How to Create a Realistic Moving Budget

iCrowd Newswire
21 Mar 2023, 02:48 GMT+10

Moving is typically not a cheap expense, so you want to be sure you're financially ready beforehand. Preparing for a move involves creating a budget and then saving up to minimize or avoid debt. With that in mind, this article will explain how to create a realistic moving budget so you can maintain financial peace of mind as you relocate.

1. Calculate your moving expenses

Start by calculating your moving expenses. This will differ depending on distance and your moving method. For example, moving entirely on your own is often the cheapest option. You will only need to pay for gas in your car if you can fit everything in it or a moving truck if you need more room.

Next up is hybrid moving. This mixes DIY moving with assisted moving, so it's a bit more expensive than DIY. You might load and unload everything yourself, but use a portable moving container to transport your stuff.

Finally, there's full-service moving. A moving company does everything, from loading to transportation to unloading and even arranging your furniture and items in your new home. This can be the most convenient but most expensive option.

Distance also matters. Long-distance moves cost more in all cases, but not to the same degree. Long-distance DIY moves will only add gas and possibly hotel stays. Portable moving containers and full-service moving costs can increase significantly with distance.

2. Take inventory of your belongings

Next, take inventory of all your belongings by making a comprehensive list of them. This will help you avoid losing items or leaving them behind. It also helps you create your moving budget. Having more items means you need more space or help, depending on the method, which will cost more.

Additionally, taking inventory can help ensure you comply with laws for special items. For example, movers generally can't move hazardous materials like batteries, fertilizers, and paints. Other items, like firearms, may require you to give notice and make sure they're unloaded.

3. Put moving expenses in a savings account

After you've budgeted for moving expenses and taken inventory of your belongings, consider saving for the move in a high-yield savings account. This will help you earn far more interest on your savings than a traditional account while keeping your money safe. As a result, you'll earn money on your savings that you can use to cover the move.

4. Add to your emergency fund

Things can happen while you're moving or soon after the move that can increase the chance of unexpected expenses. Plus, you may have to take some time off work, which may reduce your income. Before your move, build up your emergency fund. Consider adding at least another month's worth of expenses to that savings account so you feel financially secure before you relocate. And if you have to cover an unexpected expense before you've built up your emergency fund, consider getting an online loan so you'll have the funds you need.

The bottom line

Moving to a new home can be stressful, and not just personally. Finances also come into play. But creating a realistic moving budget can help you reduce that stress and avoid breaking the bank.

Start by calculating your moving expenses and taking inventory of your items. Once you do so, save your moving expenses in a high-yield savings account and bolster your emergency fund. This will help you maximize your moving expenses and prepare for the unexpected. Follow these steps, and you'll feel more at ease as you relocate to your new home.

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