Loan for hunting

[Addicting]

This post on another thread made me think and thought it deserves its own thread. @Big Fin or @wllm can put together some numbers and pretty graphs on this.

Although, it always amazes me what some people are willing to spend on hunting. I know individuals taking out $30,000 loans to go hunt in Alaska. Absolutely insane IMO.

Is it though? We take out loans for everything now. The whole run out of health before money is a motivator when you have had a dream of hunting something. For some it’s easier to make a payment that has negative consequences verses making a payment to themselves for 5 years to be able to afford the trip.


I’ve been looking at an Alaska/Yukon moose & mountain caribou hunt like Fin did as a OIL trip. At 43 with two preteens saving 30k before I’m 50 is a tall task.

In all likelihood that 30k cost now will be 35k in 5 years when I can actually pay cash.

Will I pay 5k on interest on a 5 year loan?

 

[brocksw]

This post on another thread made me think and thought it deserves its own thread. @Big Fin or @wllm can put together some numbers and pretty graphs on this.



Is it though? We take out loans for everything now. The whole run out of health before money is a motivator when you have had a dream of hunting something. For some it’s easier to make a payment that has negative consequences verses making a payment to themselves for 5 years to be able to afford the trip.


I’ve been looking at an Alaska/Yukon moose & mountain caribou hunt like Fin did as a OIL trip. At 43 with two preteens saving 30k before I’m 50 is a tall task.

In all likelihood that 30k cost now will be 35k in 5 years when I can actually pay cash.

Will I pay 5k on interest on a 5 year loan?

Depends on interest rate. 5% is almost 4k in interest over 5 years. Not to mention a $550+ monthly payment hanging against your debt-to-income ratio. IMO, the wise move would be to set a goal and save that monthly payment or more every month until you have met your goal. Then book your hunt. I know it takes more time, but IMO, that's the wiser move. Removes all liability.

edit: If saving it in 5 years would be tough, signing yourself up for a loan that forces you to make that same payment for 5 years doesn't seem like the right move.

 

[Werty]

I personally wouldn't do it, but I have a credit card balance. So who am I to give advice.

 

[Addicting]

Depends on interest rate. 5% is almost 4k in interest over 5 years. Not to mention a $550+ monthly payment hanging against your debt-to-income ratio. IMO, the wise move would be to set a goal and save that monthly payment or more every month until you have met your goal. Then book your hunt. I know it takes more time, but IMO, that's the wiser move. Removes all liability.

Inflation was 8.7% last quarter so the real question is where is the breaking point where that 5% saves you money if you spent the 30k now.

 

[Nick87]

Loans are for needs...cash is for wants. Unless it's zero percent maybe.

 

[Addicting]

Loans are for needs...cash is for wants. Unless it's zero percent maybe.

Does anyone actually need a 60k pickup or SUV or will a 1990 Honda Civic do the job? Wants verses needs are a hard argument we all struggle with.

 

[brocksw]

Inflation was 8.7% last quarter so the real question is where is the breaking point where that 5% saves you money if you spent the 30k now.

I hear ya and you could probably fiddle with numbers enough to make it make sense. Other members on the forum would be best for figuring out what that breaking point is. IMO, even if you can tie in inflation or whatever other metric you need to make the numbers come out right, it's still not a good idea. But my opinion didn't cost you a penny, and that's what it's worth.

 

[Nick87]

Does anyone actually need a 60k pickup or SUV or will a 1990 Honda Civic do the job? Wants verses needs are a hard argument we all struggle with.

There ya go, sell your truck and house head to Alaska on your trip.

 

[BackofBeyond]

I guess I’m a dinosaur, because I’ve got the same fiscal policy as my grandpa - if I don’t have the cash for it, I can’t afford it.

 

[Addicting]

There ya go, sell your truck and house head to Alaska on your trip.

Lol, I’m more the Honda guy. I sold my new truck 2 years ago to buy one 8 years older. Bought a repo SUV that needed an engine and transmission so we could pay cash for it and the repair.

 

[Nick87]

Lol, I’m more the Honda guy. I sold my new truck 2 years ago to buy one 8 years older. Bought a repo SUV that needed an engine and transmission so we could pay cash for it and the repair.

I hear ya, we all want to go hinting most of us need to stay married so there's that.

 

[Addicting]

edit: If saving it in 5 years would be tough, signing yourself up for a loan that forces you to make that same payment for 5 years doesn't seem like the right move.

I tend to agree but gambling on health and inflation has me thinking it may not be so crazy of a idea.

 

[brocksw]

I hear ya, we all want to go hinting most of us need to stay married so there's that.

I just imagined asking my wife to take out a 30k dollar loan for a hunting trip. Saw my life flash before my eyes.

 

[Letthemgrow]

 

[Addicting]

I hear ya, we all want to go hinting most of us need to stay married so there's that.

Wife preapproved the trip when I turned 40, that I can go before I’m 50. As it continues to get more expensive she is starting to regret that. I save 250 a month but it appears to be like chasing point creep. I feel like just keep falling farther away from the goal.

 

[brymoore]

Wow.

I’d never borrow money for a OIL or any other hunt without extraordinary circumstances. Someone dying with life insurance or other funds to pay for it in the future.

Borrow? Never.

Another option maybe to pay ahead for a few years. Once upon a time, I looked into booking a Dall hunt, paying for it over three years. I didn’t book the hunt for a few reasons and I’m glad now I didn’t. The Great Recession occurred and my cash flow (bonus funds) dried up for a few years.

 

[AvidIndoorsman]

Will I pay 5k on interest on a 5 year loan?

Today, more. Just responding as a math question.

The cheapest (interest) way to do this is borrowing from yourself via a home equity loan. Every other loan I can think of would be insane interest.

If you had done it in 2020 at 2.75% then yeah you probably beat hunt price inflation. Today you’re looking at 5-7% at least which means you are paying more.

I think right now is actually a really good time to save for a hunt, 1. We might see price reduction or stagnation with a possible recession 2. APYs on savings accounts are crazy right now.

Many options at 3.4% and that will help a lot with hunt price inflation.

 

[Nick87]

Wife preapproved the trip when I turned 40, that I can go before I’m 50. As it continues to get more expensive she is starting to regret that. I save 250 a month but it appears to be like chasing point creep. I feel like just keep falling farther away from the goal

Feel that way with most anything i wanted the last couple years.

 

[Irrelevant]

I definitely get the idea and don't think it's terrible. If you compare this topic to the idea expressed in the 8 WY pnts thread... I mean the demand for these hunts isn't going away, but in some/many cases there are fewer and fewer opportunities every year. Both of those will or should lead to increased costs. My guess is that they grossly exceed inflation and any interest rates you're going to pay, except maybe some crazy CC at 18% or something

 

[Addicting]

There is always Only fans at 45k a month. I just need to find my niche. My wife thinks my balding dad bod is hot, I think she needs glasses….