Planning for the Financial Impact of a Relocation

November 30, 2020
Admin
Moving Tips

Whether you’re moving to begin the exciting retirement years, taking on a promotion in a new city, or moving a little closer to the people you love, the process can be stressful and worrisome. One step you can take to alleviate the worry that often accompanies a relocation is calculating your moving costs in advance to better prepare yourself for the financial impact.

Costs to Consider

The most common mistake made when calculating moving costs is overlooking some of the additional expenses that accompany relocation. Use this list when calculating moving costs to make sure you’ve considered everything:

Disconnecting or early termination fees from your current landlord and utility providers (home security, television, phone, electric, rental costs, etc.)
Storing household good while you’re moving or once in your new place (especially if you’re downsizing)
Traveling to your new city to house hunt and find a school, work, or childcare as they apply to you (flights or mileage, food, and lodging)
Down payments on your new home or apartment; new utility accounts; new childcare provider; etc.
Packing supplies like boxes, tape, markers, and bubble wrap
Professional movers to package up your furniture and items, load the truck, transport everything to your new home, and unpack the truck there
Closing costs on a new home, if you’re buying
Transporting pets (there are professional pet transport companies you can explore if you won’t be able to move your pets yourself)
Gas for the drive, food and snacks along the way, and any lodging if you’ll be driving more than one day to reach your destination
Child and pet care to cover the time you spend packing, moving, and unpacking if applicable

Overlooking even a single cost, like the cost of the house-hunting visit alone, can put the cost of your move well above the amount you budgeted to spend.

If you’re moving for new employment, you’ll also want to consider any new wardrobe or equipment you might need; while these aren’t considered moving costs, they come up at the same time and should be considered for the best possible preparation and planning.

Factors That Impact the Cost

The factors that affect the cost of your move will vary. Some of the things to take into consideration include:

The distance of the move; further moves require more resources
Size of the move; moving a 4,000-square-foot house is more expensive and labor-intensive than moving a 500-square-foot condo
The complexity of the move; high-end, fragile items that must be transported in a specific way (temperature, humidity, packaging, etc.) are more costly to move than standard household items
Timing of the move; there is more demand for moving services in the summer, so the services tend to be more expensive
Number of people relocating; because you’ll have to pay for food, snacks, and lodging for all those relocating, moving a family of six is more expensive than moving a family of one or two

With the right planning and preparation, you can all but eliminate unexpected expenses and ensure you’re ready for the expense well in advance.