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Developing a budget for new horse

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  • Developing a budget for new horse

    I'm in the process of saving up for a new horse after putting my mare down this spring.

    I know it'll be a while before I enough money to start shopping, but I'd like to figure out how much I need to have saved up.

    I want to factor in costs for the vet check (I plan to do a *very* thorough one), shipping expenses, etc.

    How much 'extra' money would you suggest having saved up? I'm thinking I'd like to have 6 months worth of expenses saved (i.e. board, farrier, basic vet, etc) in addition to a couple thousand for emergency vet bills.

    I shouldn't need much new gear, I have all the blankets and things of that nature. Though it's certainly possible I'll either need new saddles or to have mine adjusted.

    Any thoughts on how much I should be aiming to have saved up in addition to the actual purchase price of the horse?
    Cascadia- OTTB mare. 04/04-05/10
    If love could have saved you, you would have lived forever

  • #2
    I think it really depends on where you live. It depends on what your discipline is, and whether you want a made horse of a greenie. You would have to many give more details. Based on the picture of your mare, you could get another OTTB for nothing or close to it.

    Also, if you have to save up to pay vet bills, then maybe a horse is outside your budget, although it never hurts to have extra cash on hand. And I would factor in the cost of insurance to your budget.
    2012 goal: learn to ride like a Barn Rat

    A helmet saved my life.

    Comment


    • #3
      No matter how much you save up, someone is going to tell you it isn't enough and you can't afford a horse. And someone else will chime in and say that they have six jobs and have to walk to them all uphill in blinding snowstorms because they can't afford gas for their car, but they are able to keep their horse through thick and thin and frostbite, so you'll be just fine.

      Most recommendations I've seen are to have the equivalent of 6-12 months of all expenses (yours, pets', etc). In this economy, it's better to be more conservative than not.

      As far as purchasing expenses --

      Your local vet can give you an estimate on PPE costs with the options you want.

      You can get a rough estimate of shipping costs by checking local trainer websites, because they sometimes list their hauling rates. This will give you an idea of the going local rate, even if you don't plan to use those trainers.

      You might be able to use your existing equipment, but maybe not. Figure out what it would cost to replace the essentials if you ended up with a horse that the blankets/etc didn't fit -- that way, you'll know your budget with and without buying new tack.
      She Gets Lost

      Comment


      • #4
        Originally posted by HappyVagrant View Post
        No matter how much you save up, someone is going to tell you it isn't enough and you can't afford a horse. And someone else will chime in and say that they have six jobs and have to walk to them all uphill in blinding snowstorms because they can't afford gas for their car, but they are able to keep their horse through thick and thin and frostbite, so you'll be just fine.
        And that's the truth
        I wasn't always a Smurf
        Penmerryl's Sophie RIDSH
        "I ain't as good as I once was but I'm as good once as I ever was"
        The ignore list is my friend. It takes 2 to argue.

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        • #5
          I'm sorry about your mare.

          What was your budget with your last horse? That should be the best determinant of what you will need for your new horse for day-to-day expenses.

          Regarding vetting. If you are doing all of the x-rays etc, expect to pay between $650 and $1000 depending on what you do and where you live.

          Horse prices are low right now, you should be able to find a deal. I would start looking now for a horse and if one that you liked happened to match what you have in the bank, go for it.

          Good luck.

          Comment


          • #6
            Originally posted by Lone View Post
            I'm in the process of saving up for a new horse after putting my mare down this spring.

            I know it'll be a while before I enough money to start shopping, but I'd like to figure out how much I need to have saved up.

            I want to factor in costs for the vet check (I plan to do a *very* thorough one), shipping expenses, etc.

            How much 'extra' money would you suggest having saved up? I'm thinking I'd like to have 6 months worth of expenses saved (i.e. board, farrier, basic vet, etc) in addition to a couple thousand for emergency vet bills.

            I shouldn't need much new gear, I have all the blankets and things of that nature. Though it's certainly possible I'll either need new saddles or to have mine adjusted.

            Any thoughts on how much I should be aiming to have saved up in addition to the actual purchase price of the horse?
            I wish everyone thought so carefully! (Oh, but by the way, karma will make sure your next horse wears a very different size of blanket! "The best laid plans of mice and men....")

            I'd start with the 6 months of regular expenses. Then I'd start looking around for "comps"-- horses that were similar to one I might want-- and looking at price ranges and locations. *Then* I'd have a better idea about how much I need to set aside for purchase, shipping and PPE.

            One other piece of research (and soul searching) you can do now is about major medical insurance. Do you want to have (but pay for) the ability to make diagnostic and treatment decision without regard to cost? Or will the price of your horse, its age, and your willingness to keep one that can't do a job mean that an insurance premium every year is an unnecessary expense?
            The armchair saddler
            Politically Pro-Cat

            Comment


            • #7
              Originally posted by mvp View Post
              (Oh, but by the way, karma will make sure your next horse wears a very different size of blanket! "The best laid plans of mice and men....")
              I am living proof of this... AND, the new horse was between sizes (but not the first horse's size) so I spent about a million dollars shipping blankets back to places I ordered them from...


              I think if you have 6 months of expenses set aside you will be doing better than most of us...

              Comment


              • #8
                Sounds like you will need about $15,000.00 saved over and above the cost of the horse.

                Kudos if you can do it; I don't have anywhere near 6 months horse expenses + "couple thousand" for vet saved.
                Jigga:
                Why must you chastise my brilliant idea with facts and logic? **picks up toys (and wine) and goes home**

                Comment


                • #9
                  Originally posted by TheHorseProblem View Post
                  I think it really depends on where you live. It depends on what your discipline is, and whether you want a made horse of a greenie. You would have to many give more details. Based on the picture of your mare, you could get another OTTB for nothing or close to it.

                  Also, if you have to save up to pay vet bills, then maybe a horse is outside your budget, although it never hurts to have extra cash on hand. And I would factor in the cost of insurance to your budget.
                  This post makes no sense. Especially when someone is saying they want to set money aside for unexpected vet bills, and you are saying that means a horse is outside of the budget? Wow.
                  Jigga:
                  Why must you chastise my brilliant idea with facts and logic? **picks up toys (and wine) and goes home**

                  Comment


                  • #10
                    HP is probably seeing it as needs to save for routine and affordable care: ie shots, farrier, teeth, and minor health issues. I think the OP means saving for extensive diagnostics and big emergencies ie colic surgery.

                    Like someone else said, I would look into insurance. I don't have it on any of mine but wish I had, my mares uveitis and my other horse's lameness last year were costly.

                    I think a big part of what you need to figure out is how much you would be willing to spend if a horse got ill. Some would spend 10000 others would be 1500. For instance, I would be unlikely to do colic surgery. Unless I had insurance.

                    Just as important than the savings is ensuring that having a horse fits into your normal budget without you making crazy sacrifices.

                    Comment


                    • #11
                      I've always doubled the horse's price as far as budgets go to a point. When I shop I normally shop in the 10-15k price range and therefore save up 20 - 30k that will cover (hopefully) PPE, Training if needed, shipping, basic care & boarding. I always have about 5k for extra vet expenses saved up and I do carry insurance on the horse. Now for the OTTB you got free? He/She needs 10-15k budget for training, vet care, PPE (Always get one.) and farrier to get those feet half way decent. This formula has served me well in the past and it was a formula that all the horsey folks in the family have lived by for YEARS!
                      Adoring fan of A Fine Romance
                      Originally Posted by alicen:
                      What serious breeder would think that a horse at that performance level is push button? Even so, that's still a lot of buttons to push.

                      Comment


                      • #12
                        Wow. I never saved up months worth of board or expenses or anything like that. In fact I think I have only met one person who has! (more power to ya if you can!! I cant!)

                        I pay as I go for training/board. Making payments on my next horse too. Of course, I was looking for a lease and stumbled across a nice purchase instead (did not have the funds to buy outright).

                        Comment


                        • #13
                          I would save up 6 months worth of board as a cushion. You could use that savings for unexpected vet bills and to help float yourself is you lost some income. If you end up using it for something, make sure you replenish it as soon as you can.

                          I did this and (thankfully) while I never had to use it, it was really comforting to know it was there just in case.

                          Comment


                          • #14
                            Originally posted by saultgirl View Post
                            This post makes no sense. Especially when someone is saying they want to set money aside for unexpected vet bills, and you are saying that means a horse is outside of the budget? Wow.
                            I recently had a horse cut himself on a fence. It developed into cellulitis quickly. He was in pasture when it happened, and as I had just moved him there, I didn't know the people. Plus, they would charge me extra every time they had to doctor him up.

                            So:
                            emergency vet call $400
                            trailering to my home barn the next day $125
                            vet exam and re-wrap $90
                            additional meds $35

                            So in a week, that was around $650, and that was just from a cut.

                            If your income doesn't allow for emergencies like that, you can max out a credit card really fast, and last I heard, they were charging 16% and up interest.

                            All I am saying is that leasing might be a better option than buying if little stuff like that can wreck your budget. Yes, of course, it's great to have some savings for such emergencies. But it's hard to save up for a money pit, and you never know with horses.
                            2012 goal: learn to ride like a Barn Rat

                            A helmet saved my life.

                            Comment


                            • #15
                              Originally posted by TheHorseProblem View Post
                              I recently had a horse cut himself on a fence. It developed into cellulitis quickly. He was in pasture when it happened, and as I had just moved him there, I didn't know the people. Plus, they would charge me extra every time they had to doctor him up.

                              So:
                              emergency vet call $400
                              trailering to my home barn the next day $125
                              vet exam and re-wrap $90
                              additional meds $35

                              So in a week, that was around $650, and that was just from a cut.

                              If your income doesn't allow for emergencies like that, you can max out a credit card really fast, and last I heard, they were charging 16% and up interest.

                              All I am saying is that leasing might be a better option than buying if little stuff like that can wreck your budget. Yes, of course, it's great to have some savings for such emergencies. But it's hard to save up for a money pit, and you never know with horses.
                              Ok, I don't really see $650 as a huge vet bill, and the OP talked about putting a couple thousand aside for vet emergencies. If you have enough money sitting around at any one time to immediately cover a bigger vet bill (let's say $3500-5000) I would suggest you look at ways to better invest your funds!

                              Leasing, IMO, is the biggest money pit, since you are putting $$ and mileage (not to mention emotional attachment) into someone else's horse, and you are guaranteed to end up with nothing.
                              Jigga:
                              Why must you chastise my brilliant idea with facts and logic? **picks up toys (and wine) and goes home**

                              Comment


                              • #16
                                Originally posted by saultgirl View Post
                                Ok, I don't really see $650 as a huge vet bill, and the OP talked about putting a couple thousand aside for vet emergencies. If you have enough money sitting around at any one time to immediately cover a bigger vet bill (let's say $3500-5000) I would suggest you look at ways to better invest your funds!

                                Leasing, IMO, is the biggest money pit, since you are putting $$ and mileage (not to mention emotional attachment) into someone else's horse, and you are guaranteed to end up with nothing.
                                I am talking about a feed lease, not the typical 1/3 of the sale price medals horse lease.

                                There are huge advantages to leasing, for someone who has limited resources. What you call ending up with nothing, to me means ending up with the ability to move on rather than support a lame or aged horse in retirement.
                                2012 goal: learn to ride like a Barn Rat

                                A helmet saved my life.

                                Comment

                                • Original Poster

                                  #17
                                  Thanks for the advice everyone.

                                  After talking with my parents, it sounds like they may be more willing to help out with finances than I'd originally expected. With that in mind I'm going to start shopping, knowing my parents can help out if something unexpected happens. I already have some money saved up to cover unexpected costs. I'm guessing it'll take some time for the right horse to come along that's in my budget, so I'll keep putting away as much as possible.

                                  I hate living on a month-to-month basis, it really stresses me out. As a grad student I know my situation could change, so I want to make sure I'm as prepared as I can be! I know some people probably think it's overkill, but after my last mare I saw how quickly things could head south and how expensive it could be. I would hate to be in the position where I had to give up early without fully exploring all our reasonable options.

                                  I'm definitely looking into some kind of basic insurance for the next horse. I think I'd like to get at least major medical/mortality. My understanding is that since the purchase price of the horse will be pretty low my premium should be low too.

                                  Thanks again for all the advice, I really appreciate it!
                                  Cascadia- OTTB mare. 04/04-05/10
                                  If love could have saved you, you would have lived forever

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