Moving Costs: How Much Money Should You Save?

So, it’s time to move. Whether it’s for a job, because you don’t like your current landlord or neighbors, or just because you want a change, the prospect of moving can be quite appealing. But before you start picking out furniture for a new place you haven’t even found yet, it’s important to truly consider the many aspects that are involved in a move. One very important thing to consider before jumping into a commitment is whether you are emotionally ready to part with your old life and financially comfortable to afford a relocation. When moving house, costs add up quickly. You need to be able to cover these costs without difficulty in order to have a smooth, stress-free moving experience. But, how much money do you need to be prepared to move? It all depends on a number of things, such as:

  • The living costs in your new area;
  • The amount of items you’ll need to purchase for your new place; and
  • The size of your move, including the distance from your current to new home.

To figure out how much you will need to save in order to afford all of the moving expenses required, continue reading.

Housing

Housing expenses will typically be your largest financial challenge when moving to a new home.

Renting 

If you decide to rent an apartment or house, you will be required to provide several things, including:

Safety Net: Before you sign a lease for a new home, you are strongly encouraged to save enough money to cover at least three months’ rent – even more if you don’t have a steady income at the time of your move.

Security Deposit: When renting, you will be required to put down a security deposit at the time you sign your lease. Security deposits are typically the same amount as one month’s rent. One potential perk here is that you will be able to get your security deposit back after you move out. However, you will only get all of your money back if you leave the rental property in just as good of condition as when you moved in.

Management Fees: When renting a home, you will be charged for a background/credit check. This will add up to another $50 you will have to be able to hand out on the spot.

Buying

If you decide to buy a home, the initial costs are much, much more than that of renting. This being said, you will need to have a lot of dough saved before the idea of purchasing a home is even an option. To avoid extra fees like mortgage insurance, you will need to have saved 20% of the final cost of the home you are buying.

Whether you rent or buy, be sure the monthly rent or mortgage does not exceed 25%-30% of your disposable income. Otherwise, you run a dangerous risk of enduring serious financial difficulties.

Utilities

When you relocate to a new home, you will need to have all of the utilities turned on. These include gas, water, electricity, etc. If you like entertainment, you will also want to install extra utility services, like cable and internet. Utility costs depend on the area you live in as well as the size of your home. Also note that there are often extra connection and transfer fees you will be required to pay in order to have these services turned on.

It is a good idea to contact service providers in your future area before moving in order to get an estimate of what your monthly bills will be. In turn, you get a better idea of your total monthly expenses.

Moving Expenses

Moving house equals moving expenses – to hire movers, to buy packing supplies, and so on. These costs can range anywhere from a few hundred dollars to several thousand, depending on the distance to your new home, the size of your move and the moving assistance you require.

DIY Move: A do-it-yourself move is definitely the cheapest option when moving house. But keep in mind that a DIY move is only possible if you rent a moving truck and have reliable friends and/or family to help you. It is also, usually, only possible when moving locally. If you do opt to move by yourself, you will still need to pay for several things, such as:

  • Rental truck (and fuel)
  • Vehicle insurance
  • Road tolls, parking fees, and meals and lodging, if applicable
  • Moving boxes, packing tape, packing paper, moving dollies, etc.

Professional Movers: Hiring professional movers may be more costly than a DIY move, but it is definitely the more worthwhile choice. Experienced movers have specialized moving equipment, plus the required know-how to perform an efficient and safe relocation. When moving locally, you will be charged on an hourly basis. For long-distance moves, relocation costs are based on the total weight of your items and the distance to your new home.

For a FREE price quote based on your moving needs, contact ABC Movers.