Moving can be exciting. But it can also be a tiring event whether you plan to move across town or to an entirely new country. People move for different reasons. Maybe you’ve been planning to move for a while now, or it’s something that just came up, and you can’t help but move.
Moving is a crucial life change, especially when starting a completely new journey. It can put a strain on your wallet; hence you need to at least ensure that you are financially ready before you move. Here are some tips to help you financially prepare for your big move.
Create a budget
A budget can help you create financial stability. Tracking your expenses makes it easy to pay bills on time, save for major expenses, and build an emergency fund. When moving, you’ll need two separate budgets: a budget for the move and a budget for the expenses you’ll need in your new home.
Your moving budget should include all costs of getting you and your belongings to your new home and the cost of settling you down. Short-distance moves might cost you less than $1,000, while long-distance moves may involve greater expenses even if you pack everything by yourself.
Moving to a new house also comes with upfront costs that you should plan for. If you are getting a new home, getting a mortgage and sealing the deal can come with a fee. If you rent your new place, prepare to pay for application fees, security deposit, and other fees. You may not be in a position to make an accurate budget for life in your new home, but you can at least put together an estimate.
Search for ways to save money
With an overview of where you are moving to and an estimate of how much you are likely to spend, think of clever ways to save money. The truth is, there will be more expenses other than the obvious moving part. Luckily, there are a lot more chances to save on the cost of moving.
Cutting down moving costs
The best way to cut your moving costs is to get creative with how you source for items. Avoid buying supplies and consider asking neighbors or friends who recently moved to save their boxes and any other moving supplies for you. Be resourceful by using what you already have and look for alternatives for wrapping delicate goods and protecting your property.
Affordable transport
Another way to save money is to host a yard sale. Taking time to get rid of any clothing items that you no longer use can help you decrease the number of movers and the size of the moving vehicle, which ultimately reduces your overall moving costs. You can also save money by choosing a more reputable contractor to be responsible for successfully and safely transporting your valuables.
Subletting
Getting a roommate can also help you save on rent. While it might not be a required step when moving out, picking a person with a similar lifestyle as yours can even allow you to move to a larger place, as splitting bills can help you afford a better place. Write down financial obligations for each one of you, and if possible, sign separate leases so that you will not be responsible if your roommate runs late on rent.
Be prepared for additional costs
Moving can throw you into all sorts of unexpected costs. It’s imperative to have an emergency fund that you can tap into whenever surprise expenses arise. Your emergency fund should at least cover three to six months of your living expenses. If you are not sure about getting an immediate job in your new city, you’ll need at least six months’ worth of expenses saved, and if you can manage savings for one year, the better.
Even with an emergency fund and a pre-planned budget in place, moving can still throw unexpected expenses your way. To keep you afloat, you may need online installment loans options. Online installment loans are fast, affordable, and allow you to borrow up to $500 or more in minutes with bad credit.
What happens after moving
Once you move and start settling in your new place, shift your focus to acquiring new items. If you moved to a bigger house, know what kind of furniture you need. Capture it well in your budget. Make sure that you compile receipts and any useful moving information.
This move is crucial if you need reimbursement from your employer. If you are in the armed forces, you may need proper documentation of moving information if you plan on deducting the expenses from tax.
Story by Max Collins
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