George Kamel - Don't Let Pets Neuter Your Bank Account

Episode Date: April 29, 2024

💵 Sign up for EveryDollar today. Create a free budget!  Pet ownership is the best, but it can also be “ruff” on your wallet (you’re welcome). Today, join me at the Nashville Humane Association to learn how to be prepared for the extra expenses that come with a fluffy BFF.  Next Steps  ▶️ Watch: Awkward Money Conversations With Strangers 📗 Order George Kamel’s new book, Breaking Free From Broke.    Offers From Today's Sponsors  This episode is sponsored by DeleteMe. 🔒 Remove your personal information from the web at JoinDeleteMe.com/George and use code GEORGE for 20% off. 🙌    🎙️ The Ramsey Show    🍸 Smart Money Happy Hour  💡 The Rachel Cruze Show  💸 The Ramsey Show Highlights  🧠 The Dr. John Delony Show  💼 The Ken Coleman Show  📈 The EntreLeadership Podcast     Ramsey Solutions Privacy Policy  Learn more about your ad choices. Visit megaphone.fm/adchoices

Listen, I love owning pets as much as the next guy, arguably a whole lot more. But I'm fully aware that if you're not careful, your pet can end up owning you. And I'm not just talking literally, even though there are reportedly cats out there wielding mind-control tactics. You see, on average, people spend $1,500 a year on their pet. Even triple that for those who use a doggie daycare service. And while those furry balls of love and drool are worth every penny, you've got to know how to handle these pet-related expenses, so the blessing of pet ownership doesn't neuter your finance.

Or spay, we're all about equality here. So today I'm going to the Nashville Humane Association for the Every Dollar Pet Adoption Giveaway. That's right, the Every Dollar budgeting app is sponsoring this local event here in Nashville and covering all adoption fees for a four-legged bestie in honor of National Adopt-A Shelter Pet Day on April 30th. And I'm talking to Pet Owner hopefuls about how to afford pet ownership. Spoiler, some of them don't have a plan. Before we head over, let's find out who's a good boy. So click those like and subscribe buttons and you might just earn your

yourself at T-R-E-A-T. All right, we're here at the Nashville Humane Association, and we're talking to some hopefully future pet owners. Is this right? Correct. Is that what you're here to do? Absolutely. Why are you guys getting a pet?

Well, I'm going to the Navy, and she needs a companion, so... So this is going to essentially replace you. You know that, right? Sometimes I think you love more than me. Tell us your name? Eliza. And who's this? This is London.

I don't know why I went to London to be like, tell us your name. London. Do you know what London's going to cost you year one in just expenses? No idea. But it doesn't matter. No. You'll figure it out. Yeah, I'll figure it out. You would get a second full-time job if you had to to take care of London. Yes. Do you know how much it costs to get a puppy and keep it alive? A trillion dollars? A trillion is close. That sounds about right.

I try not to figure that out on how much I'm gonna spend because it hurts your heart. Yeah, it's a labor of love, so. That's true. And it's a labor of finances, right? Yep. I mean, startup costs a few hundred dollars probably. Okay. So, like, maybe like $600?5.00? In a year. I'm looking to spend about close to $20,000? Huh? Yeah, close to $20,000.

$20,000? Yeah. If I take care of something that I consider mine, I'm going to make sure I take care of it. I got to maintain it. What would you spend $20,000 on? Getting the hair done, clipping, like the right type of food. Okay, so you're going all out. Going all up. This is your, but you're going bougie.

The food that you're. You see in the grocery stores that's in the coolers and don't the dog down. That's you. That's what my dog is going to be. Wow. Okay, well, the average cost about 1,500. So you're well above that, about 10x. Yeah.

That's impressive. Who's going to be covering the expenses for this dog? You have a job? No. Okay. There may be more allowance. There's going to be more chores that are going to be involved, so the allowance might have to move in accordance with that.

So you're going to take an allowance cut in order to cover these expenses. You ready for that? No. He's rethinking his whole life right now. That was an existential crisis. Life will never be the same for either one of them again. How do you actually plan to spend the 20K? Oh, so I already got me a spreadsheet together on what I'm going to spend.

It's like kids. It just works out. It just works. So you're just sort of like fingers crossed, I'll work hard, and the money will be sitting there. Pretty much. I don't think that's how it works. Usually with the animals, I go on Chewy and I count up all of their expenses, and then I set the reoccurrence to when I think they'll need it. So it usually ends up being like $100 a month for like the basics. Do you know what flea tick and heartworm prevention would cost a year for this one dog?

No idea. 50 to 200 bucks, just on flea tick heartworm prevention. Okay, what about like waste pickup bags? Well, I don't know. We use the grocery store bags. Oh, that's life hack. Yeah. You have a favorite grocery store bag?

Probably like a target is like thicker, you know? Target is the goat. The Kroger and Publix are kind of thin and half times. Yeah. I have trust issues with Kroger bags. Yeah, you got holes in them. She knows. Progaret, step it up.

Okay, how about treats and toys? How much would you spend on treats and toys for this puppy? All my allowance every single week. You heard it. All the allowance. That's a lot. Let's take a break from all the cuteness to talk about something less cute. Nope, not your friend's new baby who you have to call,

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by going to join Deleteme.com George today or just click the link in the description. That's join delete me.com slash George. All right, back to the cuteness. You guys, don't just do a tight shot on me. I'm talking about the animals. Chad, stop. Chad, stop. What will you likely overspend on for your pet? Like, what's the thing she's going to go too far with? My dog's going to have clothes. So close is what my dog is. We're talking like outfits. I'm shoes and all. Raincoats, ring boots. What's something ridiculous you, you put? plan on buying for your pet, if you're going to be honest.

A sausage costume. A sausage costume? We do get Halloween costumes for the dog, so that she's probably right on that. So regardless of what dog that's going to be in a sausage costume come October? She's going to have a really nice bed. Oh, like a bougie? Are we talking like Casper, like memory foam? What are we thinking? Probably like a crib size. Okay, that's big. That's serious. Yeah, well, I want her to have room. Yeah. I'm guilty of going into and paying full retail

as opposed to doing something on Amazon because I like to take them in, you know, and have him select the toy, you know? Like a local pet shop. I may need to rethink my budget now that I'm thinking out loud about. That's why we're here, baby. How would you afford an emergency pet visit? Do you guys have the money sitting there right now

in a savings account? Yeah. You're ready to, he seems so confident. You seemed a little bit like, oh, it's because it's... He handles it. Yes, I just take care of it. Wow. He handle all the expenses and everything.

So I kind of have, like, a little... Yeah. If something was to happen, like I have a little savings account. So what I do is I have a sinking fund where I put money away every month in case something happens. Yeah. You know, it just, you don't have to worry about it. Yeah. Okay, that's good. Did you know that 42% of pet owners cannot cover a surprise vet bill of $1,000 or less?

That does not surprise me. Without going into debt for it and putting it on a credit card. You guys would never do that. No. You're smarter than that. That would not happen at all. And Lily, you're never going to put it on a credit card, right? You're smarter than that.

What's the... How do you do that? She said, what's a credit card? What you said is very wise. Well, the real question is, who's rescuing who today? The dog is rescuing both of us. I think she rescued me. I'm going to rescue the fat, and then if it rescues me, I'm going to rescue it more.

Wow, that's adorable. London, say nothing if you want to go home with this person. Nailed it. This is true love. So what should we take from all that tailwagon? Well, similar to most big moves in life, like buying a car, relocating your family, hard launching your relationship on Instagram, and yes, even adding a four-legged friend in the mix, not consulting with your budget before going all in could be a costly mistake. I know, I know. Connie's kittens are so cute. It hurts. But like my friend and mentor Dave Ramsey likes to say, if it's not in the budget, the answer is no. Now, don't let that scare you away from pet ownership. Just put it on pause until you can figure out a plan to afford it.

And when the time is right, here are my favorite pet ownership tips to help you out. Number one, remember that a pet is usually more expensive on the front end. Some of the big initial expenses you can expect when you first get a dog are things like the cost of actually buying a cat dog or ferret from a breeder, which could be thousands depending on the breed. Not that I would know. Or adoption fees, unless, of course, you were at the every dollar pet adoption giveaway, in which case it was free. Then, of course, there's the initial vet exam and vaccinations, which could be 150 to 300 bucks. Unless Bob Barker teach us nothing, spay or neuter fees, of course, which could range from 50 to 200 plus.

Number two, work recurring expenses like food, flea tick, and heartworm prevention into your monthly budget. In fact, I'd make a list of what your pet requires on a regular basis, other than snuggles, and adjust your budget accordingly. Number three, this one's a hot take. Feel free to skip the pet insurance. You see, most plans have high deductibles that you have to hit before expenses are even covered. Plus, your plan may not cover the exact procedure or medication you need. Now, if you're gung-ho on getting pet insurance, just do your research and due diligence, and again, work that ongoing cost into your budget.

But here's another option. Start a sinking fund for your pet instead. So instead of paying premiums to the insurance company, just put that same amount in a separate savings account. And by setting aside a little bit every month, you'll be able to cover the unexpected pet costs when they pop up. As always, thank you for watching today. Make sure to share this with a dog dad or cat mom in your life and remind them, that's not a thing. And it's not like having a kid and never say that to anyone. ever again. Oh, and let me know in the comments how much you spend on your pet every year.

And if you like seeing what unsuspecting strangers have to say to me and a camera crew, there is more where that came from. Check out this video where I ask people some awkward money questions. It is peak cringe and YouTube gold. I'll drop a link in the description as well. Thanks for watching. We'll see you next time.