Let's talk about financing your dream. I just bought a new horse and I’m so excited. We all have dreams. Sometimes we spend a lifetime pursuing a dream. Sometimes we realize we’re just never going to achieve it and move on to something else. Or it gets put on hold and sits somewhere in back of all the practical and “important” things. Since the first time I sat on a horse, I dreamed of life on horseback. It didn’t seem to matter to me that I didn’t show any particular talent for riding and training horses.
I actually raised pigs for two years to buy my first horse. I even went to college for horse science. But in the end I took an ROTC scholarship so I could finish school and had to join the Army. More than 20 years later my husband and I finally bought a farm and riding was a big part of my life again. I realized that I wasn't going to make it as a professional rider. I would be paying to ride not get paid to ride.
Fortunate for me, I began saving for “the future” a long time ago in a mutual fund that a fellow soldier recommended. This was long I knew anything about IRAs or military members could contribute to the Thrift Savings Plan. I sent in a just little bit of money each month for about 10 years, then just left it there with no real plan. It’s amazing what time can accomplish with investing. I since began saving much more seriously for retirement. But hat early seed quietly grew and grew and eventually became my horse fund. When it did well, I took extra lessons and competed more. When it was down I left it and pared back. Unfortunately, this year my horse oft 8 years had to retire. So it was time to take a hard look at the horse fund. What could I afford? As you probably know, the cost of a live animal goes well beyond the purchase price. They eat. In my case they eat like a horse!
So I set a limit for what I would spend buying a horse, leaving plenty in reserve for the upkeep and emergencies. And then I shopped and I shopped. I fund a couple I liked, but they each fell through. Then I had a chance to try a really nice horse…that was outside my price range. If things went well, he’d be ready to compete in the spring at a level that would save me a couple years of training. If things went south and I had to start over yet again, there r wouldn’t be much money for a replacement. I decided to go for it and insured him to help with risk. He came home last weekend. His name is Coffee.
The point is that we all have dreams. What is the value of a dream lived? Can you put a really price on that? Yes, you really can. And you really should before you reach for your wallet. The trickier question is what it’s worth it to you and what do you have to give up to pursue that dream. The higher the cost the more carefully should consider it. Maybe now’s not the right time. For me, my time wasn’t when I was younger and not sure I could finish college. It wasn’t the path of a professional rider, but the joy of an amateur who just does it for fun. What am I giving up by spending more than I first planned? The chance for a full dream do-over if this doesn’t work out. There won’t be much money left for yet another. But having a hard budget also means I’m not risking our retirement, or my husband’s well-being. Nothing will get repossessed.
So don’t give up on your dreams. Plan for them. What will your dream cost? What can you afford? What is it worth to you? Really. Put a dollar figure on it. And consider the cost to the one’s you love and who depend on you, and your future. Then save, invest, dream, and do. What are you working for? Living my dream is worth so much to me. But it’s not priceless. And I know I’ll wake tomorrow with no regrets, hoping it’ll be a long and glorious ride. I hope you will too. What’s your dream and how are you getting there? I’d love to hear. You can drop me a line at katie@moneypilotadvisor.com. And be happy out there
