Is Your Pet Taking You to the Poorhouse?

By Larry Lane for InvestorZoo.com

According to The American Pet Products Association, $45.5 billion dollars will be spent on fidos, felines, ferrets and other pets. This represents a 10% increase from 2007. The average pet owner spent $115 just in pet toys for their dogs and $72 for cats in 2008. According to the 2009 to 2010 National Pet Owners Survey conducted by the pet products association, 62 percent of U.S. households own a pet equating to 71.4 million homes.

In addition to food and toys, there will be veterinary costs when your pet gets sick. Dog owners spent an average of $785 on vet bills last year, while cat owners spent $516, according to the American Pet Products Manufacturers Association.

How you can cut down on pet expenses?

1) Pricing for pet toys, food and supplies can vary widely. Pet food will be one of your costly monthly expenses. You’ll usually find better pricing at the big box stores such as PetSmart. Don’t forget to check online as well as your grocery store and warehouse clubs for bargains.

2) Medication: If you pet needs medication, it can be an expensive proposition. Much like human medication, discounts on pet medication can be found online. Discounts can range from10-30%.

3) Pet Boarding: If you’re going away on vacation or have been called out of town, your pet is going to have to be watched. If you can’t find relatives or neighbors to watch your pet, check your local vet for references and shop for pet borders. Boarding fees can range from $25-40 per day. Alternatively, you might check out www.craigslist.org under the “pets” section. These are usually private individuals who will pet set in their homes. Do not trust you pet to anyone who can’t provide references.

4) Insurance: yes, you can now acquire pet insurance to cover potential medical expenses. Expect to pay $15-$35 per month. If you decide to purchase pet insurance, your total cost will be approximately $175-$400 per year. Pet insurance may pay for itself should your pet need to have just one surgery once every 2 years.

5) Home clean up: New cats have been known to gnaw and scratch furniture. New puppies can bite cords of your home electronics. A new power cord to your laptop can easily cost $150 or more. (I know this from personal experience.) If you have carpets, expect to incur carpet cleaning expenses within 12 months of the arrival of your new pet. Carpet cleaning can vary and will depend on the square footage of your home. Expect a bill of $200 or more for a quality carpet cleaning company.

There has been much written about the health benefits of pets. According to the Center for Disease Control (CDC) Pet ownership Pets can decrease your blood pressure, cholesterol levels, and triglycerides and promote a general sense of well being. You’ll be walking your new puppy increasing the amount of exercise, and of course there are always dog parks which increase your chances of meeting new people.

If you’re considering buying a new pet, be prepared of some very big expenses. You should know if you have the ability to handle the expenses to care for your new friend as well as the ability to dedicate the time it takes to raise an animal. Expect to spend about $1000 the first year you buy your new best friend and about $500 per year thereafter. If you’re already strapped for cash or in debt, you really have to think twice. Your Roth IRA can really use $1000 and contributions of $500-$1000 per year.

Larry Lane is the editor for InvestorZoo.com, a social networking site dedicated to personal finance. Email questions and comments to Larry.Lane@InvestorZoo.com