Pet Bills Keep Surprising You Here’s How to Plan

Episode Title: Pet Bills Keep Surprising You? Here’s How to Plan
Host: Amy Castro
Guest: Joe Okaly, CFP

Summary: Amy and Certified Financial Planner Joe Okaly break down a simple, proactive approach to planning for pet expenses. They cover acknowledging real costs, deciding between insurance and self-funding, and automating a “pet fund” so bills stop feeling like emergencies.

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Veterinary Disclaimer: This episode focuses on finances. For medical decisions, consult your veterinarian.

Transcript Note: Lightly edited for clarity while preserving meaning and timestamps.

Chapters:
00:01 Teaser and setup
02:20 Guest welcome
03:57 Step 1: Acknowledge real pet costs
08:49 Flip the equation: pay yourself first
14:27 Insurance vs self-funding
19:14 Annual review and lifecycle costs
24:34 Start small, automate savings
29:00 Where to find Joe
29:29 Takeaways and close

[00:01] Amy Castro:
We’ve talked before about how to save money on pet food and vet bills, but today we’re taking it a step further. Instead of scrambling to cover those costs when they happen, we’re looking at how we can plan for them before they do. In this episode, we’re gonna talk about how to take a more proactive approach to all your pet expenses so you can be prepared, confident, and stress-free when those costs come up. So stay tuned.

You’ve reached the Pet Parent Hotline, your lifeline to practical solutions for your toughest pet parenting challenges. I’m your host Amy Castro, and I’m here to help you cut through the noise and turn expert advice into step-by-step strategies so you can stop chasing your tail and start enjoying life with pets again.

Most of us can admit, we’ve had at least one, how the heck did this get so expensive moment when it comes to our pets. Maybe it’s when the vet bill hits the same week as your car payment, or when your dog’s daycare costs start to rival your grocery bill. But the truth is, pets are not one-time expenses. They are ongoing financial commitments. But that doesn’t mean that our pets’ costs have to be stressful or unpredictable, even when it comes to things like emergencies. With the right mindset and just a little bit of planning, you can take control over your pet budget instead of letting pet expenses control you. So today we’re gonna break down how we can think about pet care expenses the same way that you probably should be approaching any other household cost. So you can be ready for what’s coming, avoid unnecessary debt, and give your pets the care they deserve without completely draining your wallet.

My guest today is Joe Okaly, a certified financial planner, author of The Financial Pinwheel, and owner of New Horizons Wealth Management, and will be a featured TEDx speaker in 2026. Through books, podcasts, and online resources, his goal is to help 100,000 middle-class families learn sustainable money habits. This way they can spend less time worrying about money and more time enjoying life. How about that?

Joe, welcome to the show. I’m so glad that you’re here to help us talk about how pet parents can get ahead of their expenses instead of being blindsided by them.

[02:20] Joe Okaly:
Yeah, Amy, it’s awesome to be here. I’m really looking forward to our conversation today, so it should be great.

[02:26] Amy Castro:
Great, yeah, I bet you never thought you were gonna end up on a pet podcast, did you?

[02:29] Joe Okaly:
I can honestly say I was not expecting that. You really blew me away when you reached out to me. I thought it was such a great idea and it was, why has nobody else thought about doing this before? So I’m really excited about today’s conversation.

[02:41] Amy Castro:
Thank you, yeah. It’s everything that I run into when it comes to pet parenting. As somebody that runs a rescue, so many of the times that people are reaching out to either surrender their pet or to see if there’s anything we can do to help them with their pet, it comes down to finances. And it’s really easy to write things off and say, well, you should have thought, because rescue people can be very judgy. And a lot of rescue people would say, you know, well, you should have thought of that when you got a pet, but you can’t think of everything and people’s situations change. But on the flip side of that playing devil’s advocate, I think we could do a better job, myself included, in planning. And that’s why I thought, well, you don’t need to be a pet expert to talk about planning for money. It could really be any expense that you’re trying to plan for. But here we’re trying to keep pets in homes and keep people able to pay for them, especially as things have gotten so crazy expensive when it comes to pet stuff.

So to kick things off, let’s just kind of keep it relatively simple and talk about what you think would be the first step in planning for pet expenses. Like I said, it’s easy for people to say, you should have thought of that when you got a pet. And maybe that is the first step in the process, but what would you advise people?

[03:57] Joe Okaly:
Yeah, and to your point for what people are thinking about, when I had dogs growing up, the first thing I thought about was not, wow, I can’t wait to plan my budget for this pet. It was, can’t wait to hold the pet and hug it and hang out with it and run with it outside. So the intention is great. So like you said today, let’s focus on some of that secondary stuff that’s also important. But people really aren’t trained for that. There’s very little financial literacy education in schools, which applies to pets and every other expense.

When we’re talking about pets in particular and what are some of the first things to think about, I think the biggest thing is just to acknowledge that a pet does have costs. There are going to be expenses that come along with it. Myself included, when I had pets growing up, I was really excited to get the pet and welcome them to my family. And the financial part of it though is very real. So there may be more costs upfront, whether it be going to the vet, vaccines, getting your house situated, buying the new dog bed, and then you kind of feel like you’re done, but you really are not gonna be done. It’s just the start of a longer journey.

If we’re being honest with ourselves, there is going to be some kind of an expense that comes up. There are monthly ones that we know about, like feeding the pet. There are regular ones throughout the year, like going to the vet. And then there are what I call regular, irregular events that happen for every pet owner. Part of life is going to be at some point, for me, it was my dog ate an entire butternut squash and we had to run him to the emergency room. There’s always going to be that kind of stuff. So the first big step is let’s acknowledge there are going to be expenses both planned and unplanned. If we’re going to have a pet, we need to make sure we’re of that mindset and create a plan to handle some of that stuff.

[05:37] Amy Castro:
On our adoption application for Starlight Outreach and Rescue, one of the last things you sign off on is a set of cost estimates. We throw some numbers in there, the ASPCA estimates for annual pet costs. I’ve never had anybody stop and question it. Do you think part of it is that those numbers just don’t seem real until people are paying them? They nod and smile and say, yes, I realize pets are expensive, they have to go to the vet. Where does that go wrong?

[06:15] Joe Okaly:
I think part of it is human nature. We feel like we’ll figure it out. We’ll cross that bridge when we get to it. But when we work with people who want a new car that’s more expensive and they ask if they can afford it, we say, this new car costs $200 more than your old car. Do you have an extra $200 right now? If you don’t, how are you going to come up with it? Same thing with a pet. If a pet’s going to cost $200 a month on average, do you have an extra $200 a month right now that you’re not spending? If you can’t afford that now, how do you expect to afford it for a pet?

[07:00] Amy Castro:
Right, that’s so true. Another thing I run into is renters who don’t realize the pet fees. We ask on our application and a lot of people say there are none. We call the complex and find out it’s a $400 deposit and $50 a month per pet. For some, that’s a deal breaker. How does a person start to get a handle on all these expenses? You can Google “what should I anticipate annually” for a cat, a dog, a pony.

[07:57] Joe Okaly:
I think a pony’s probably more expensive, but yeah.

[08:00] Amy Castro:
Yes.

[08:03] Joe Okaly:
If you do Google, you can get a general idea. It still goes back to the same point. There are going to be expenses. Practice asking, where am I going to take $200 or $300 a month away from now? Get into the mindset that this is something you can afford because you’re setting it aside every month. Acknowledgement is the first step, then we build from there.

[08:41] Amy Castro:
Okay. So the next step is figuring out how we’re going to actually pay for that once we realize the expense, correct?

[08:49] Joe Okaly:
Yes. Some expenses like food you’ll pay out of pocket. There’s also pet insurance. When I work on financial plans, most people think income minus spending equals saving, which often leaves no savings. We want to flip it to income minus saving equals spending. Take saving off the top. If your paycheck is $3,000, take $300 off the top, then live on $2,700. People resist because they can’t find 10 percent to save, but bills vary month to month. We do have flexibility.

Put savings aside first, then make the rest work. Whether saving for retirement or a pet emergency fund, handle the important stuff first. You’d be surprised how well people adapt.

[10:41] Amy Castro:
A lot of people say, I’m already in it. I’ve got the pet, the apartment, the car note. How do I go back and pull out from that? I’m already spending what I’m spending. Now I want to start putting money away. I’m going to take—

[10:56] Joe Okaly:
Can you clarify? What do you mean pull out from that?

[11:09] Amy Castro:
Ten percent away from that. What if there is no ten percent there, or five percent?

[11:19] Joe Okaly:
We ask, if tomorrow your income went down 10 percent, what would you do? Most people figure it out. If you can’t get to 10 percent, maybe start at 3 or 5. At least calculate the 10 percent number so you have a target. When you get a raise or bonus, take a piece of that increase to reach your 10 percent before lifestyle creeps up.

[12:28] Amy Castro:
People will figure out a way, at least in the short term, to get the ball rolling. Don’t look at it as “I decided to save,” picture it as an emergency where the money isn’t available. Pull it off the top and put it away where it’s not obvious.

[12:57] Joe Okaly:
The sooner you pull it out of sight, the better. Expenses like groceries and gas fluctuate, so there’s wiggle room. Start with a number. Maybe not 10 percent, maybe 5. Then push it a little further. If we pick $200, try $300. If $300 is too tight, we lower it. But if we start at $200 and you could have done $300, I never get calls saying, please take more money. People are often surprised they can do more. Remember, it’s still your money, just moved to savings. You have more power than you realize. Sometimes you build up to 10 percent over a year. The key is having a target.

[14:27] Amy Castro:
On putting it aside versus pet insurance. Neither of us are insurance experts, but people need to understand coverage. I get calls from folks who didn’t realize something wasn’t covered. For some, paying pet insurance monthly might be easier than setting savings aside because it’s a bill. Or do both?

[15:36] Joe Okaly:
Make it a conscious decision. People who don’t get pet insurance often aren’t intentionally self-insuring; they just hope nothing happens. So either get insurance and understand what it covers, or choose to self-insure and set aside a set amount monthly.

People are often more consistent paying a bill to someone else than to themselves. Ask how you’re most comfortable mentally. Do you want to lean on an insurer in some cases, or manage it yourself? If you have history, look at the last year or two. What did you pay, and what would insurance have covered and cost? If it costs $1,000 and would have paid $500, maybe it doesn’t make sense. Use data to make an intentional decision.

[17:19] Amy Castro:
Once you put a plan in place, I assume you reassess periodically over a pet’s life. Puppies cost more early on with frequent vet visits, toys, and mischief. Then a middle lull where things are predictable. Seniors often need more care. For example, my tiny Chihuahua’s dental was a thousand dollars, and small breeds often need more dentals than large breeds. It’s important to reassess. Do people predict these things well, or get caught off guard?

[19:14] Joe Okaly:
People have a lot going on, so they often don’t reassess. With money in general, at a minimum, look at your situation once per year. List bank accounts, investments, credit cards, mortgage. If bank balances are higher than 12 months ago, you can consciously move the excess to a pet emergency fund. Some people use a Christmas bonus or tax refund to seed that fund. Keep it in a separate account away from checking. Worst case, you save too much and have extra. That’s good. Roll it over.

[20:53] Amy Castro:
When savings are directly connected to checking, it’s easy to pull “a little bit.” If it’s in another account, it’s harder. Label it clearly in your own head, like Guinevere’s lifesaving account. Do you think that distinction matters?

[21:53] Joe Okaly:
The harder it is to access, the better. Retitle the account in your banking app to something like “Save My Dog’s Life.” Many clients keep emergency funds with us so they have to call to move money. A lot of finance is behavioral. Money is emotional. Set up systems that support you emotionally, like separation and naming, to increase your odds of success.

[23:01] Amy Castro:
I have to get a new roof. I moved money from my far-away account to my local account and immediately felt guilty. It does make it harder to take that money, which helps.

[23:41] Joe Okaly:
It’s your money and safe, but you’ve arranged things to support your goal, like parking far away so you walk more. You’re setting yourself up physically to reach the end goal.

[24:09] Amy Castro:
For people hearing numbers that feel unattainable, how do they reduce stress? I don’t want anyone thinking they must save $200–$300 or 10 percent right away.

[24:34] Joe Okaly:
Start with any number, $5 or $10. The habit matters more than the amount. Automate it so you don’t rely on memory. Use the same auto-payment principle companies use, but for yourself. Set $10 on the 15th, then $20, then $30. The hardest step is the first one. As income increases, capture a piece of it. You’ll be surprised how quickly it adds up, and you’ll feel empowered. Don’t wait until you can do $100. Start with five. Build the habit.

[26:35] Amy Castro:
Don’t stress over a perfect target. Whatever you’ve saved is money you wouldn’t have had and reduces the credit card hit and interest if a bill comes up.

[27:07] Joe Okaly:
Perfect isn’t always available, but better usually is. Shoot for better and you’ll be in a better spot down the road.

[27:14] Amy Castro:
That’s great advice. Thank you so much.

[27:17] Joe Okaly:
One more thing. If this feels new or scary, you’re not alone. Most people tell me they feel like they should have known or done better. Financial literacy isn’t taught in school. Don’t be hard on yourself. Forgive yourself, and take a step forward today.

[27:56] Amy Castro:
That’s great. It’s good motivation to keep moving forward. Joe, thank you so much for spending the time. I appreciate the advice. I think it will reduce stress for listeners.

[28:25] Joe Okaly:
Of course, it was great to be here, Amy. Financial literacy is my mission. I want to help 100,000 families. I hope what I shared helps people on their journeys.

[28:43] Amy Castro:
Thank you. Joe, I know you’ve got a podcast and a lot of great information and resources. If people want to reach you, how can they do that?

[29:00] Joe Okaly:
My Enjoy More 30s podcast is available if you search Enjoy More 30s Finance. My book is The Financial Pinwheel, plus courses for those interested. I share tips on YouTube, LinkedIn, and Instagram. Any of those work.

[29:29] Amy Castro:
We’ll put the links in the show notes. At the end of the day, financial planning for your pets isn’t about being perfect with your money. It’s about being prepared. Whether that means tracking your real costs, setting up a small automatic transfer, or deciding how you’re going to handle bigger bills when they happen, a little planning goes a long way toward reducing stress and protecting both your wallet and your pets. If you found this helpful, share it with someone spiraling over pet expenses. And if you’ve already put some steps into action, join us in the Pet Parent Hotline Insiders Group on Facebook and share your tips.

Thanks for listening to the Pet Parent Hotline. If you enjoyed the show, don’t keep it to yourself. Text a friend right now with a link and tell them I’ve got a show you need to hear, then ask what they think. And remember, your pet’s best life starts with you living yours. Take good care of yourself this week and your pets.