Moving can be exciting. But it can also be a stressful event, whether you’re planning to move across town or to a whole new country. People move for different reasons. Maybe you’ve been planning to move for a while, or it’s something that just came up and you can’t help but move.
Moving is a crucial life change, especially when embarking on a whole new journey. You can put your wallet to the test; therefore, you should at least make sure that you are financially prepared before you move. Here are some tips to help you prepare financially for your big move.
create a budget
A budget can help you create financial stability. Tracking your spending makes it easy to pay bills on time, save for important expenses, and create an emergency fund. When you move, 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 the costs of getting you and your belongings into your new home and the cost of settling in. Short-distance moves can cost you less than $1,000, while long-distance moves can cost more even if you pack everything yourself.
Moving to a new home also comes with upfront costs that you need to plan for. If you’re buying a new home, getting a mortgage and closing the deal may have a fee. If you rent your new place, be prepared to pay application fees, security deposit, and other fees. You may not be in a position to make an exact budget for life in your new home, but you can at least make an estimate.
Find ways to save money
With an overview of where you’ll be moving and an estimate of how much you’re likely to spend, think of smart ways to save money. The truth is that there will be more expenses besides the obvious moving part. Fortunately, there are many more possibilities to save on the cost of moving.
Reduce moving costs
The best way to reduce your moving costs is Get creative with how you get for items. Avoid buying supplies and consider asking neighbors or friends who recently moved in to store your boxes and any other moving supplies for you. Be resourceful in using what you already have and look for alternatives to wrap delicate items and protect your property.
Another way to save money is to host a garage sale. Taking the time to get rid of clothing items you no longer wear can help you reduce the number of people moving and the size of the moving vehicle, ultimately lowering your overall moving costs. You can also save money by choosing a more reputable contractor to handle the successful and safe transportation of your valuables.
Getting a roommate can also help you save on rent. While it may not be a required step when moving, choosing someone with a similar lifestyle to yours may even allow you to move to a larger place, since splitting the bills can help you pay for a better place. Write down the financial obligations of each of you and, if possible, sign separate leases so that you are not responsible if your roommate is late on rent.
Be prepared for additional costs
Moving can throw you into all sorts of unexpected costs. It is imperative to have an emergency fund that you can access whenever unexpected expenses arise. Your emergency fund should cover at least three to six months of your living expenses. If you’re not sure about getting a job right away in your new city, you’ll need to save at least six months of expenses, and if you can manage the savings for a year, even better.
Even with an emergency fund and a pre-planned budget, moving can still bring unexpected expenses your way. To stay afloat, you may need Online Installment Loan 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 you move
Once you move in and start settling in to your new place, shift your focus to purchasing new items. If you’ve moved to a larger home, find out what kind of furniture you need. Capture it well in your budget. Be sure to collect receipts and any useful information about the move.
This move is crucial if you need a refund from your employer. If you are in the military, you may need proper documentation of moving information if you plan to deduct the expenses from taxes.
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