Moving to a new city brings with it a host of challenges. Which neighborhood, precisely, would you live? How will you make new friends when you are leaving an entire social circle behind? How will your children adjust to the move? Where are all the good restaurants? These are just some of the concerns that people moving have before they do so, but above all, the most important concern is finances, since moving, although you may think it is prudent idea, will cost you a great deal of money. Here are some tips if you are considering moving to a new city, state, or even country.
1. Understand the differences in cost of living.
This is perhaps the greatest financial mistake that many make when deciding that they may want to relocate. If you are considering moving because of a new job, calculate what you would have to make in order to maintain your standard of living. For example, according to this Bank Rate cost of living calculator, if you live in Houston and make $42,000, you’d have to make over $63,000 in order to live the same way you do now in Washington, DC. Factor in differences in cost of living before agreeing to a job and salary in a new city.
2. Depending on your new location, it may be better to purge many of your possessions.
Of course, if you are relocating to a new city that’s an hour away, it’s not as difficult or expensive to move all your belongings. But if you are moving across the country, or even to a different country altogether it makes financial sense to get serious about getting rid of as much as you can, particularly large items. Setting up a garage sale, auctioning items on Ebay, or selling them on Craigslist are all great ways to make money for any new times you’ll need once you move.
3. Don’t buy everything new for your new residence.
Whenever you are about to embark on a new beginning, it’s very natural to desire new things for your new place. Of course, you will likely have to buy some new items to replace older items that you’ve sold or given away, but try your best to stem the impulse to buy something new at every turn, which can cost you significantly.
4. Plan well in advance for standard moving expenses and save up for them appropriately.
There are tons of expenses associated with moving, and many of them are not so obvious. Of course, you’ll definitely be paying for moving services, but there other expenses, like start up fees for switching to new service providers, down payments for your new residence, etc, that you’ll have to factor in when saving for a moving budget. It can sometimes take several months before you’re truly financially ready for the move.
As you can see, moving is a very big ordeal, and it becomes even more stressful the farther away it is. Just make sure you’ve done a thorough cost-benefit analysis before taking the leap. Good luck!