Are You Financially Prepared for Moving?
Most people decide to relocate because they feel the move will increase their quality of life, one way or another.
If you’re not prepared for the financial burden associated with a big move, then you’ll benefit from a consultation with a financial planner.
To prepare yourself financially for relocation, use these helpful tips to ease the potential burden:
Have an emergency fund close at hand
If you’re considering an expensive relocation soon, you’ll need to include a set amount of money to put aside as an emergency fund.
Moving expenses are hard to estimate, because you never know what surprises may spring up at a moment’s notice.
- If your new place of residence isn’t ready on time, you might have to stay in a hotel for a night or two.
- There will be activation fees to restart or initiate services at your new residence.
- Consider selling big-ticket items you can live without, like computers, televisions, cars, computers, or antique furniture. These will become sources of quick cash that pad an emergency fund that gets you through the first few months in your new home.
Secure job offers before you move
If you’re moving to a new area, you’ll want to have a concrete job lined up at your new location first. There’s no need to create additional emotional or financial pressure as your savings begin to dwindle.
- Schedule interviews with potential employers before you begin your search for a new place to live. The sooner the better, since the likelihood of landing a job improves when you start sending applications before you arrive at your new residence.
- If you’re relocating due to a promotion or job change on the part of your spouse, you’ll need to revise your budget to live off a single income at first. Once you have a job of your own, you can add in the luxuries you were able to afford before the move, like dining out or entertainment expenses like cable or satellite TV.
Leave room for cost of living increases
Your new location may have a higher cost of living than you’re used to, so it’s important reserve additional funds to make up the difference, especially if you’re still looking for a job when you get there.
- Have at least three months’ of living expenses saved to use if you don’t have a job lined up already. In fact, it wouldn’t hurt to have two months worth of expenses saved for emergencies even if you’re already employed.
Visit the location first
Online services such as Craigslist and Rent.com make it tempting to rely on pictures of your listing and the surrounding area as an indication of what it’s like there. Avoid unpleasant surprises by taking a trip to see the area in person.
- A rental agent or landlord will show the most flattering photos of their properties, but that doesn’t give you a good indication of the size of the lot or complex, the surrounding traffic, and other important factors. You’ll need to see and experience your new location first-hand to really assess its value for you and your family.
- A site visit also gives you insight into the condition of the new living space and the surrounding neighborhood, as well as how trustworthy and friendly the neighbors are.
Determine a plan
Moving to a new area is always a little daunting at first, and since you won’t know many people there yet, you need to consider a plan to get acclimated to your surroundings.
Accepting a job offer for more money or better cost of living is great, but you won’t enjoy the savings much if you’re isolated from friends and loved ones.
In particular, moving to a new state can be an emotionally draining process.
- Create a list of hobbies and interests you have now, as well as the qualities in friends you appreciate most.
- Find places in that area like bookstores, coffee shops, churches, sporting events, and volunteer opportunities that will help you meet new people and become a part of the new community.
You may not be prepared to move right now, which is something you may discover by following these tips.
Even if you delay a major move for a few months and concentrate on a savings plan that prepares you for the road ahead, you’ll still be working toward the life you desire for yourself, one step at a time.