an orthopedic bed and board at Ritzy runs between $60 and $100 a night, depending on whether Pepper has private or shared accommodations and if he partakes of room service meals and grooming.

$25 a day, five days a week, 50 weeks a year equals $6,250. Toss in $80 a night for 14 nights of vacation and you're up to $7,370. If the dog lives for 15 years, these costs alone (in addition to all the other costs associated with the animal) add up to over $110k. If that money had been invested at 10% for 15 years, it would have been worth almost $236,000. Yikes!!!!!!

If it seems like pet spending is going up, up, up, you're right. Here's why:

Dogs fill in for children in lots of American families these days. Many boomers -- the generation with all the money in the U.S. -- are just about done with parenting. Their nests are feeling a little empty.

"People are spending more on their pets because of marketing, that's No. 1," says consumer-trend analyst Cheryl Russell of New Strategist Publications. "Also, people are more affluent. And the third reason is that the boomers are so used to pampering their children . . . so that when their children are gone they turn all that attention to their pets."

The latest spending figures show that between 2002 and 2004 household spending on pets increased 18% after inflation while toy sales dropped 25%, spending on day-care centers fell 15%, and spending on children's clothes was down 15%.

And in case you'd like even more wild and crazy ways to spend on pets, here's a selection of some of the ideas they share:

• A jogging stroller for your little human can set you back $200 or even more. Ditto for Fluffy's stroller.

• An ergonomically correct dog dish runs you $150.

• Fifty dollars -- yikes! -- will buy you a designer baby sweater. But, hold on: Fluffy needs a sweater, too -- and it can set you back $50 to $125. Add in the dog sunglasses, sunscreen, low-carb pet food, mink dog collars and leather bomber jackets and Fluff's run up quite a bill.

• You can replace your neutered dog's missing testicles with Neuticles, testicular implants for pets. (Cost: $94 to $129 a pair, plus veterinarian's charges.)

• Dog weddings start at $250 at The Yankee Dog Retreat.

Unbelievable. I don't know what to say. Other than: get a fish. No one spends anything extra on those. Unless you count the 450 gallon tank that's an under-sea replica of the Titanic sinking. ;-)

How Much Money Can Pets SAVE You?

I've talked a lot about the cost of pets, but this comment to my post titled You Choose -- Pets or College for the Kids turned the tables on me. The thought:

Don't forget to deduct from that number what the pet can save you. For instance, I have a German Shepherd and I have never felt any need for a security system for my house. That alone saves me the price of his monthly food. Plus there are the health benefits from having a pet -- decreased stress level and increased sense of well being, and an incentive to go for walks, etc. I would be interested to see how much someone's average yearly medical expenses can be decreased by having a pet.

Ok, so we have:

1. Savings on a security system. That can certainly be quantified -- though many of the dogs I know wouldn't be a good replacement for a security system.

2. Decreased stress and sense of well being. Good stuff -- anyone got an idea how to put a number to it?

3. Incentive to go for walks. Yes, getting in shape can certainly save you a ton of money. I'm just not wild about walking a dog at 6 am in 10 degree weather. ;-)

Anything else? I'm sure the pet lovers out there can come up with some other ways pets can save you money. Also, if anyone has links to studies showing how pets reduce stress, make you healthier, etc. those would be great to see as well. Who knows, we might find enough savings to say "you're losing money if you don't have a pet." ;-)

Getting a Pet Listed as a "Stupid Money Move" by Money Central

In Your Stupidest Money Moves, Money Central details letters from readers who made some dumb money mistakes. One of the topics, as you may have guessed from the title of this post, centered on pets. Here are some comments they received from readers regarding the cost of pets:

"Dagro," at 18, spent $1,100 on a dachshund puppy, "not realizing I had no time for him," while attending school. The expensive pup was fortunately taken in by dagro's vet.

"Alaskagurl," by contrast, got a puppy for free -- initially. She left the little darling in her new Toyota 4Runner "while I got a collar, leash, food etc. Came out -- she had chewed through the seatbelts in the back. Completely! That made her a $960 dollar puppy . . . and still counting. Good thing she is such a great dog -- although I still don't take her on many car rides!"

"HW3" is also still counting the cost of the "free" stray kitten that her husband found.

"The kitten needed shots, de-worming, cold treatment, fixing: $600. Soon after fixing, the dumb animal swallows a coin. Surgery: $400. Reasoning: we already paid $600, might as well add $400 instead of putting her to sleep. . . . Add to this, leather furniture ruined by the pre-existing cat."

You can't, of course, put a price on the value of animal companionship, any more than you can predict how much upholstery it will destroy. But an estimate of how much a new pet is likely to cost you can help you decide whether animal husbandry is right for you.

They then detail the average first-year costs of the most popular pets:

The American Society for the Prevention of Cruelty to Animals (ASPCA) offers the following averages, which include food, medical care and various accessories:

• Small bird $195
• Fish $235
• Guinea pig $645
• Cat $715
• Small dog $810
• Rabbit $911
• Medium dog $1,190
• Large dog $1,580

A few thoughts here:

1. I've posted a bunch about the cost of pets. Click the link for details.

2. The basic rule is "the smaller the pet, the cheaper it is." Rabbits seem to be an exception to this rule. Who knew they were so expensive?

3. You can't really get a "cuddly" pet for less than $700. I'm sorry, but birds, fish, and guinea pigs simply don't cut it as cuddly. And only one of them is cute. So if you want to go for "cute and cuddly," be prepared to shell out some bucks.

4. In case you didn't know it, "large dog" is Latin for "college tuition." Do the math. $1,580 at 10% for 18 years is over $72,000.

Save Money on Prescription Drugs by Getting Free Samples

Here's a way to save money on your medical expenses -- by getting free drug samples from your doctor. The details from Money magazine:

Drug companies give away tons of samples to physicians, so your doctor may be able to supply you with several weeks' worth of medication at no charge.

My wife does this all the time -- especially for kids' items to fight a cold, etc. Works like a dream.

By the way, the same tip works with your vet too. You can save a ton on Fido's drug costs by asking for free samples there too.

8 Ways to Keep Overall Pet Costs Low

Here are eight ways to save on pet costs from Money Central (see the end of the article):

• Use low-cost clinics for shots.
• Get second opinions.
• Ask for samples.
• Shop around for meds.
• Don't cheap out on pet food.
• Keep their weight down.
• Keep your pet indoors or on a leash.
• Consider a cat -- or a mutt.

My thoughts on these:

1. We usually got our pets from the animal shelter and often they had shots at a reduced price. Not sure they do this or not anymore, but back in the day, it saved us a decent amount.

2. Just like you would for yourself, getting second opinions is a great idea for your pet -- especially when your vet is recommending that new $2,500 treatment.

3. Vets get a ga-zillion samples of food, drugs, treats, etc. from companies wanting them to push their products and my experience is that most vets usually share them freely just for the asking.

4. Not only shop around for your meds, but also ask for free samples (as noted above.)

5. Cheap pet food? My mom used to COOK for our pets. Later, when I was on my own and had pets, I always fed them the "good stuff" figuring it was cheaper that a vet bill from eating bad food. Besides, the makers of the better foods coupon heavily (or at least used to), so I never paid full retail.

6. Our pets were always big, but only a couple were fat. Maybe my chasing them (the cats) around with a toy car kept them in shape! ;-)

7. Our cats were always indoor only animals. We lived in a rural area, and the dogs would run free. Yes, we had to train them not to go near the road, but they were quick learners.

8. Personally, I like both cats and dogs, but let's face it -- cats are cheaper. And both kinds of animals are very cheap (or free) at your local animal shelter.

Should You Buy Pet Insurance?

Here's a piece from Money Central that discusses the issue of pet insurance and whether or not pet owners need it. The summary of their thoughts:

I still believe most people are better off forgoing the policies and instead putting the money they would spend on premiums into a savings account. Pet insurance can cost $2,000 to $6,000 over the life of an average pet, and the chances are slim you'd ever have to shell out that much for treatments.

But if you're the type of person who would do anything to save your pet, including spend thousands of dollars on medical treatments, pet insurance might be a preferable alternative to going into debt.

Having written a ton on the cost of pets, I can tell you for sure that there are a lot of people out there that would spend whatever necessary to save their pets. So why does something that can cost $2k to $6k still make sense even for these people. Here's why:

What's changed in recent years is the state of veterinary science, as well as the economics of running a veterinary practice. Vets today can offer treatments that were unheard of just a few years ago -- and at prices that could make you howl. Consider:

• Treatments once reserved for humans, from radiation therapy to kidney transplants, are currently available for pets. That means once-fatal conditions are now treatable at costs ranging from $1,000 to $5,000 or more.

• Vets have access to increasingly sophisticated and costly diagnostic tools such as MRIs. Such screenings not only boost the cost of exams but often detect problems that once would have gone unnoticed, and untreated.

• These expensive tools and procedures have helped create health-care inflation in the pet doctor world.

Oh yeah. Now the same issues that have driven up human medical care costs are impacting the costs of animal health care.

The piece goes on to detail the traps to watch out for when buying pet insurance as well as give some advice on when to buy and when not to. For further information on the subject, you can also see my post titled How to Choose the Right Pet Health Insurance.

I'm not sure I could justify spending $2,000 to save a pet, but for those of you who would spend this (and many who would spend a lot more!), pet insurance is certainly something you should investigate.