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Are you planning to move out of state?
Planning a big move can be both exciting and stressful. Whether you’re relocating for a new job, to be closer to family, or simply for a change of scenery, one thing is sure: moving can be expensive. Yikes!
Planning is your best friend! Budgeting can help you manage the costs and make your transition smoother. Start by setting a date you want to move by, and you can start taking small actions leading up to the moving date.
Here’s a step-by-step guide to help you budget for your out-of-state move:
Estimate Moving Costs
The first step in budgeting for a big move is to estimate your moving costs. Think about your needs, especially if you need special services or accommodations. This includes:
- Moving company fees: Get quotes from several moving companies to compare prices. If you’re doing a DIY move, consider the cost of renting a truck, a pod, and any necessary equipment.
- Packing supplies: Budget for boxes, tape, bubble wrap, and other packing materials.
- Travel expenses: Include the cost of gas, food, lodging, and any necessary travel accommodations for you and your family.
- Temporary storage: If there’s a gap between moving out and moving in, you may need to rent a storage unit.
If you are not budgeting yet, here is how to create a simple budget for beginners.
Create a Savings Plan
Create a savings plan once you have a rough estimate of your moving costs. Determine how much you need to save each month leading up to your move. Consider the following strategies:
- Set up a separate savings account: Keep your moving fund separate from your regular savings to avoid dipping into it for other expenses.
- Automate your savings: Set up automatic transfers from your checking account to your moving savings account.
- Cut unnecessary expenses: Review your monthly expenses and identify areas where you can reduce, pause, or eliminate to boost your savings.
Use a High-Yield Savings Account for this savings.
Here is how to make money with a High-Yield Savings Account.
Budget for Housing Costs
Housing is one of the most expensive expenses when moving. Include the following in your budget:
- Security deposit and first month’s rent: If you’re renting, you’ll need to pay these upfront.
- Closing costs: If you’re buying a home, budget for closing costs, which can include appraisal fees, inspection fees, and legal fees.
- Utility deposits: Some utility companies require deposits when you start service.
- Furniture: You may need furniture when you move. Include this expense in your moving cost.
Plan for Unexpected Expenses
Unexpected expenses are inevitable during a move. To avoid financial stress, allocate a portion of your budget for the unexpected:
- Emergency fund: Aim to have an emergency fund that covers at least three to six months of living expenses.
- Therapy sessions: If you are on a healing journey, you will experience grief—the grief of your past identity, your home, etc. Emotions will rise, and you want to be able to support yourself during this transition.
- Miscellaneous costs: Budget for unexpected costs such as repairs, last-minute supplies, or additional moving services.
You may be interested in this read: Your credit card is NOT an emergency fund.
Track Your Spending
As you get closer to your moving date, track your spending to ensure you stay within your budget:
- Track: Use an app like Mint, an Excel sheet, or simply pen and paper to help you monitor your expenses and stay on track.
- Keep receipts: Save all receipts related to your move to review your spending and make adjustments if necessary.
Spending can quickly get out of hand. The feelings that rise during a move can often lead to overspending. To ground yourself, take care of your mental and physical health.
Here are genius ways to save money without spending it.
Save on Moving Costs
Look for ways to save on moving costs to stay within your budget:
- Declutter before you move: Sell or donate items you no longer need to reduce the amount you have to move.
- Pack yourself: Packing your belongings can save you money on labor costs.
- Move during off-peak times: Moving during the off-season or mid-month can be cheaper than moving during peak times.
- Ask a friend for help: Friends are happy about your big move! See if your friends are willing to help you with the move, whether that is packing or driving with you.
My experience moving from CA to WA:
I moved from California to Washington state two and a half years ago, and it continues to be the best choice I could have made. I desired to slow down my life and have more adventures in a new state. The great thing about moving to WA was the non-state income tax. California’s state income tax is one of the highest in the country, so moving to Washington automatically raised my income at the time since I worked remotely.
Here is how to pick the perfect state for you. Click here.
I was unsure of my move date, but I stayed ready in case I saw a great opportunity. So, a tip for you: If you don’t know when you will move but you know you want to move, stay ready and set 12 months as your target date.
Also, I invested in movers because my back was injured, and I knew moving costs were not where I would cut costs. Ultimately, the most significant factor in being able to move was that I increased my income two years before moving and did not inflate my lifestyle. I kept it the same and dedicated myself to paying off $30,000 of consumer debt, built my emergency fund, and focused on moving out-of-state funds. My salary increase was $35,000 a year. Increasing your income is the fastest way to reach your money goals!
You do not want to skip this read:
How to adjust to life in a new state: Emotionally and Financially.
Moving can get expensive, but if you plan for it, you can reduce the costs and plan for the move stress-free. By being proactive, you can enjoy a smooth transition to your new home. Go after that adventure you cannot stop thinking about! I am cheering you on!
Happy moving!
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