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What’s a few grand between furry friends? 

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Studies have found that around 70% of households — that’s more than 90 million families — have pets. While costs can vary, the average pet owner spends more than $1,000 a year on their furry friends.

And that’s if nothing goes wrong.

Routine veterinary care is expensive enough. If your pet faces a medical emergency, you can easily face the terrible decision of paying thousands for care — or saying goodbye to a beloved member of the family.

This is why personal finance guru Suze Orman believes that if you have pets, you need two important things: pet insurance and a dedicated pet emergency fund.

Pet insurance can save you thousands

Similar to human health insurance, pet insurance helps pay for both routine veterinary care as well as helping pay for more serious issues. The best pet insurance companies will offer plans that cover everything from flea treatments to x-rays and even surgery.

But, also like human health insurance, your pet’s pre-existing health conditions can seriously impact the cost of pet insurance, and may even limit your options for providers. That’s why Orman says you need to get coverage as soon as you can.

And Dr. Mary, a veterinarian and guest on Orman’s podcast, agrees. When asked if she recommends pet insurance, she said, “I say yes, double yes, underlining bold. Yes. And the sooner you buy it, the better.”

Happily, pet insurance is typically fairly affordable, with plans in the $1-a-day range not uncommon. Your pet’s current health, age, and breed will all impact the cost, however, so be sure to shop around to find the best rate.

A pet emergency fund: priceless

One of the most frequent tips Orman gives her listeners is to ensure you have a solid emergency fund. Since the start of the pandemic, she’s even suggested boosting the amount in that fund to eight to 12 months’ worth of expenses.

But if you have pets, she has a little extra advice: Set up an emergency fund for them, too.

For one thing, pet insurance typically works by reimbursement. You generally have to cover the cost out of pocket, then submit your claim to get your money back. This means you need the cash on to cover costs regardless of whether you have pet insurance.

What’s more, when something goes wrong, you don’t want to be worrying about how you’ll cover the cost while you’re also worried about the life of your loved one. Having an emergency fund dedicated to their care can make all the difference. It could very well save their life.

Dr. Mary has some advice on this topic, too. “I would really recommend $2,500 for an emergency event,” she says.

If that seems steep, consider this: Emergencies don’t typically occur conveniently during business hours. And if you need to go to an after-hours pet hospital, that automatically increases costs. Then there’s the cost of tests, treatments, perhaps surgery. These things can all add up fast.

Pets are totally worth it

All right, so we’ve talked a lot about how much pets can cost. But we’ve also talked about ways to keep those costs manageable.

And, at the end of the day — pets are worth it. They bring so much to our lives. Study after study has shown that pets make us happier and healthier. The least we can do is return the favor.

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