Get Rid Of The $1,000,000 Dog

dog

You love your pet don’t you?

Are you sure about that………………….?

If you have a pet dog or cat, I’m assuming that it will cost you $1,000 per year (food, litter, regular vet, emergency vet, boarding etc…..) for the life of this pet and subsequent pets. See info from http://www.moneyunder30.com/the-true-cost-of-pet-ownership

If you invest this money each and every year until 65 – then with 2% inflation and an 10.2% average return on investments, that comes to $935,000 at age 65.

Let me repeat that – $935,000 savings at age 65!!!!!!!!! The calculation is shown at the end.

Obviously, don’t get rid of the dog, but maybe you should think about delaying your pet ownership (or buying a replacement Fido/Fluffy) until you are debt free and funding retirement and savings by 20% of your income. Or as a compromise, if you can afford to have your pet; put the same amount per year into an investment saving/retirement fund to match your pet costs.

The concept of a pet is just a metaphor. it can be anything you spend money on that you can live without before your reach the level of financial security.


The table below calculates the cost of having one pet assuming annual costs are $1,000 at the beginning, 2% inflation and 10.2% return on investments.

Column 1 is your initial age, column 2 is the accumulated cost of the pet, column 3 is the accumulated level of invested savings, column 4 is the cost for owning your pet each year.

Age Pet cost  Invested Cost per year
21 $1,000 $1,000 $1,000
22 $2,020 $2,122 $1,020
23 $3,060 $3,379 $1,040
24 $4,122 $4,785 $1,061
25 $5,204 $6,355 $1,082
26 $6,308 $8,107 $1,104
27 $7,434 $10,061 $1,126
28 $8,583 $12,235 $1,149
29 $9,755 $14,655 $1,172
30 $10,950 $17,345 $1,195
31 $12,169 $20,333 $1,219
32 $13,412 $23,651 $1,243
33 $14,680 $27,331 $1,268
34 $15,974 $31,413 $1,294
35 $17,293 $35,936 $1,319
36 $18,639 $40,948 $1,346
37 $20,012 $46,497 $1,373
38 $21,412 $52,640 $1,400
39 $22,841 $59,437 $1,428
40 $24,297 $66,957 $1,457
41 $25,783 $75,272 $1,486
42 $27,299 $84,466 $1,516
43 $28,845 $94,627 $1,546
44 $30,422 $105,856 $1,577
45 $32,030 $118,262 $1,608
46 $33,671 $131,965 $1,641
47 $35,344 $147,099 $1,673
48 $37,051 $163,810 $1,707
49 $38,792 $182,260 $1,741
50 $40,568 $202,626 $1,776
51 $42,379 $225,105 $1,811
52 $44,227 $249,914 $1,848
53 $46,112 $277,290 $1,885
54 $48,034 $307,495 $1,922
55 $49,994 $340,821 $1,961
56 $51,994 $377,584 $2,000
57 $54,034 $418,138 $2,040
58 $56,115 $462,868 $2,081
59 $58,237 $512,203 $2,122
60 $60,402 $566,613 $2,165
61 $62,610 $626,615 $2,208
62 $64,862 $692,782 $2,252
63 $67,159 $765,743 $2,297
64 $69,503 $846,192 $2,343
65 $71,893 $934,894 $2,390

 

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