If you’re a horse owner or considering buying a horse, understanding how to budget for your equine friend is crucial to effectively manage the costs associated with horse ownership. However, sometimes just saying the word “budget” and we cringe. But, whether we’re business owners or private horse owners, sticking to a well-thought-out budget alleviates the financial stress we’re all under these days. Think of budgeting as a form of insurance, a crisis-prevention tool that can help you survive even the worst economic times.
Find your style.
Design a budget that fits your business or your personal style and adjust it as you go. Your budget should work for you, not the other way around. If it’s too hard to follow, unrealistic, or too stingy, you won’t stick to it.
There’s an app for that.
There are dozens of apps that can help you budget. Apps help you track expenses, keep good records as you go, and adjust if necessary. Check out Mint™ or Goodbudget™ to help you track expenses right on your phone. Some apps will sync directly to your bank account.
Keep things separate.
If you’re running an equestrian business, keep your household budget separate from your business. This keeps the IRS happy and will help your business succeed.
Get started.
The first steps are the most difficult. To get started, tally all monies coming in and all monies going out for the last three to six months. Include wages, tips, and interest, but don’t include income that isn’t consistent. If you teach lessons that depend on the weather, for example, tally what you’ve earned over the last 12 months and take an average.
Tally all money spent. This is the hardest task of all because it requires a bit of soul-searching. Being honest here (don’t ignore the iced coffee on the way to the barn) will benefit you in the long run. List all your expenses, including hay, feed, board, supplements, medications, show fees, and traveling expenses. As fuel prices soar, you might have to adjust your budget. Don’t forget to include miscellaneous expenses like extra lead ropes, buckets, or salt blocks.
Compare the incoming and outgoing.
Ideally, your income should exceed your expenses, but if it doesn’t, don’t despair. Think of budgeting as a challenging board game. How can you decrease your expenses to make ends meet? Can you eliminate home expenses like cable television or dining out? Business owners, like saddle fitters, can decrease travel expenses by bundling visits. Use social media sites or blast newsletters to let clients know when you’ll be in their area.
Keep it flexible.
Your budget needs to be flexible as the economy and your situation may change. It’s impossible to plan for every bump in the road, especially these days, but having a little cushion can help you weather a slow period. Horse owners will want to allow for rising hay and grain prices, fuel, and other increasing expenses.
Measure your progress.
Schedule regular check-ups to track your progress. Tracking progress helps to show you how your budget is holding up, but it also keeps you motivated to stay on track.
Love this blog post? We think you will like by Budget-Friendly Tips for Horse Owners by Emily Fought.
