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FINANCE COST OF OWNING A PET

bob@simplesitecompany.com (Bob Hansen) — Tue, 12 Oct 2021 16:58:55 GMT

Has a dog or cat grabbed hold of your heart? It doesn’t take much. A paw on the arm. A lick on the nose, or a soft purr or whimper can turn most of us into dog or cat parents in minutes. With animal shelters across the U.S. frequently at their max, there are a record number of dogs and cats available for adoption. Of course, there are also those that are looking for a particular breed, and are willing to spend hundreds, if not thousands of dollars when they find it.

But whether you’re looking to adopt or purchase from a dog breeder, you need to be aware of the true cost of owning a pet. Here are just a few things to think about:

The cost of the initial investment. The initial cost of adopting a cat or dog varies, depending on whether the adoption is from an animal shelter or is obtained directly from a breeder. While shelter fees typically run between $50 to $250, the cost of buying a dog or cat from a breeder can be as high as $3,000. Of course, you’ll also have to tack on the essentials such as a crate or litter box, vaccinations, food, and training classes, which can bring your initial investment to between $1,000 to $4,000.

With improved care, dogs and cats today can live more than 15 years. That means you will be responsible for that dog or cat for almost as long as you would an infant. Today, the average monthly cost of owning a dog or cat is around $160.00 a month, which includes food, toys, treats, medical expenses, and even pet-sitting services. Multiply that by 15 years, and you’re looking at a cost of more than $28,000 over the life of your pet.

Like humans, emergencies can happen to pets as well. If something does happen, are you financially prepared to pay the vet bills? In the past, many pet owners have had to choose euthanasia if their pet became ill or was injured because they could not afford the vet bill. Also keep in mind that while pet insurance has become a popular option for pet owners, many of the insurance plans are structured on a reimbursement basis, meaning you pay for the service and you’re reimbursed. Be sure that you can absorb that cost before you commit to owning a pet.

While it’s true that many places have become more pet-friendly in recent years, there will likely be a time when you cannot take your pet with you; whether it’s a necessary business trip, or to a location that doesn’t offer pet-friendly facilities. The average cost of boarding a pet or hiring a pet sitter can exceed $30.00 a day, or higher.

If you’re an apartment dweller, consider that you’ll likely be paying an additional security deposit if you have a dog or cat. Also, whether you rent or own your home, consider the potential cost should your pet damage anything such as carpeting.

If you’re ready to make the commitment, for better or for worse, and understand the potential costs involved, you’re on your way to sharing your life and your love with a creature that will love you like nothing else will.

5 THINGS TO TEACH YOUR KIDS ABOUT FINANCES

bob@simplesitecompany.com (Bob Hansen) — Tue, 12 Oct 2021 16:58:53 GMT

If you’ve spent more than five minutes on a kid’s television network, you’ve seen just how inundated young kids are with commercials for everything from the latest gadget, to some dreadful snack that features something gooey and/or messy. It’s also safe to bet that many of these kids run to their parents, wanting to buy some or all of these items.

It’s difficult, if not impossible for younger kids in particular to understand the dynamics of finances. But instead of cursing those television networks, use them as a way to teach your kids some elementary money management principles.

1. For kids under five, one of hardest things to understand is that you can’t have everything you want. We’ve all seen kids have a melt-down at the store, and even worse, we’ve seen Mom or Dad give in and buy them the toy, candy bar, or cookie, only to stop the glares from fellow shoppers. Instead use this as a teaching moment, which admittedly is much easier said than done. But by taking your child outside until they calm down, you’ve taken the first step towards teaching them that while it’s okay to want something, that doesn’t mean you’ll get it.

2. For kids up to age 10, it’s important that they start making educated choices about the things they want. Teaching your kids that everything they hear on commercials isn’t necessarily accurate can help manage their buying impulses later. This is an important lesson, and one that some adults could stand to learn as well. Witness the success of late night infomercials that seek to sell you everything from professional grade knives to cosmetics that will make you look 20 years younger, proving that we can all fall for a good sales pitch, no matter how old we are. Learning this at a young age will go a long way towards good money management as they mature.

3. Encourage them to start earning their own money. For younger children, provide them with a list of chores that they can consider their ‘job.’ By completing those chores on a timely basis, they can earn money for what they want to buy. But the no chores/no money policy has to be abided by, or this lesson will quickly lose its effectiveness.

4. Help them with their first purchases, but leave the final decision up to them. If your child’s heart is set on a particular item, let them buy it with the money they’ve earned. By all means, help them make an informed decision, and make sure it’s age appropriate, but after that, stand back and let them buy the item, whether you think it’s worth the cost or not.

5. These same principles apply as your kids get older and the stakes become higher and much more expensive. As your kids become young adults, they’ll be looking at things like clothing, cars, and even college. The principle that they learned when they were five still applies – you can’t always get everything you want. What you can do is encourage them to compromise on the smaller things, and hold out for what’s really important.

Money management can be tricky, but if you teach your kids the principles while they’re young, it’s more likely that they’ll become fiscally responsible adults.

SMALL BUSINESS OWNER RETIREMENT: DEALING WITH AN UNEXPECTED EXIT

bob@simplesitecompany.com (Bob Hansen) — Tue, 12 Oct 2021 16:51:48 GMT

You’ve spent many years building your business from the ground up, working through the highs and lows of entrepreneurship. Now, as you’re nearing retirement age, it’s time to think about what will happen to your business when you’re no longer working. And while you might have been planning your retirement for many years, there may come a time when you need to retire earlier than expected—whether it’s because of health, a sudden downturn in business, or a family emergency. Here’s what to do if you’re facing an unexpected exit.

EVALUATE YOUR FINANCIAL SITUATION

The most important thing to do when facing an unexpected—and potentially early—retirement is to look at your financial situation. First, review the non-retirement funds you have available. Especially if you’re retiring early, you may need to depend on your liquid assets and non-retirement savings accounts to get by until age 65.

How does your current financial situation compare to where you want to be at retirement? What gaps do you need to fill? Will you have access to your retirement savings accounts right away or will you need to supplement your income in other ways? You may consider claiming Social Security earlier than planned, but keep in mind that your payments will be larger if you’re able to delay, even for a few months.

Not only should you consider where you are in terms of savings goals, but also in terms of expenses. Is there debt you still need to pay off? If so, you may consider consolidating or refinancing that debt to ease the financial burden. Do you have a plan for your health needs? If you’re younger than 65 you won’t be eligible for Medicare, so it’s important to research other health plans available to you, especially if your early exit is because of a medical issue.

Once you’ve taken stock of your financial health, you can make informed decisions about what’s next for your retirement and your exit from your small business.

PLAN YOUR EXIT

Depending on your age and the size of your company, you may already have an exit plan in place. In that case, take a look at your plan to figure out if it still works for your situation. If you don’t have an exit plan, now is the time to set one.

There are a few options for exiting your business, including:

Liquidating the business
Selling the business to someone you know
Selling the business to another business
Selling the business in the open market

It’s essential to consider the state of your business before planning your exit strategy. Each strategy has its pros and cons. Liquidating your business can be the quickest way to exit, especially if you’re dealing with financial strain, but it’s not always the most profitable plan. Alternatively, you may consider selling your business to a family member or close friend who knows the business well for an easy transition—but be aware that selling to someone you know can be complex and has the potential to put a strain on your relationship.

CONSULT A TRUSTED PROFESSIONAL

Above all, consulting a financial professional is the best way to handle an unexpected or early retirement from your small business. Financial professionals can help you evaluate your financial situation and your needs moving forward, as well as educate you on all potential exit strategy options and pitfalls. Having a trusted professional in your corner, especially involving a small business transition to family and friends, is a great way to get an outside, objective perspective on your best options for retirement.