One of the most important money management tips one is taught is how to budget. Having a budget for purchases allows you to know where your money is going. Budgeting is particularly important when making significant purchases, like a boat.
If you have been dying to own one, you do not need to be very wealthy to buy it. By exploring your options, you can own a boat as well. Here are a few tips on how to purchase and own a boat on a budget.
Purchase a Used Boat
This is the most common way to keep boating expenses in check. Just like a car, once a boat is purchased, it starts depreciating in value. Buying a boat that is about a year or two old can help you save a good amount of money.
In the United States, there are more than 15 million boats, and of that number, you will find some wanting to sell. Do not assume that most people are selling it because the boat is not in good condition. Some sell to get bigger and better, and others may sell because they are moving or for many other reasons. However, when buying a used boat, be careful. Inspect it carefully, ensuring that it does not have many issues that will only end up becoming a nuisance.
Keep Up With Maintenance Checks
Another way to help you own a boat on a budget is by staying on top of maintenance. As much as care comes with a few costs, it is better than the high costs you will incur for not maintaining your boat properly. Think of something like a car engine. If you fail to change the oil regularly, the engine could lock up, requiring you to buy another one. The same thing applies to a boat. Invest in maintenance and watch your boat serve you for a long time.
Share Boat Ownership
You can team up with a family member or a friend in buying the boat to keep the costs down. This allows most people to own boasts which they consider something outside their means. Boating is mostly middle-class, with about 72% of boat owners have a household income of less than $100,000. One of the ways that this has been made possible is through joint asset ownership. However, it is important to have an agreement when you decide to get into co-ownership. Let everyone state their expectations and then come to a middle ground. This will help prevent conflict in the future.
Downsize Your Boat
Many boaters suffer from a condition called three-foot, and it is where they feel they need to get something bigger. Despite the size of your boat, you always want a bigger one. However, when you want to own a boat on budget, your goal should be downsizing.
Ask yourself whether you really need a big boat. Note that a bigger boat comes with higher costs, starting with its initial purchase. Even if you manage to get boat financing, there are monthly installments to consider, plus insurance, fuel, among other things. It can be easy to find yourself in debt, joining the approximately 68 million Americans with poor credit. To avoid this, buy a smaller boat with lower purchase and upkeep costs.
Store the Boat Yourself
Another cost that catches most boat owners off-guard is the storage cost. Several companies are ready to store your boat at a safe facility until you need it. Another option is keeping the boat at the marina. Both these options are costly. There is a third option of storing the boat at your home. Get a trailer and store the boat inside, then put the trailer in your yard. You could also build a shed that is big enough for it. Storing at home is cheaper, and once you build the shed or get a trailer, you will not incur other storage costs.
There are a number of ways to save on cash and still enjoy a ton of boating activities. Check them first before you purchase that boat you’ve been eyeing. When you explore your options, buying a boat becomes simpler, easier, and more cost-efficient.