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 Extreme Veteran
Posts: 456
 
Location: SW MO | I read an interesting comment in the "What do you expect for 10k" thread, and I want to pick your brains. If you had the cash to buy a 15, 20, 25k horse- would you pay cash and go on? Or would you finance it (if you could at a low interest rate) so that you could put a large payment down and keep some funds in your hand for the off chance emergency?
I am asking this because I am in this position currently. Previously, I never considered financing. However, I see the value of keeping some money to make sure that I have it if an emergency comes up. Opinions? TIA |
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 Guys Just Wanna Have Fun
Posts: 5530
 
Location: OH | For me---I have never went to the bank to borrow money to support a hobby, but that is just me. Doesn't mean I am right. |
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 Too Skinny
Posts: 8009
 
Location: LA Lower Alabama | If you are that far saved up, whats a little more time to save up for the emergencies too? Good insurance is a must when spending that type of money on a fragile item too. |
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Extreme Veteran
Posts: 456
Location: SW MO | cowgalsissy - 2017-09-08 8:24 AM
If you are that far saved up, whats a little more time to save up for the emergencies too? Good insurance is a must when spending that type of money on a fragile item too.
Agreed- I haven't even looked at any horses yet. I have nothing but time! I am saving about $400 a week so a few more weeks wouldn't hurt at all. |
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 Shelter Dog Lover
Posts: 10277
| Mighty Broke - 2017-09-08 8:21 AM For me---I have never went to the bank to borrow money to support a hobby, but that is just me. Doesn't mean I am right.
This^^. I personally don't think the stress of worrying about how you are going to make it all work if you hit a few bumps in the road is worth it.
Good for you for starting to save each week. That is a good chunk of change and will add up fast. |
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Extreme Veteran
Posts: 456
Location: SW MO | So far it has. I am really lucky (but also very strict!) to save this much. This is the first "big" horse purchase for me, I've bought a lot in the past but I haven't spent over 5k so far. |
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 Expert
Posts: 3815
Location: The best kept secret in TX | If you are saving this much a week, continue saving for emergencies.
Get good insurance as well.
Your $400/week will easily pay for good insurance.  |
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 Take a Picture
Posts: 12842
| IRunOnFaith - 2017-09-08 9:04 AM
If you are saving this much a week, continue saving for emergencies.
Get good insurance as well.
Your $400/week will easily pay for good insurance.
You better continue to save the $400 a week because after you get the horse a lot of that will be Gone Baby Gone. |
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Industrial Srength Barrel Racer
Posts: 7268
| I took a loan out against my paid for truck and it was probably the dumbest thing I have ever done - but that's just me. It wasn't a huge amount but still. |
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Go Get Em!
Posts: 13503
Location: OH. IO | Mighty Broke - 2017-09-08 9:21 AM
For me---I have never went to the bank to borrow money to support a hobby, but that is just me. Doesn't mean I am right.
This for us too |
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 Expert
Posts: 2457
| Mighty Broke - 2017-09-08 8:21 AM
For me---I have never went to the bank to borrow money to support a hobby, but that is just me. Doesn't mean I am right.
THIS ^^^^
Pay cash whenever possible for anything. |
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Extreme Veteran
Posts: 502
Location: United States | Pay cash and be done with it. Insure that horse and have fun running! |
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 Three in a Bikini
Posts: 2035
| My rule:
Always pay cash for anything that is breathing. |
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 Expert
Posts: 1523
Location: Illinois | I posted on the other thread that I took out a loan, due to the timing. One I couldn't pass up came along and I had funds in the bank, just in CD's. So I took out a small secured personal loan so I wouldn't have to pay the early withdrawal penalty on the CD. I bought the horse and paid back the loan in full in 3 months once a CD came due. It was a CD that was invested as a future horse fund. I think I paid $20 interest on the loan and to pull the CD out I would have had over $100 in penalties. So mine was fairly well thought out & I still had my readily available savings in case of emergencies or anything. I wouldn't take a loan out against anything major or put myself in potential financial stress to buy a horse. My loan was under $2K so it wasn't a major loan either. I would just keep saving up your funds and avoid the loan process, especially if you're able to save that much money towards a horse. |
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 Elite Veteran
Posts: 889
Location: on the fine line between insanity and geniusness | I have a different spin on it... since you've been saving that $400 a week anyway- put what you have saved in a savings account or a CD, borrow against it and keep using that money you're saving as a payment. That way that money you saved will accrue interest, though probably not much, but you will still have it when your horse is paid for. And since you are borrowing against your own money you won't need anything else for collateral. If you jump up and spend everything you've saved on a horse you have no cushion for emergencies! This is how I set most of my stuff up, against my own money. Lower interest rates (its usually 1% above what your cd is paying) and you don't ever get in a bind, because if something horrible happens- you can always turn your own money over to pay the note without it effecting your credit!
You may already know all of this! But I just thought I'd give you a different view point on it!! |
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Extreme Veteran
Posts: 456
Location: SW MO | Ashley Lynn - 2017-09-08 4:20 PM
I have a different spin on it... since you've been saving that $400 a week anyway- put what you have saved in a savings account or a CD, borrow against it and keep using that money you're saving as a payment. That way that money you saved will accrue interest, though probably not much, but you will still have it when your horse is paid for. And since you are borrowing against your own money you won't need anything else for collateral. If you jump up and spend everything you've saved on a horse you have no cushion for emergencies! This is how I set most of my stuff up, against my own money. Lower interest rates (its usually 1% above what your cd is paying) and you don't ever get in a bind, because if something horrible happens- you can always turn your own money over to pay the note without it effecting your credit!
You may already know all of this! But I just thought I'd give you a different view point on it!!
I just made this post because I think it's just interesting to see how people do it. I'm a person who likes to have money in my hand because you just never know. Thanks for all the responses! |
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Shelter Dog Lover
Posts: 10277
| Mzbradford - 2017-09-09 8:25 AM Ashley Lynn - 2017-09-08 4:20 PM I have a different spin on it... since you've been saving that $400 a week anyway- put what you have saved in a savings account or a CD, borrow against it and keep using that money you're saving as a payment. That way that money you saved will accrue interest, though probably not much, but you will still have it when your horse is paid for. And since you are borrowing against your own money you won't need anything else for collateral. If you jump up and spend everything you've saved on a horse you have no cushion for emergencies! This is how I set most of my stuff up, against my own money. Lower interest rates (its usually 1% above what your cd is paying) and you don't ever get in a bind, because if something horrible happens- you can always turn your own money over to pay the note without it effecting your credit! You may already know all of this! But I just thought I'd give you a different view point on it!! I just made this post because I think it's just interesting to see how people do it. I'm a person who likes to have money in my hand because you just never know. Thanks for all the responses!
Just yesterday I thought of this post when my husband's sister called to ask to borrow some money. Her husband got a job transfer, the move will be paid for but will be reimbursed, not paid for upfront. They live in a 575K house, nice cars, 2 kids in lots of extracurricular activities but not a penny in savings, what I call "rich poor" and literally just one bump away from it all falling apart. It is just crazy. |
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Extreme Veteran
Posts: 456
Location: SW MO | rodeomom3 - 2017-09-09 9:23 AM
Mzbradford - 2017-09-09 8:25 AM Ashley Lynn - 2017-09-08 4:20 PM I have a different spin on it... since you've been saving that $400 a week anyway- put what you have saved in a savings account or a CD, borrow against it and keep using that money you're saving as a payment. That way that money you saved will accrue interest, though probably not much, but you will still have it when your horse is paid for. And since you are borrowing against your own money you won't need anything else for collateral. If you jump up and spend everything you've saved on a horse you have no cushion for emergencies! This is how I set most of my stuff up, against my own money. Lower interest rates (its usually 1% above what your cd is paying) and you don't ever get in a bind, because if something horrible happens- you can always turn your own money over to pay the note without it effecting your credit! You may already know all of this! But I just thought I'd give you a different view point on it!! I just made this post because I think it's just interesting to see how people do it. I'm a person who likes to have money in my hand because you just never know. Thanks for all the responses!
I am far from that. I have zero debt currently (not saying I haven't before). My vehicles and trailer are paid for. I just know that there are different ways to get to a goal- whether it is spending big money on a horse or not. I know that not every person pays cash for a 25k horse, similar to how people do not do that when they buy a new car or truck. I was just curious. |
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Shelter Dog Lover
Posts: 10277
| Mzbradford - 2017-09-09 9:44 AM rodeomom3 - 2017-09-09 9:23 AM Mzbradford - 2017-09-09 8:25 AM Ashley Lynn - 2017-09-08 4:20 PM I have a different spin on it... since you've been saving that $400 a week anyway- put what you have saved in a savings account or a CD, borrow against it and keep using that money you're saving as a payment. That way that money you saved will accrue interest, though probably not much, but you will still have it when your horse is paid for. And since you are borrowing against your own money you won't need anything else for collateral. If you jump up and spend everything you've saved on a horse you have no cushion for emergencies! This is how I set most of my stuff up, against my own money. Lower interest rates (its usually 1% above what your cd is paying) and you don't ever get in a bind, because if something horrible happens- you can always turn your own money over to pay the note without it effecting your credit! You may already know all of this! But I just thought I'd give you a different view point on it!! I just made this post because I think it's just interesting to see how people do it. I'm a person who likes to have money in my hand because you just never know. Thanks for all the responses! Just yesterday I thought of this post when my husband's sister called to ask to borrow some money. Her husband got a job transfer, the move will be paid for but will be reimbursed, not paid for upfront. They live in a 575K house, nice cars, 2 kids in lots of extracurricular activities but not a penny in savings, what I call "rich poor" and literally just one bump away from it all falling apart. It is just crazy. I am far from that. I have zero debt currently (not saying I haven't before ). My vehicles and trailer are paid for. I just know that there are different ways to get to a goal- whether it is spending big money on a horse or not. I know that not every person pays cash for a 25k horse, similar to how people do not do that when they buy a new car or truck. I was just curious. 
Edited by rodeomom3 2017-09-09 9:59 AM
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Expert
Posts: 1956
Location: Ky | I never borrowed to buy a horse but I'm not saying I wouldn't either. If I wanted a particular horse and the owner was willing to sell the horse but I didn't have the cash then I would borrow it.
It might be a dumb thing financially but life is too short as it is. People that won't borrow to buy a horse many times won't bat an eye at borrowing to buy a boat, a motorcycle, RV, etc. I always enjoyed my horses just as much, if not more, than they did their boats and motorcycles and such. |
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