Realistic Budget for Horse Ownership

[PandaBerry]

I’m in need of knowledgeable people to talk me down from the ledge (or hopefully to go for it )

I’m looking into getting back into horse ownership and I need a sounding board for if my budget is good enough. I’m very conservative with my finances usually so I’m not sure if I’m being overly cautious OR if my horse brain is taking over and I’m actually not financially ready.

For background, I was fortunate to ride and show from pre-teens to University with my own horse courtesy of my parents. Granted this was in a low cost of living area and we probably spent max $20k a year all in. Since then I’ve spent the about 7 years doing weekly lessons at an eventing barn and the last 3 years doing a half lease (2 rides a week + a weekly lesson) at a hunter/jumper barn.

Income wise I’m finally at a place where I think horse ownership is in reach again (even though prices have skyrocketed since I was a kid).

So here is my budget and my dilemma:
Currently I pay ~$700 a month for the half lease + lessons and this is comfortable within my budget. I have about $700 of “fun money” remaining after accounting for savings, mortgage, utilities (using the month expensive months only in my calculations), food, etc.

If I were to board it would cost me about $1,200 including lessons. With routine vet and farrier costs it would put me close to maxing out my budget. I have generous savings for incidentals/emergencies.

How I’m trying to rationalize this is if I get a solid citizen I could in turn half-lease out to reduce the costs and give me some more wiggle room. But this makes me nervous since then I’m dependent on finding a leaser, although there are a lot of kids/teens looking for rides at my barn as the schoolie string is winding down.

If it matters my budget for the horse itself would be high 4s or low 5s, sound, safe, over 6 yo, OTTB preferred. No big show aspirations, if I could bop around 2’6" I’d be happy. I’ve seen a few like this in my local market already so I know it’s possible.

So COTH forum, please give me your thoughts (and indulge or crush my delusions )

[endlessclimb]

If you affording it depends on you having a part leaser, I vote no. What happens if the horse has an injury that lends it useless for riding?

[PandaBerry]

You’re right, I hadn’t considered that aspect.

But regardless I know in my heart the answer is no, just needed to hear from an outside source

Maybe in a few more years

[widge]

If you’re currently half leasing, and considering buying to half lease out your owned horse, I think you’re making your situation worse. As the lessee you’re free from the obligations that come with ownership. It sounds like what you’re doing now is a good situation!

[oldernewbie]

Another thing you have to consider is the current economic environment. Your board may be $1200 a month now but it’s somewhat likely? very likely? that inflation is going to rear its ugly head in the next year or so. Add some drought like the last 2 years, no hay, and you could find your budget blown.

I agree that you should stick to leasing.

[Scribbler]

Like your own cost of living the huge variable is rent/mortgage/ boarding fees. These are very variable regionally and depend on the property or facility too.

I was very lucky to re-enter the horse world at a self board riding club where my basic horse care is currently about $500 CAN a month. That includes self board of $250/ month. A full board barn would be at least double that here

If I move on from here, I would be looking for a more pasture board situation on a private property.

You then need to have a cushion for vet and gear.

I would not take on a hobby that maxed out my discretionary income. I like having a big cushion. If your horse has all your discretionary income you are hooped if you have expenses in your non horse life. Like if your home insurance sky rockets or your transmission blows or etc

[luvmyhackney]

If in your position, I would continue to half lease.

[PandaBerry]

Thanks all for your input! I do have a good thing going at the moment and you’re right it would be a large step up in budget and responsibility and no increase in riding time if I end up half leasing the horse anyways.

[Demerara_Stables]

I think everyone else is correct that you’re probably too close to maxing out your budget at this point, and being reliant on a lessor is kind of scary.

BUT, is there opportunity for you to pick up work at the barn you ride at? I bought my first horse at 16 and paid $50(!!! 20+ years ago…) a month in self care board because I did barn chores everyday for the owner’s other 3 horses, plus provided my own grain and hay. Now I certainly wouldn’t be able to commit to that as an adult, but if you can pick up 2-3 days a week of feeding/cleaning/grooming, that might drastically reduce your board costs.

[dmveventer]

If you’re that close to being maxed out the answer is probably no. You need to have a cushion for cost increases that will almost certainly happen - board increase, specialized shoeing, medication, replacing tack/equipment, training rides, etc. There’s always something that pops up that you need, and that’s before you get to the wants. I wouldn’t want to buy a horse and then not be able to afford clinics, shows, some fun gear, etc, it’s just going to stress you out.

For context, I was paying about the same as you when I was half-leasing and our baseline board/lesson costs are similar. I budget more than double my half-lease each month now as an owner, not including shows and some extras. This includes saving for annual expenses like saddle fitting and sinking funds for vet, tack, etc each month. I have separate emergency savings I could tap for something major. I love owning and it’s totally worth it to me, but half-leasing is a WAY better deal financially.

Your purchase budget is also on the low side. Prices are softening a bit but I’d still be a little skeptical of what you’re getting in the high 4s range if you’re not looking for a project. You definitely won’t be getting a solid 2’6 citizen you could lease out to a kid for that price. A few more years of saving will give you a lot more options on that front.

[Annie10]

Realistic, budget, and horse ownership are 3 things that very rarely go together well. The best you can do is have some savings for a big veterinary situation and hope that you don’t need it.

[LakeEffect]

I think you’ve found your answer, and I’m inclined to agree. Also one of those that like a biiiig cushion (if I can’t afford it twice, it’s a no), BUT there are plenty of horse crazy individuals that make it work, one way or another. Depends on your comfort level and backup options.

[FjordBCRF]

@PandaBerry

Currently I pay ~$700 a month for the half lease + lessons and this is comfortable within my budget. I have about $700 of “fun money” remaining after accounting for savings, mortgage, utilities (using the month expensive months only in my calculations), food, etc.

Do you currently have a car payment? If you don’t, you’ll want to factor that in as it could easily eat a good chunk of your current disposable income. Unless you’re able to buy it cash!

I rode all my life and had two horses as a teen. I got into ownership again in 2020 and am paying close to double now just for board in the last 5 years . I’m only expecting things to increase. I was seriously considering a second horse a couple years back and that will have to wait until we have a place of our own.

[kaya842]

I agree with the others but will add - is being a horse owner or being at this barn more important to you? Some of the answer may depend on how comfortable you are DIYing/ going with less frequent lessons. I ask because there are barns in my area for most price ranges. My barn is pretty average price wise but there are definitely more expensive options for a bit more of a hands off approach (we don’t have a true groom, we have stable hands for example) and less expensive options farther out or with less amenities. Maybe there is a more affordable barn that would fit your needs? I would interview with and trial the barn with some lessons before basing a purchase on a move.

[quietann]

My general rule of thumb, assuming full board, is to take that amount and double it.

[4horses]

Can you afford self care board? Or do you need full board?

When I was in college, I paid about $200 to $250 per month for my horse to be boarded at someone’s house. Of course then you don’t get a fancy arena or anything but trails. No showing unless you paid someone for transport.

There probably are cheaper options out there.

[Alterration]

Provided you have a cushion for vet bills, horse ownership can be done for such a variety of dollar figures per month that it’s hard to answer the question.

If you want to stay at your current barn doing it like you’re doing it now, then no - you’re cutting it a little close.

But that’s just one way to enjoy horses. Depending on where you are in the country, board prices and discipline norms vary widely in price. Even moving to a barn further out from the metro from where you are can have a huge impact on your pocketbook. Board prices in the metro where I live hover around the $800-1200 mark but drive 45-50 minutes out and you can find board in the $350-400 mark.

If I really wanted a horse, I’d be flexible with those sorts of things. What I wouldn’t do is rely on the lease for comfort. Leasing your horse out, IMO, is an exercise in patience and stress. Good lessors can be difficult to find.

Just some food for thought!

[steelerino]

I technically never could afford my horses but I struggled a little, lived in an RV, never had a brand new car and did it anyway. Being perpetually horse poor motivated me to get better jobs and promotions to make more money. That being said mine is now retired at a very affordable place and I won’t ever buy another. Since he’s been gone I found out I actually made a decent living after all it was him who was bringing me down

[chocolate_chip_in]

Half leasing makes more sense financially. Personally, I said F it and bought the horse anyway, even though it was not the smartest decision financially and like you, I’ve always been conservative with money. It’s been a big financial adjustment but I’ve been making it work so far.

However, I will say…I came in with a fully funded emergency fund, a budget where every dollar is accounted for, am on track for retirement savings, already owned a house, had bought a reliable new car within the last two years (after my 2006 clunker bit the dust lol), and have a reliably employed spouse. If any of those things had been different, I would have stuck to leasing.

[FjordBCRF]

@chocolate_chip_in

However, I will say…I came in with a fully funded emergency fund, a budget where every dollar is accounted for, am on track for retirement savings, already owned a house, had bought a reliable new car within the last two years (after my 2006 clunker bit the dust lol), and have a reliably employed spouse. If any of those things had been different, I would have stuck to leasing.

This is a really good point. When I bought my horse in 2020, I was on my own. I met DH 6 months after getting DHorse in July of 2020 Car was outright owned and I was a homeowner at that time living by myself after getting divorced in 2018, I also had my 401K and HSA maxed as well. I did end up selling my home way above listing in October of 2020 so I had a great cushion and was renting on site at the barn in a cool cottage on the trail system.

Had I not met DH, I might have been looking for a roommate to help offset the rises in nearly everything over the past couple years. Having DH to split all of our non horse living expenses is what’s allowing me a more cushy horse budget.