- Relocating can be expensive depending on factors such as distance and the size of the home.
- Consider the cost of living in your new location when budgeting for a move.
- Include miscellaneous costs like travel expenses and job search costs in the budgeting process for a move.
- Save money for your big move by canceling unused memberships/subscriptions, setting up a savings account, and creating a budget.
Deciding to move to a different state is a big decision that comes with financial considerations. Relocating can be expensive, but just how expensive? That depends on several factors, including the distance of your move, the size of your home, and more. This blog will cover all the costs associated with relocating so you can plan accordingly.
The cost of moving will depend on the distance you are traveling and the number of possessions you need to transport. If you are moving across town or even across state lines within 500 miles or less, renting a truck or van and doing all the sackings and loading yourself may be more cost-effective.
Hiring professional movers is probably your best option if you’re going further than 500 miles away. The cost of hiring movers will depend on how much stuff you have and the company you hire; expect most companies to charge anywhere from $100 per hour up to $1,000 per day, plus additional fees for packing materials and other services.
Cost of Living Differences
When deciding whether or not relocating is worth it financially, consider moving expenses and living expenses in your new location. Depending on where you’re going, these costs could be significantly lower or higher than what you are used to paying now—so researching cost-of-living differences between cities should be part of your planning process.
For example, if you’re leaving San Francisco for Dallas, expect housing prices in Dallas to be significantly lower than those in San Francisco; however, taxes are higher in Texas than in California, so consider that when budgeting for your move as well.
If any additional costs are associated with relocating—such as changing mailing addresses or getting new driver’s licenses—then make sure they are also factored into your budgeting process.
Additionally, factor in things like travel expenses if necessary (e.g., plane tickets) and any potential job search costs (e.g., networking events). All these small miscellaneous items add up quickly, so ensuring they get accounted for early on will help prevent surprises!
Saving Funds for Your Big Move
As you can see, many costs are associated with relocating. The best way to ensure you’re not surprised financially is to plan and save up for your move. But how can you do this?
Cancel Unused Memberships/Subscriptions
If your main priority is finally moving to your dream destination, cut down on unnecessary expenses. That may mean canceling unused memberships or subscriptions that you no longer need. For example, if you have a timeshare contract, it may be time to let go of it. As such, calling for timeshare contract cancellation services can help you navigate the process and save some money.
Set Up a Savings Account
One of the best ways to save money is by setting up designated savings account specifically for your move. If possible, set aside 10% of your monthly income and deposit it into this savings account. This way, you have a specific amount saved and ready when it comes time to move. Many banks offer bonuses if you open up a new type of account with them; take advantage of these offers if they’re available in order to maximize your savings potential.
Create a Budget
Creating and sticking to a budget is vital when saving money for a big move. Determine how much money is coming in each month and how much should go towards paying bills and other necessary expenses like food and transportation. Once those necessities are covered, allocate leftover funds towards your moving fund.
Sell Unwanted Items
Doing an inventory of your possessions before the move could help reduce some of the clutter in your life—and put some extra cash in your pocket! Consider hosting an online yard sale or listing items on Craigslist or eBay; even minor items like clothing or books can add up quickly when sold individually.
The Bottom Line
Moving stateside doesn’t have to break the doesn’t do right! With these four tips on saving funds before making a big move, you should feel confident knowing that not only will this experience be financially secure, but it could also potentially provide additional opportunities for financial growth along the way! So start planning out early and get those savings rolling- good luck!