Moving may be necessary if you want to take the next step on the career ladder. It can also be tempting to move if you are ready to start anew personally or if you need a change of scenery.
Start with a Budget for Moving Costs
A budget is essential for managing your daily expenses. You can apply the same concept when moving is on the plan. Start by breaking down moving costs into two main categories: all costs associated with the move and living expenses after you settle into your new place.
Moving Costs
This category covers all expenses you may need to pay to move from point A to point B. This may include:
- Boxes and packing materials
- Renting a moving truck if you plan to move yourself
- Hiring professional movers
- Utility deposits if you’re renting your new place
- Remaining utility balances in your old home
- Renting a storage unit
- Professional cleaning services if you’re moving from a rented home
- Driving expenses
- Airfare if the move is long-distance and involves flying instead of driving
- Shipping fees (including pet and vehicle transport fees)
- Moving insurance
- Security deposit for your new apartment if you’re renting
- Short-term temporary housing if you’re planning to buy
If you plan to buy instead of rent, you will also need to add home purchase costs to your moving expenses. These include items such as a down payment, earnest money, and closing costs.
So, how much should you allocate for moving costs? The amount can vary based on the distance you are moving, the quantity of belongings you need to transport, and whether you prefer to hire professionals or choose to do it yourself.
According to HomeAdvisor, the national average moving cost ranges from $200 on the low end to over $10,000 on the high end. The average cost in May 2021 was $1,392. Comparing individual moving costs and services can help you better set your budget.
Living Costs After the Move
The other side of moving is understanding living costs afterward. The expenses you should be more concerned about here include:
- Mortgage or rent for your new home
- Monthly utility costs
- Transportation
- New furniture and home decor
- Ongoing repairs and maintenance if you’re buying a home
- Groceries
- Car, renter’s, or homeowner’s insurance
- Property taxes
These are the most basic expenses to consider when moving, but there are also other costs to think about. For example, healthcare should be considered. You may be young and healthy, but if you get sick or injured, you need to know how much a doctor’s visit will cost if you’re waiting for your insurance to kick in or if you haven’t met your annual insurance deductible.
Next, think about things like dining out, entertainment, and hobbies. In a big city, going to a restaurant or seeing a movie may be more expensive compared to where you currently live.
You need to carefully consider how to adjust your budget after the move and how your new income will align with your spending. If you are moving to a higher cost of living area, it may mean needing to cut back on some non-essential items.
A tighter budget may also lead to fewer visits you can make to your old hometown. This comes into play if you leave behind close family or friends and want to plan regular visits.
Calculating the Return on Investment for Moving
While evaluating moving costs, remember to think about the bigger picture. Specifically, ask yourself what to expect from the return on investment, both financially and emotionally, when moving to a new city.
Calculate
Evaluating the job market if you are looking for a job and do not have an offer yet. Moving to a city with a larger population does not necessarily mean there will be many job opportunities. Even if there are, you may be facing fierce competition if hundreds or even thousands of other job seekers are moving for the same reason.
Carefully consider salary expectations as well. Looking at median salaries and the lower range for workers in your industry in a specific city can give you a better idea of where you’ll fall on the pay scale once you are employed. Inputting your expected income into a cost of living calculator for the city you are interested in can help you determine how affordable it is.
Finally, look beyond financial considerations and think about the overall quality of life that the city offers. Moving – even if it means career advancement – can be very emotionally challenging if your quality of life is affected. While it may not impact your moving budget, it’s important to know if there are others your age to make connections. Whether your new city offers the type of hobbies and lifestyle you are looking for can also play a big role in your decision. Consider your new life as a whole – work, social life, activities, and even the weather – as cost factors when deciding whether to move and where and when to move.
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Sources:
- The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
- HomeAdvisor. “How Much Does It Cost to Move?”
Source: https://www.thebalancemoney.com/how-to-calculate-the-costs-of-relocation-4174726
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