Who doesn't have pets? Most of us have or have had a dog, a cat or other types of pets at one time or another. If so, you know how expensive it can be when they get ill and need medical attention.
Commercial pet insurance can be expensive. Like traditional health insurance for people, it doesn’t cover all medical procedures and treatments. Also, keep in mind that if you never need the insurance (we certainly hope so), you wouldn’t be able to get the money back that you paid the pet insurance company, accrue interest or be able to apply the premiums to another pet.
A better option is to consider setting up a savings fund. Consider setting up a medical saving account for your current or future pets you might adopt.
How to create a specialized saving account:
Start by putting a large amount (such as $500) into a special savings designated just for this purpose and then continue to deposit $20 per month into the account. By simply creating a specialized saving account for your pet, you avoid being in the position where money has to be strongly considered along with treatment options.
Use this method whenever you acquire a new responsibility. Simply deposit an eighth or a quarter of your saving goal into a dedicated saving account as the account’s start-up fund (or a multi-use account that you keep records for what money in the account is for what purpose). Once the saving account is open and initially funded, you set up an automatic transfer through your bank to put $10 or $20 (or whatever amount you choose) into the new saving account from your checking account every month. This automatic deposit removes the temptation to spend the money on something else.
You could create a specialized saving account for your automobile — $20 a month can be put aside in an account to cover service needs for your aging car. You can create a fund to save for larger home improvement projects or home organization project.
These specialized saving accounts reduce your stress, allow you to cover large expenses when they arise, and help you to live with an uncluttered budget (a budget where you spend less than you earn).
Do you have specialized saving accounts? Would setting one up help you to prepare for an emergency expense? What reasons do you have to create a specialized saving account?
I would love to hear your ideas!
In the meantime, if you need some help creating a budget, why not consider my U Can Do It Budgeting System that I developed based upon the budget I have used for myself for over 20 years? You can find it at my ABS Store (look for the tab) right on this website.
Enjoy your week!