5 Handy Financial Planning Tips for Owners of Pets

5 Handy Financial Planning Tips for Owners of Pets There is nothing more satisfying and reassuring than having a companion who cares for you unconditionally, who understands your pain without you having to explain. Owning a pet ensures that you always have a friend who never judges you for who you are. Likewise, although a major responsibility, caring for a pet can be immensely enriching and rewarding. Establishing a secure existence for your pet not only includes providing timely care and being sensitive to its immediate needs but also ensuring long-term financial stability. Your pet needs the right financial support to alleviate potential risks resulting from unexpected situations like a medical emergency. So, here are some tips on financial planning for individuals owning pets: 1. Dedicate a Portion of Your Emergency Funds Towards Your Pet While you may provide the best care and amenities for your pet, one can never totally eliminate the possibility of an emergency. Consequently, allocating a fixed amount of your emergency funds towards pet care is the first step to financial security during such a crisis. It is a good idea to finalize a specific percentage of your emergency funding amount that you may want to set aside for your pet every month. You could then select a relatively liquid investment avenue such as an FD, RD or savings account and park the emergency funds in the same. Thus, even during unexpected financial requirements, you may withdraw from the account with minimal or no penalty. It is a good idea to consult investment experts and online stock brokers in India to understand your investment options in terms of your emergency funds. 2. Purchase a Pet Insurance Cover Having an insurance cover helps you to reimburse any expenses incurred during unexpected situations. A pet insurance cover financially compensates you when you need to spend your funds on a pet emergency. The Pet Insurance Policy in India is a comprehensive insurance cover that helps you reimburse major veterinary and other health-related expenditures you may have to incur in such scenarios. Approved by the Insurance Regulatory and Development Authority (IRDA), this scheme consists of a wide range of insurance plans for different animals. Some of these plans include dog insurance, cattle insurance, cat insurance etc. 3. Invest in Long-Term Securities Via a Systematic Investment Plan

Long-term investment avenues alongside the liquid investment funds help to secure your pet’s future. Consider investing in lucrative but low-risk long-term schemes such as NCDs, mixed mutual funds investments, long-term debt securities etc. Try to invest in at least one avenue with your main investment objective being to grow money for your pet. Moreover, investing in these avenues through an SIP investment plan ensures that you systematically deposit specific amounts of money in the scheme at fixed intervals while also not compromising on your present expenses. 4. Engage in Estate Planning for Your Pet The unpredictability of life warrants that you plan your estate for your pet and specify the details clearly. Start by earmarking a legal guardian who would care for your pet in the event of your demise or incapacitation. It is essential to discuss your will and decision in detail with this person and ensure that s/he is willing to take up this responsibility, being absolutely aware of what it entails. Since writing a will is a major decision, it helps to think it through and discuss about the same with your loved ones before plunging in. One may also set up a trust for your pet, allocating specific amounts towards pet care and describing how the pet should be looked after. One may enter the names of one or more trustees to manage the trust funds. Conclusion Formulating finance and investment plans for your pet is a significant aspect of caring for your pet. Leveraging the right strategies and seeking help when required can ensure that you and your pet lead a secure and comfortable existence. Are you a pet owner looking for some guidance and assistance while planning the finances for your animal friend? We are here to help you throughout your endeavour. Click here to know more!