Leasing vs saving for future horse

[fivestrideline]

No way am I taking out a loan for a horse at this juncture. And I don’t have a ton of credit - my parents don’t believe in credit scores, they do cash for everything, and therefore I had ZERO credit until I co-signed a credit card with my SO last year. I’m paying down that card (life happened, we had to put more on than we wanted), my trailer, and working on getting my $3k of student debt forgiven.

We won’t be buying a house cash, but we make decent money. We just have been figuring things out, moved across the country twice, and have had expensive repairs on all our vehicles recently (thank heavens for a mechanic SO). Combine that with record high rent/groceries/gas, and you can see why I’m waffling around trying to make good choices. What I could afford and be comfortable 5 years ago is just not happening

[lenapesadie]

In addition to DTI determining purchase power, as of the first of this month higher DTI is garnering a higher interest rate on mortgages with LTV over 60%. Signed a mortgage loan officer.

[mika0116]

Gurlll, you’re gonna be just fine if you only have $3k worth of student debt, etc. Here in my CA city & back in my other major East Coast city, my peers have HUNDREDS of thousands of student debt (law school, med school, Top 10 MBA, etc). Some of them paid that ish off once they got a higher income job in Big Law or Private Equity / Tech / post residency and fellowship very quickly before a house purchase.

You can do it - (have a house and a horse if you stay the course, not show, lesson, and increase your income) you really can!

Lesson for sanity - you can do a lot jumping 2’6 and below technical courses and not showing.

I hear you on the 5 years ago conversation. I won’t throw numbers around but my husband and I make formerly “STUPID” money. Now in Bay Area/NYC/Ritzy SoCal terms we do well - but if we had 2 kids, we would have to make some serious decisions… and IMO wouldn’t be able to live sufficiently to provide for ourselves and 2 kids, and enjoy life at all.

There is a stat out there that 5 -10 years ago an individual in a major coastal city (NYC, LA, SF, etc.) could retire on $1.5 million - that same level of living now requires $3.5 million. It… sucks. Based on the breakdown of cost of life 8 years ago I could have retired at 40 - I’ve learned recently to let that go.

[CHT]

You need to find someone like me who will mentor/teach you in exchange for exercising some non-fancy horses!

I teach a lot of “re-riders” and taking a short break will hit your muscles, but not your muscle memory! You will be sore and frustrated for the first few rides back, but it won’t take very long to get back at it, so taking a break to get financially ahead might be a good option.

That aside, if your horse would be suitable, consider leasing him to an Equine Assisted Therapy or Equine Assisted Learning program. They are SUPER popular where I live, and often looking for “free” horses.

Given your age, I would also consider putting down your NQR horse. I am guessing he isn’t old, and is pasture sound, but I think it is ok to put yourself and your needs first. Yes, I get this is not a popular opinion, but your horse doesn’t have future plans…you do. (this is of course a very personal decision, but I think people should feel that this is a valid and OK decision to make, and I would support someone making this choice 100%)

[Long_Time_Lurker]

I also think that lessoning once a week and saving the rest of your horse money is the best compromise for now.

I will throw out another idea. You could earn some extra money in a horse-related way using some of the hours you have been spending riding, without having to make a career change. You could scratch the show itch a little bit and earn instead of spend if you could spend a weekend a month at a big show as a braider (or a show groom, but braiders usually make more $$$). Since you have a trailer, you can earn quite a bit of money hauling for others, to shows or for veterinary emergencies, etc. You will need proper insurance and to get the word out, but you should be able to earn at least enough to cover your trailer payment and insurance with some left for your horse fund. There are probably other possibilities, but these are two that you can do without losing your amateur status.

[AskMyAccountant.17]

Actually, I have an LLC that I created years ago when I taught a few lessons in college w/ its own EIN. There’s a little activity in it every year from some social media work that I do now, so the actual loan is a business loan through the LLC. This was a much better rate than a general personal loan. Interestingly enough, the Loan doesn’t show up on my personal credit report because it is not associated with my SSN. (This could be detrimental if you aren’t aware of your finances, as I could theoretically be approved for a loan on my SSN that I couldn’t afford. But, I’m not taking out another loan)

I don’t think it’s something we should be shouting from the rooftops, but it could happen. I did it, and I don’t have too much regret that I’m paying a little more for my horse over a bit of time than putting the cash in an account each month and waiting. Now, do I have a SO or other priorities, no. It’s just an option.

[mika0116]

Yeah let’s not drag people into the intricacies of LLCs (I have 2) and how one can use / exploit them for various purposes… good on you for finding something that works super well for your situation!

it does get more complicated now that I am married with them as it changes the structure of LLCs in my state (not both Limited Partners - converts to single owner) - we joke that we will eventually have to divorce on paper for tax reasons

[ElementFarm]

I admit I’ve not read all the responses, so I’m likely repeating what other posters have said. But for me, not riding at all would be my last choice, even if the delayed gratification meant a super nice horse in my future. Carpe Diem and all that, but you don’t know if you’ll have some health issues, get hit by a car, have to deal with a sick/high-maintenance family member/start a family, or any other of the 10,000 things that could derail your ‘plan’ and prevent you from getting to buy/ride that amazing unicorn in 5 years.

And even if you do get that amazing horse in a few years, without maintaining riding fitness and your eye for distances, you might not be able to do that horse justice.
Or, even if all that goes according to plan, and the first month you own that expensive Dream Horse, it trips in turnout and does a suspensory or DDFT.

I’m in a job that no one picks to make them rich. It also involves frequent travel or moves to places where riding isn’t an option, so I’ve had periods of time where I wasn’t able to ride much or at all. So I understand where you’re coming from and I’ve been there. It’s tough to not be able to pursue the show dreams you have and feel stagnant and unfulfilled in your riding in general, and even worse when you’re dragging along a retiree or NQR horse that saps all your fun money.

Chronically NQR horse is an anchor. Is he sound enough to free lease as a trail horse or LL mount? If not, or if he’s too quirky for that, can you find him a less expensive pasture-board situation?

Saving up for a farm of your own will let you cut costs on keeping your NQR horse as well as board on any/all future horses. That’s the time to find a baby/young prospect. Once you’re not paying full board, and only costs, is when getting the yearling makes sense… it’s like buying on layaway: it takes a while to get that fancy 4yo, but it spreads out the costs over several years. But it sounds like a horse property of your own is still a ways down the road. It’s not worth paying full board on a young one that you can’t even ride yet.

Are there any barns closer to you? A half lease and schooling shows is probably the choice (of your three) I’d pick to stick with, but your barn is pretty far away, and that takes a lot of gas and mental energy. Honestly, I’d likely skip the schooling shows and instead try to pick up a cheap or free full lease on a horse I could keep closer to home. Riding is my happy place, and while showing is fun, that’s something I can skip for a year or three, as long as I’m getting saddle time and feeling like I’m improving, or at least maintaining. Maybe balance it out with a once-a-year show lease at a nicer (e.g. FL) venue for a week to scratch the show-itch. There are some fun “things” you can do that may fill the gap that showing leaves. For me it’s foxhunting. For the price of 2-3 shows I can hunt for a full season and it’s a great welcoming community. My riding is better and stronger than ever, and when I have a horse that I can return to the show ring with, I think all the galloping cross country and jumping over varied terrain will only have helped me. Maybe you can find some similar niche, whether that’s dressage lessons, or whatever, even if it’s not competing in the medals/jumpers.

But BL, you have no idea what tomorrow will bring, so I wouldn’t put all your dreams on hold to save for them. I’d do whatever you can to continue to ride now, while slowly still building savings and skills for those future dreams.

[fivestrideline]

These are all good points. Horsey is going on retirement board at a fantastic place that takes great care of the horses, and I’ll readdress his level of soundness in a few months - a year. It’ll save me a few pennies, but the cost is worth it to be completely sure he’s safe and cared for.

As far as closer, yes there are some barns closer, but they’re out of my price range (even for a care lease) with the “required” training/lessons/grooming etc. Not to mention that type of “program” isn’t really my thing. They take haul ins, which was my plan if I got something rideable.

I’ve put some heavy consideration into my goals - I’d do a lease on a schoolmaster at a really good trainer’s barn closer to home, if I could find it. But ultimately I’m wanting to do things that can’t be accomplished in a typical lease (haul to different trainers, trail ride, show even if trainer isn’t going, etc). Lessons will have to do, in the meantime.

[scheyennet]

I work 50-60 hrs/week for a business I partially own. My trainer is 2+ hours drive from me, one way. I imported a green wb, put him in training with her and rode once a week! If I had a multi-day show, then whoopee, I rode twice a week that week! I went from green horse and green rider (I started long stirrup) to the Modified Jr/Ams (and winning) in less than 4 years! If I didn’t have a green horse, we probably could have done it faster, but it worked and it was a fun journey! You have to be disciplined and focused. There is no whining, no complaining and no I can’t do that! When at shows, I watched rounds all the time to see what they were doing and learn from them, either what to do or what not to do. My point is, don’t think you can’t get anywhere only riding once a week.