How do I budget for my pet care expenses?

[00:00:00] Ralph Estep, Jr.: Have you ever looked at your furry friend and wondered how much is too much when it comes to pet care? Well today, I'm diving into a topic that might just save you thousands of dollars and more importantly, a whole lot of heartache. Because I've sat in the vet's office with our dog and had to struggle with those tough diagnosis. And on today's show, I'm going to help you make those decisions. Well stick around and meet my son, Ryan, and find out how his decision to invest in pet insurance turned out to be a financial lifesaver when his four-legged companion needed hip surgery. So if you've asked yourself, how do I budget for my pet care expenses?

[00:00:39] Ralph Estep, Jr.: You're in for a treat. And we all know our furry friends love those treats.

[00:00:49] Ralph Estep, Jr.: Well, let's take a quick look back at yesterday's show. Yesterday, we tackled the question, what steps can I take to avoid a tax time bomb in retirement? Nobody wants that time bomb to go off. So if you miss it, I'm going to encourage you to go back and listen to it. We covered some crucial strategies that could save you a significant amount of money down the road.

[00:01:08] Ralph Estep, Jr.: Remember, all of our past episodes are available right on our website. So I'm going to encourage you to check them out.

[00:01:16] Ralph Estep, Jr.: Now I received a great message from one of our listeners and listen, this message really resonated with me as a pet owner, I get it. And this one comes from Amelia. Amelia wrote this.

[00:01:26] Ralph Estep, Jr.: "Ralph, I've been a faithful listener of your show for the past year, and I can't tell you how much it's impacted my life. Your advice has helped me get my finances in order, and I'm finally starting to see the light at the end of the tunnel. But I have a question that's been weighing on my mind lately. My husband and I recently adopted a rescue dog and we're over the moon with our new family member. We call him Jaxson. He's a feisty little guy, but he has quickly become a part of our family. However, we're realizing that pet care expenses can add up quickly. Between food, vet visits and unexpected health issues, we're worried about how to fit those costs into our already tight budget. How do you suggest we plan for these expenses while still being responsible with our finances? And is there a point where we need to draw the line on how much we're willing to spend on our pet's care? I know this might be a sensitive topic, but I trust your guidance and would really appreciate your perspective on this. Thank you for all you do to help us navigate these financial challenges while keeping our faith at the forefront."

[00:02:31] Ralph Estep, Jr.: Well Amelia, that is a great question. And I want to thank you. It's a heartfelt message and I appreciate you being a loyal listener and listen, my wife and I we're dog people too. So your question really touches on an issue that many pet owners grapple with, and I'm glad you brought it up. It's a perfect example of how our financial decisions often intersect with our values and emotions. Now, listen, before I answer Amelia's questions, I want to remind you that this show is all about answering those questions. Those financial concerns from that Christian perspective. So if you've got a question you need an answer to, send it to me. You can do that by going to justaskralph.com and submitting your question. Because remember this. The whole point of the Ask Ralph Show is to help you navigate your financial journey. So I’m going to encourage you, don't be shy.

[00:03:20] Ralph Estep, Jr.: Now, as we consider Amelia's question about budgeting for pet care expenses, a particular Bible verse comes to my mind. It comes from the book of Proverbs 12:10, and it says this. "The righteous care for the needs of their animals, but the kindest acts of the wicked are cruel." That's a tough verse to deal with but listen. It reminds us that as Christians, we've got a responsibility to care for the creatures that God has entrusted to us. And truth is, it's a beautiful reflection of God's own care for us. But here's the thing. You've got to realize it's important that you balance that wisdom with good stewardship of your resources.

[00:04:05] Ralph Estep, Jr.: So with this biblical principle in mind, let's get right to today's show and address Amelia's question about budgeting for pet care expenses. So without further ado, let me introduce my son, Ryan.

[00:04:15] Ralph Estep, Jr.: Well now, I want to welcome a special guest to the show. Yes. This is my son, Ryan. Ryan, thanks for coming today.

[00:04:22] Ryan: I appreciate it, you know, and honored to have you on your podcast.

[00:04:26] Ralph Estep, Jr.: I'm always talking about you on the show, so now people get to make a connection with who you actually are.

[00:04:31] Ralph Estep, Jr.: So today we're talking about pets. And more specifically, we're talking about pet insurance. And Ryan, I know you went through this with Firefly. So I wanted to talk to you about that today, and you can tell us a little bit about your story. So how did you get Firefly in the first place?

[00:04:44] Ryan: So my wife and I adopted Firefly back in 2019 from Clemson University.

[00:04:52] Ryan: And basically, I had him down in Georgia when I took him to my first like veterinarian visitor. My vet recommended that I should get pet insurance just to have and be safe and, you know, just for the unforeseen bills that could occur with having a pet and whatnot.

[00:05:12] Ralph Estep, Jr.: And what did you think about that at first?

[00:05:14] Ralph Estep, Jr.: Were you thinking, wow, that's an expense I really don't want to have to pay?

[00:05:17] Ryan: Yeah, it was an expense that I wasn't necessarily expecting. But I'm always a very forward-thinking person and thought it was a good idea just to have in case something did happen, and I didn't have the money to take care of my pet if something did happen.

[00:05:38] Ralph Estep, Jr.: As the truth be told, you were just starting out in the Coast Guard, you are young and in your career, so you didn't have a big bank of emergency funds and access to a bunch of cash, right?

[00:05:48] Ryan: That's correct. Yeah.

[00:05:50] Ralph Estep, Jr.: And that's kind of the reason for insurance. So let's fast forward. So then what happened with Firefly?

[00:05:55] Ryan: So about 6 to 8 months after we adopted him, we noticed that he developed some kind of limp on his back right leg and we took him to our vet, and they did x rays and saw some concerning images. So they recommended this to an orthopedic surgeon for dogs. Went down there and they said that he needed to get a FHO surgery, which basically they remove part of the hip from the dog to basically get rid of the bone that's causing issue and whatnot.

[00:06:35] Ryan: And so it was a very expensive surgery and also a lot of Money for x rays and consultations on the front end, as well as a lot of therapy and rehabilitation on the back end of the surgery as well.

[00:06:51] Ralph Estep, Jr.: What would this have cost you if you didn't have insurance?

[00:06:55] Ryan: Probably about $4-5,000.

[00:06:59] Ralph Estep, Jr.: A lot of money for a young person.

[00:07:01] Ryan: Oh yeah. Especially for a pet. Yeah. And you're just not expecting it.

[00:07:05] Ralph Estep, Jr.: Yeah, absolutely. So what did the insurance end up costing? Do you remember what you paid?

[00:07:09] Ryan: So my deductible was $800 and most of that was met just with the x rays and the consultation with my vet and the orthopedic surgeon. So for the surgery itself and all of the rehab and all the exercises and stuff that he had to do with the physical therapist and stuff was mostly, if not all covered by insurance, the insurance.

[00:07:35] Ralph Estep, Jr.: So that really saved the day for you. So it was a wise investment from the front end.

[00:07:40] Ryan: Very wise investment, yeah.

[00:07:42] Ralph Estep, Jr.: So I think you would recommend to all of the listeners to definitely consider pet insurance.

[00:07:47] Ryan: Yeah, for $15 to $25 a month, yeah, it's a pretty good investment to have, especially for a pet that you might have for 10 years or so or more.

[00:07:58] Ralph Estep, Jr.: All right. So now I'm going to ask you the million-dollar question. So one of the listeners sent in a question and they asked about pet insurance, but they also asked a more difficult question and that is do you have a number where I’m not willing to spend any more than that? So I’m going to pose that question to you. I know your mom and I had a discussion earlier about her number might be a little higher than mine but is that something you thought about? You know, when you got when you got this dog, you know Firefly became a part of your life, but do you have in your mind like this number?

[00:08:24] Ralph Estep, Jr.: Like this is what I'm willing to spend. I know yours is a little bit different cause you've got insurance, but do you have a number like, and if you do, how did you get to that number?

[00:08:33] Ryan: Well, I think there's a lot of things that would go into that number per se. And one of them would be at least the age of the dog, the life expectancy of the dog because if it was a smaller dog, you know, it might live to be longer, you know, 15, 16 years old or something like that.

[00:08:50] Ryan: So I think it ultimately depends on the position that you're in with your pet, and if you just got it or it's nearing the end of its life, but I mean, a thing, a number for me that I would be willing to spend would be about like to 5 to $6,000 range. Kind of what I already, you know, paid for Firefly when he had to get his surgery and rehab and everything like that.

[00:09:13] Ryan: But like, it's a personal decision that, you know, you have to base it off of what you're willing to spend and also the financial position that you're in and that you can spend.

[00:09:25] Ralph Estep, Jr.: You're a guy that plans ahead. You're a guy that has that emergency fund. You're doing all the right financial decisions, but, but so had you not had the insurance, I mean, Firefly was what, six months to a year old and you were faced with this major surgery that had you not had this insurance, it would have been a real tough thing for you to handle.

[00:09:44] Ryan: Yeah, definitely. You know, it would've came to the realization of I either have to put on a credit card or, you know, figure something else out, you know, ask someone to borrow money or something like that to take care of it, you know, because he was just, I wouldn't say suffering, but he was definitely, you know, struggling to, with the day to day daily routine stuff that he had to do and whatnot.

[00:10:08] Ralph Estep, Jr.: Excellent. Well, Ryan, I want to appreciate you for coming on and you answered the question perfectly. And I'm assuming Firefly's doing great these days, right?

[00:10:15] Ryan: Yeah, he's doing really good actually, yeah.

[00:10:17] Ralph Estep, Jr.: Well that's a good thing. Well thanks again, Ryan. And later in the show, I'll talk to you about some of the things that Ryan mentioned and that is, you know, how do we make these decisions about how much to spend?

[00:10:26] Ralph Estep, Jr.: But again, Ryan, thanks so much for joining us on the show today.

[00:10:30] Ryan: Of course, no problem. I appreciate it.

[00:10:31] Ralph Estep, Jr.: Now you might be thinking, Ralph, that's great for Ryan, but what about the rest of us? How can we budget for these kinds of expenses? Well, let me break it down for you with some actionable steps. And the first one is this. First and foremost, as my son, Ryan learned, you really got to consider getting that pet insurance. We saw this with Ryan's story.

[00:10:50] Ralph Estep, Jr.: It can be a real lifesaver. But Ryan didn't talk about this, but before you jump into that first policy you see online, this is a time to shop around. You've got to compare coverage options. And this is one of those things. I say this on the show all the time, read the fine print because some policies might just cover accidents.

[00:11:10] Ralph Estep, Jr.: Some might just cover illnesses while others might just include routine care. You've got to understand what's covered and what's not. Now the second thing. If you decide pet insurance isn't for you or it's too expensive, so even if you don't get that insurance, this is the thing I'm going to tell you to do. Start an emergency fund specifically for pet expenses.

[00:11:31] Ralph Estep, Jr.: I'm going to encourage you, set aside a certain amount each month. Even if it's just $20 or $50, because over time, this can add up and that can be a significant safety net. That emergency pet expense fund can really help you in that time when you get that diagnosis, and you've got to spend some money for your pet.

[00:11:51] Ralph Estep, Jr.: Number three, this one's important as well. You've got to research the average annual pet care costs for your specific type of pet. I'm going to encourage you to do a budget. If you don't budget, you're not going to get there. And the thing is, and I've learned, you know, we have big German shepherd dogs. And the truth is larger dogs typically cost more to care for than smaller dogs or cats.

[00:12:10] Ralph Estep, Jr.: You got to build that into your budget. They're going to eat more. Many times, they're going to have hip and elbow issues that you're going to have to plan for. Another thing I'm going to recommend. Number four on my list here is look for ways to save on routine care. The truth is many local shelters have what they call low-cost vaccination clinics. Even some pet stores have monthly specials on flea and tick treatments. So that's a way to really trim your budget while making sure your furry friends still get the care they need.

[00:12:38] Ralph Estep, Jr.: Number five. This one is a big one. You might want to consider learning some basic pet grooming skills, cause it can save you money on professional grooming services and I'm not trying to take money away or business away from those groomers. But this may be an area where if you learn some basic skills, you can save yourself a ton of money and help you on that budget. And here's the thing.

[00:12:58] Ralph Estep, Jr.: If you don't listen to anything else I say. Because so many people, my wife and I meet these people and they're not good about this. You've got to be proactive about your pet's health. You got to take them to those regular checkups. Look at what they're eating because the truth is a healthy diet can prevent more costly health issues down the line.

[00:13:17] Ralph Estep, Jr.: It's just the truth. If you take care of those regular checkups, you get the blood work done. You pay attention to what they're eating. Make sure they're getting enough exercise. Now I'm not a veterinarian but think about it. Just like us. If we take care of our bodies, if we eat healthy, and we get our exercise, it truly does cut down on those costly health issues down the road.

[00:13:37] Ralph Estep, Jr.: Now let me address the elephant in the room. Or should I say the dog in the living room? Amelia also asked about setting a maximum spending point for pet care and she acknowledges the controversial topic and she's right. And I'm going to be really careful how I address this. And it's going to be an individual's decision, but it's also important that we think about it because as Christians, we're called to be good stewards of our resources. And that means making wise financial decisions that align with our values and responsibilities. And listen, I get it. I've got two pets on the mantel of my fireplace. I've got their ashes because we went through their whole lives, and we had to make those tough decisions. We'd love our pets dearly. And listen, if you're a pet owner, we know you want to provide the best care possible. But we've got some economic realities that we need to balance. We've got other financial obligations. We've got to provide for our families.

[00:14:29] Ralph Estep, Jr.: We got to save for the future. We got to give to our church and charities. So setting up a maximum spending limit for pet care is a personal decision, Amelia. And there's no one size fits all answer. It really depends on your financial situation. It depends on your other responsibilities and yes, it depends on your emotional attachment to your pet. So you might be saying, Ralph, how do you suggest I approach this difficult decision?

[00:14:52] Ralph Estep, Jr.: It's hard. Trust me, I get it. And I don't want to cause anybody to get upset with me. So here's what I'm going to recommend to make this very personal individual decision. Number one. It's a Christian podcast. First, pray about it. This is a time to ask for God's wisdom and guidance in making this decision. He is the person you should go to first. The second thing you've got to do. You've got to have an honest conversation with your family about your finances and what you can realistically afford. Another thing.

[00:15:23] Ralph Estep, Jr.: Number three. And when I had dinner with a couple last night, we talked about, I was going to be doing this show today. And the thing that they brought up and it was a hundred percent, right. They said, you got to consider your pet's quality of life. Because sometimes expensive treatments might prolong their life, but not necessarily improve its quality. I remember our last German shepherd.

[00:15:42] Ralph Estep, Jr.: His name was Buddy. And, you know, Buddy was starting to act kind of strange. We took him to the vet. And the vet ran some tests, and we found out that buddy had cancer. Now there was a way to treat that. We could have sent Buddy for chemotherapy and radiation. But here's the thing. Buddy's a 10-year-old dog. And he was a, he was the most important part of our family.

[00:16:04] Ralph Estep, Jr.: I'm not going to lie about that. But we looked at the vet and the vet said, listen, here's the truth. You're going to spend a lot of money. And at the end, we might only keep him alive for another 30 or 60 days, but his life's not going to be a big quality of life thing. He's going to lose his hair. He's probably going to be sick all the time. So now that goes into that question.

[00:16:25] Ralph Estep, Jr.: You got to consider your pet's quality of life. And like I said, discuss this with your veterinarian. Because these vets deal with this every day, and they can give you valuable insight into the potential future health issues of your pet and the associated cost with that. And the, the fifth thing I'm going to say. Remember that setting a limit doesn't mean you don't love your pets. That you don't love them any less. It's just about being responsible and being realistic. And here's one thing I'm going to encourage you to do. If you do set a limit and I'm not telling you to do that, I'm not encouraging you to do that. That's an individual decision. But if you do it, write it down and keep it somewhere safe because in the heat of the moment, when your pet is sick or injured, the truth is your emotions are going to cloud your judgment.

[00:17:10] Ralph Estep, Jr.: And if you have a predetermined limit that can help you guide your decision during these difficult times, it will make your life so much easier. Remember this. Being a good steward of our resources doesn't mean we can't provide excellent care for our pets. But it's about finding that right balance and making informed decisions. So, let me do a quick recap of what we discussed. We discussed the importance of budgeting for pet care expenses. We included the option of pet insurance. I talked to you, and we met my son, Ryan. We looked at some practical steps you can take to manage these costs, from setting up a pet emergency fund. Being proactive about your pet's health. And we also tackled that sensitive topic about setting limits for pet care.

[00:17:49] Ralph Estep, Jr.: And we emphasize the need for balancing good stewardship. And here's the thing. As we wrap this up, I want to remind you if you're struggling with managing your finances, whether it's budgeting for pet care like Amelia. Or maybe you've got some other financial challenges, I'm here to help because the truth is, oftentimes, it's not about spending on pets. It just isn’t. It's about your overall financial situation. And that's where I can help you be better off because the truth is the better off you are financially, the less difficult these decisions become because you've got a plan. You've got an emergency fund, and you are financially secure. Don't you want that for yourself today? Don't you want to be able to not be stressed and that decision you don't what you want to be able to have that emergency fund. Don't you want to be able to have that rock solid budget you've built in these expenses? Well, I can help you. You can schedule an appointment with me by just going to askralph.com and clicking on the banner that reads book a call with Ralph. And for a $150 consultation fee, I will work with you to help you improve your personal finances. Maybe you need help with your business finances.

[00:18:58] Ralph Estep, Jr.: Maybe you're looking for ways to grow your business. It doesn't really matter. I can help you achieve all of your financial goals. Now you might say, Ralph, that's expensive. And you're right. It is expensive. But here's my guarantee. I guarantee that if you meet with me, I will give you at least $150 worth of value. And if you don't get that value from our meeting, I'm going to refund your money. So I think I've made the point here today.

[00:19:24] Ralph Estep, Jr.: So schedule today and let me create a personalized plan for you. Now before we go, I want to give you a sneak peek of tomorrow's show. Tomorrow, we'll be discussing the question: should I have joined accounts with my children or rely on a power of attorney? I'm going to share a real-life mother daughter story which completely illustrates just how this can go bad. And trust me, you don't want to miss that one.

[00:19:46] Ralph Estep, Jr.: This one went really bad. So that's an important topic that touches on estate planning and family dynamics. So you don't want to miss it. And remember, we talked about pets today but it's all about the bigger picture. My passion is to help you achieve financial success. I want you to live out your dreams, and I want you to grow in your faith. And I know this. Working together, we can master your finances from a Christian perspective. So as I always say, stay financially savvy, and God bless you.