Boats represent many things to many different people. They can be a way of life, they can be the method by which an individual supports their family, they can be an avenue for adventure, they can be a place where memories are made, or they can be a way to see the world. The water itself is a conduit of survival and a boat in any form, whether it be a canoe, a kayak, an ocean liner, a fishing boat, a speedboat or a yacht, is essential to navigating the waters of life.
If you’re a boat lover and you’re looking to buy, here are some finance related tips to consider:
Buy Within Your Means
Though boats make people happy, they’re not necessarily going to be the things on which a person can splurge. Depending on where you live, you might only get to use whatever type of boat you purchase for a couple months out of the year.
If you really want an avenue through which you can spend time on the water during the warm months, remember to buy within your means. You might desire to purchase yourself a yacht, but remember that you’re not only going to be spending money on the yacht itself, you’re going to be spending money on yacht services and maintenance as well. For your particular pocketbook, you might have to start with a kayak or a lightly used recreational motor boat.
Calculate What It’s Going to Cost You Monthly
Boats don’t come cheap, so when you purchase one you’re going to have to treat it like you would a car or a house. This means you might have to take out a loan to front the cost. Do your research to find the best avenue through which to take out your loan and then do the math to see what it’s going to cost you to pay off your boat with interest.
You’ll also want to figure in what it’s going to cost you to store your boat, how much gas you’re going to have to put into it to feed your recreational habits, and how you’re going to get it to and from the water if you don’t dock at a marina. You’ll also be paying taxes on anything you purchase, so keep that in mind.
Think About Going in With Somebody
If you really desire to own a boat but don’t have the money to own one all by yourself, you might consider going in on one with somebody. If you’re good friends with the people you co own with, you could always take the boat out together on the weekends or during the summer. Otherwise, you treat it like a shared custody agreement. One week on, one week off…it’s a small hassle to share, but it’s worth it if you want access without full financial responsibility.