Wednesday, May 28, 2014

Being Financially Prepared for a Move

Moving is a huge undertaking which requires proper planning and a lot of dedication to your project. The expenses related to moving can quickly add up, draining your finances. If you know that you plan on moving within three to six months, there are a few things you can do to make the transition a little easier on your pockets:

  • Know what area you are moving to and how much it will cost. If you are moving to a new apartment, you should know how much the application fee will be, how much you will have to put down as a deposit and any other fees associated with the move. If you are buying a home, you should have a good assessment of how much your closing costs will be, insurance and other costs related to your purchase.
  • Have a plan in place. This plan should be like a temporary budget. You should factor in utilities, monthly mortgage/rent, etc. This plan should also include looking for and securing new employment. You should have at least three quotes from moving companies which include the cost of insurance. Knowing what is included is important.
  • You should have at least three to six months in an emergency fund to help defray costs after your move, but should also have a moving fund in place to cover the movers and other expenses. Your moving fund should include your deposits, closing costs, etc. This may come in handy, especially if your apartment/home is not ready and you have to temporarily reside in a hotel.
  • Make sure the money dedicated to your move is in a separate account, away from your everyday finances. Co-mingling finances can get a little sticky and you don’t want to be put in a position where you don’t have enough money because you overspent in your personal account.
  • If you have to place your things into a self-storage facility, find out the costs beforehand including whether or not insurance is required so that you know how much you will be looking at initially. If possible, pay for a month in advance to give yourself some breathing room after the move.
  • Factor in grocery shopping expenses for when you move. The initial shopping trip is usually the most expensive one, because you are replacing items that were given away or eaten prior to the move. Make a list and record the prices of the things you need so you will have a general figure on what will be spent during your trip.

Having a financial plan in place will help you prepare for your move and give you the breathing room you need to make wise decisions. Moving can easily cost hundreds or even thousands depending on what you move and where you move to. If your move is business or company related, make sure to keep all receipts so that you can deduct your moving expenses at the end of the year. If you’re planning to make that deduction, make sure you have moved at least 50 miles away. Taking these steps will put you in the driver’s seat and keep you in good financial shape for your move.


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