determining your budget for purchase price

[Gamma]

I figured out in very round, very pessimistic numbers what it would cost to get what I want, and that’s my goal “horse startup costs” budget. Then “just” save all your board/farrier/vet money every month until you’re comfortable with your savings left after you take out your horse shopping money. Hopefully actual costs are less than this, but if I get to this cap then I have to stop buying stuff and start saving again. (Actually I have the money right now, it’s the dread of horse bills that’s stopping me.)

My target is 15k, which works out like this:

• PPE: 3k but put in another 3k for failed PPEs on other prospects, etc. (I would rather spend the money when I can still walk away than find an ongoing cost later on.)
• Shipping home: 1k.
• Chiro and ulcergard after travel (not ongoing): 500.
• Saddle, saddle fitter, difficulties with same: 2k
• Tack, 2 blankets, halter, fly mask and boots, bridle, misc.: 1k.
• Travel costs for horse shopping: 500.
• Unforseen happenings: 1k.
• Safety vest: 500.
• Actual horse, buying off the track: 2.5k.

If I run under budget (would be nice), I have a list of nice to have things (clippers, bareback pad, etc.) and also the bottomless categories of “treats” and “training”… but I will probably try to restrain myself on that front unless I end up significantly under budget.

[NancyM]

How much can you afford to flush down the toilet?

[2DogsFarm]

@NancyM

How much can you afford to flush down the toilet?

:lol:
Or as another poster said “wad up & set fire to”

Can your savings convert to a Horse Care account?
Because purchase price is the least amount when compared to all costs long-term ownership accrues.

IIWM, I’d sit down with your trainer, outline your goals for the horse you want & let the Pro give you a ballpark number that should also include commission % in the case that Pro finds the horse for you OR approves purchase of one you find.

[Red_Barn]

@123chickadee

Oh and the other thing is, I have no kids and past that age, so I guess whatever I would spend on a child can go
towards my horse, right?

Right!

Words to live by!

:lol:

[cardinale]

Oh and the other thing is, I have no kids and past that age, so I guess whatever I would spend on a child can go
towards my horse, right?

And if the horse doesn’t work out, unlike a child you can SELL it!

[CM17]

@Gamma has a good formula for the start-up costs. The PPE is essential to know what you’re getting into. With any prospect, it’s critical not to get emotionally invested before the PPE, and to work with a vet who will let you know what they see at each stage of the exam. Years ago I worked with a vet who raised a yellow flag prior to images, then advised me to “stop” after one front foot. I found out later the trainer had drugged the horse. That vet may have burned business from that trainer, but he saved me a lot of money and grief! And do make sure you understand up front how your trainer is being compensated for any assistance provided.

[hillary_again]

Agree that @Gamma has a good budget. OP, definitely determine how you are paying your trainer for her help. If she’s looking at horses with you or sourcing for you, she needs to make some $ on the deal, just for her time.

[skydy]

@hillary again

Agree that @Gamma has a good budget. OP, definitely determine how you are paying your trainer for her help. If she’s looking at horses with you or sourcing for you, she needs to make some $ on the deal, just for her time.

OP, make sure to explain to your trainer that you will pay the purchase price of the horse directly to the seller, and you will pay your trainer separately for any commission/finders fee that you owe her. :yes: This is the best way to keep everything businesslike and above board.

[TheHunterKid90]

Keep in mind that the way a lot of horse sales work is the seller “pays” the buyers trainer. Meaning you pay $15,000 to the seller and she sends your trainer a check for $1500.

[pluvinel]

@TheHunterKid90

Keep in mind that the way a lot of horse sales work is the seller “pays” the buyers trainer. Meaning you pay $15,000 to the seller and she sends your trainer a check for $1500.

That is not necessarily always the case. The “commission” and how it will be paid is arrived thru discussion with a trainer.

I personally never pay a trainer to go see a horse with me.

I feel it is much more important to vet the seller than to vet the horse. My “vettings” are usually does it have a pulse, not deaf or blind. I feel confident that I can distinguish a horse that can W-T-C satisfactorily and generally buy horses that are not under saddle.

[clanter]

@TheHunterKid90

Keep in mind that the way a lot of horse sales work is the seller “pays” the buyers trainer. Meaning you pay $15,000 to the seller and she sends your trainer a check for $1500.

Might be why I never sold a horse as I would pay my trainer for representing me, the buyer if they used a representative could pay their own fees. There could be a relationship between the representatives whereas they agree to split a commission but as for the purchaser’s agent I would not have any obligation to pay them a dime.

[Xanthoria]

What do you want to do with the horse? Decide, in detail, the level of competition etc you want to hit. Decide on an age and height range, and breed if that’s important. Then go on all the horse shopping sites and find out how much that sort of horse will cost. That’s how much the price is.

Now look at your budget: how much money can you stomach spending? I could save up more and spend 80 grand on a horse but I think that for me, is ridiculous. Only you know what your budget is.

If the budget and the price match, away you go. If not, either save more money up so the budget is bigger, or decide what to compromise on (age, height, breed, competition level etc.) to bring the price down. It’s not usual for the budget to exceed the price IMEX but if so, lucky you

[Gamma]

Also you should really, really go back and calculate out your day-to-day horse expenses. Board is only a fraction of it. Don’t be afraid to be nosey and ask your friends how much they spend in your area, anyone who already has a horse also has a list of things they wish they had known first.

Any time someone tells me that wealthy people own horses, I correct them and say “formerly wealthy”.

[candyappy]

Depends on the money I have on hand. In years past when I was young I saved up and then purchased. As an older, married person with kids, I saved up and then purchased.

I spend what I have been able to squirrel away and no more. I have always had at least 2 horses so I am occupied while I save up the purchase price.

Some people make payments ( i never would), but if you are boarding it is probably best to pay for the horse in full. Your monthly expenses will be high enough.