Paying Board in Adavance: Good or Bad?

I currently began a doctorate program, and will be receiving a large lump sum from a loan I was approved for that will be used specifically for living expenses for the semester. I thought of the idea of paying for my horses board four or five months in advance, simply to have one less thing to pay every month and to have the peace of mind that his board is done and take care of my entire first semester. I have never done this before, and although I tried to do some research online on the pros and cons I really couldn’t find much.

Has anyone ever paid several months in advance for board, or have really any idea on if this is a good or bad idea?

From what I know of the last 15 years of boarding at various barns across the country, I think this is not in your best interest. Sometimes even at the best barns, things come up and if you had to leave, I wouldn’t necessarily assume the BO had kept your money on hand to be able to refund. I think it would reduce some bargaining power that you’d otherwise have in some respects as well. Of course, this is hard without backstory. If this is a barn you’ve been at happily for the last 10 years, maybe don’t take my advice. If you haven’t been there all that long, I wouldn’t do it.

Get a savings account at one of the major banks, such as Chase. Set up an automatic transfer to the checking account, then set up an automatic payment to the BO. My Chase account will let me pay any bill for free, I put in the address and amount and the date I want it there, and Chase will print and mail a check to the address.

I did exactly what you did while working on my PhD. I wouldn’t do it again because if there is a problem you’ll be amazed at how screwed you’ll be and how you’ll never get that money back.

I wouldn’t do it. If the boarding barn goes out of business, you may lose your money.

I did that once for a different reason and was sorry for it. One facility I boarded at had a minimum stay of six months and wanted post-dated cheques for that time on arrival. They explained it with having brood mares on the premises and not wanting a lot of turnover. Fair enough, the facility looked good and had everything I was looking for.
Turned out the bo was a total jerk, the main barn hand was an alcoholic and their dogs were chasing horses around the pasture.
Never again.

Set up a seperate bank account and auto pay monthly.

I would only do it if you had a long standing relationship with the barn owner and trusted them. I used to pay a years board in advance and in return got a discount. It was a win - win situation, I got a break in board and BO got a lump sum to help with any big purchases that needed to be made. I had been boarding with her since I was a kid though and knew that she could be trusted.

Do not pay board in advance.

I agree with do not pay in advance but question whether a loan for living expenses being used to pay board is a smart thing to do. Loans aren’t free money, less is more. Maybe lease the horse out until you can afford to pay for him with money you won’t be making payments on 20 years from now?

No - just pay on time as usual.

Bad.

[QUOTE=Laurierace;8837762]
I agree with do not pay in advance but question whether a loan for living expenses being used to pay board is a smart thing to do. Loans aren’t free money, less is more. Maybe lease the horse out until you can afford to pay for him with money you won’t be making payments on 20 years from now?[/QUOTE]

This.

I have employees in their 40’s whose wages are still being garnished for student loans they took out 20 years ago. Using student loans for unnecessary luxuries is a great way to make that happen.

Running up a $50,000 debt is super easy. Paying it off (plus interest)… not so much.

And no, I would never pay for board several months in advance. Too much can happen.

[QUOTE=Candle;8837663]
Get a savings account at one of the major banks, such as Chase. Set up an automatic transfer to the checking account, then set up an automatic payment to the BO. My Chase account will let me pay any bill for free, I put in the address and amount and the date I want it there, and Chase will print and mail a check to the address.[/QUOTE]

This. Best of both worlds - you know you have the funds, and it’s automatically taken care of.

I’ve often wondered the same thing, for the same reasons mentioned (discount + lump sum for BO to make capital improvements).

Auto pay and FIND A PART LESSOR.

The loan was for your living expenses to help support your Phd program. Not for boarding your horse. Your rent and food are also regular monthly expenses you have to worry about. Use the loan money for it’s intended purpose - YOUR Living expenses. Not horses.

I’d also agree. Don’t pay in advance. Stash the $$ in a bank and set up auto pay monthly.

Maybe don’t use Wells Fargo :lol:

[QUOTE=gottagrey;8837949]
The loan was for your living expenses to help support your Phd program. Not for boarding your horse. Your rent and food are also regular monthly expenses you have to worry about. Use the loan money for it’s intended purpose - YOUR Living expenses. Not horses.[/QUOTE]

If you are planning on using the loan to pay for your horse’s living expenses, I’d review the terms of the loan to if there is a penally for not using it for its intended purpose (although may be hard to actually identify which pocket your living expenses vs your horse’s living expenses came out of.)

[QUOTE=Laurierace;8837762]
I agree with do not pay in advance but question whether a loan for living expenses being used to pay board is a smart thing to do. Loans aren’t free money, less is more. Maybe lease the horse out until you can afford to pay for him with money you won’t be making payments on 20 years from now?[/QUOTE]

Thank you, everyone for the advice! In regards to cautioning over loan use, while I appreciate the advice it isn’t necessary. I have a strong understanding of academic loans, as I have paid for my own education in the past. I understand that whatever I borrow needs to be paid back, and have borrowed a very conservative amount (far less than what I was living on when I was working full time). I did so to ensure that my personal expenses were taken care of, while also being mindful to not take an insane amount that I don’t need. I see it as being no different than a mother or father requesting, and being approved, for a loan that will be used (in part) for day care expenses or even tuition for a private school (if their child attended one). Leasing is also not an option at this point in my horses life, as he is 27 and that is not something I am comfortable with.

It terms of the majority of the responses, it seems it is not a wise idea. Good to know! I am going to take the advice given and, instead, place it in my savings and set up auto-pay. Thanks everyone for your insight, seemed like a good idea on paper (hassle wise) however it’s obvious it doesn’t necessarily play out well. Thanks again!

[QUOTE=gottagrey;8837949]
The loan was for your living expenses to help support your Phd program. Not for boarding your horse. Your rent and food are also regular monthly expenses you have to worry about. Use the loan money for it’s intended purpose - YOUR Living expenses. Not horses.[/QUOTE]

AGREE

Do what you want , but the daycare analogy of being just like a parent - Granted you believe you will never find yourself in front of one -but if you were in front of a judge or bankruptcy having to give that as your reasoning for leniency - think very hard about what the response would be.

I also would think about fellow students who don’t get this kind of stipend and how they might react if they found out it went to board your horse - especially if they really do need it for living expenses. You may need to be careful that is never broadcast.

I think I just remember a bit too much of what I began to see going on regarding student loans before Wachovia had to become Chase.

[QUOTE=skyon;8838183]
AGREE

Do what you want , but the daycare analogy of being just like a parent - Granted you believe you will never find yourself in front of one -but if you were in front of a judge or bankruptcy having to give that as your reasoning for leniency - think very hard about what the response would be.

I also would think about fellow students who don’t get this kind of stipend and how they might react if they found out it went to board your horse - especially if they really do need it for living expenses. You may need to be careful that is never broadcast.

I think I just remember a bit too much of what I began to see going on regarding student loans before Wachovia had to become Chase.[/QUOTE]

This ^
Best not to co-mingle funds and the other issue at hand of course is what happens if something happens to your horse? How easy would it be to get the pre-paid board back from the barn? I wouldn’t want to have to worry about that.

Also - if this is a student loan, from a taxpayer perspective it doesn’t sit well to think the loan is being used for horse board. That’s right up there with the women who use their loan money to buy their new boyfriend of 3 weeks a new used car because his credit is no good and he said he’d pay back when he got his tax refund.