Relocating
to another state or a distance city can be emotionally and physically exhausting.
But it’s not only that, we can’t really ignore the financial aspects of
relocating to a new place.
The longer the distance, the more will be the moving expenses, so we need to get our finances right from the very beginning. Now, talking about the monetary matters, most people are concerned about the overall moving costs which includes the packing costs, the price of the movers, the transportation costs, moving insurance etc. But, you need to understand that monetary concerns do not end with you relocating to a new place. But you also have to think of surviving for initial days.
So, when you are moving to another city or state, you need to be financially prepared to face the unplanned challenges during the move and after the move. And especially if you have monetary constraints and you are relocating without a job in hand, things may turn out to be even more difficult.
And if it
sound familiar, then here’s the post that’s a must read for you, as today in
this post I am sharing some important tips about how to prepare financially
when relocating to a new state, city or a country.
Tips to prepare financially for relocating to another state
Constant
monetary troubles can take away your peace. But, if relocating to a new place
is inevitable, you must prepare yourself financially. I am sure, you have
already thought about the pros and cons of relocating, and you certainly don’t want
to end up in financial trouble during or after relocating.
And
therefore, it’s important to handle the monetary matters wisely from early on, so
that, you’ll be able to have a hassle free relocating experience.
And here’re
a few of the best ways to prepare financially before you relocate to a new
city, state or a new country.
Know about the cost of living
Needless to say, if you want to prepare financially before relocating, you got to have a good idea about the cost of living at the new city where you are about to relocate. Housing usually becomes the biggest recurring monthly expense. So the best that you can do is to research well about whether to buy a home or just rent it. Whichever seems better as per your research and financial condition, you can choose accordingly.
Regarding the other
obvious expenses that you may have to bear after the relocation, it will be
wise of you to get a clear idea about the tax situation there. To be more
specific, do your research on the income tax, property tax, sales tax or any
other local tax cases that you may have to bear. The more you are aware of
these things, the better you will be able to prepare yourself financially for
the move.
Make your own budget
It is very important
that you fix a proper budget before you move. And, for that, besides learning
about the cost of living of the new place, you will also have to learn about
the overall moving costs that you will have to bear.
Obviously it is not possible to know about the exact household moving expenses from the beginning, but if you do your research on the standards market prices like that of the packer and mover services and all, then you can actually plan for the moving expenses.
The thing is you need
to have enough money to survive for initial days in the new location. So
planning your moving expenses in advance and preparing expense budget for early
days is seriously important.
Save when you can
As far as the moving
expenses are concerned, you can actually save a lot if you know what to do and
what not to. After all, if you are able to cut off some of the moving expenses,
you will be able to save more for life in the new place after relocating.
One thing that you can
do is, whenever you are short listing the movers, try to shortlist at least 4-5
of them instead of just one. This will give you the chance to talk negotiate
and bargain for a better deal and offer.
The next thing which you can do to save on moving expenses is to get some of the packing done on your own. Obviously, when you hire moving service for packing, they will do it very efficiently. But overall charges will be higher if they do the full service. But, if you are able to manage the packing taking the help of your friends, relatives or neighborhoods, you can actually save some cash.
Second thing that you
can do to save on moving expenses is to limit the items that you are moving.
Take only the essential items and sell or donate other non-essential stuffs.
This will help you
reduce your packing costs and overall moving costs as well. By selling your
stuffs, you may also make some profit from there.
Also, once you have
decided for the move, it will be good enough if you cut off all the other
unnecessary expenses and invest only in essential aspects. This way you will be
able to save a decent sum of money for your move.
Find a job
If you are relocating
to the new place for a new job, then that is fine but if you do not have a job
at hand, and you are relocating with hope to find a job, then you need to have
enough savings to survive the initial days or till the time you manage to get a
job with proper salary.
Now, let’s admit it,
moving to another place without a job is risky. And so, it will be good if you
find a job before relocating. But, if that is not possible, at least research
enough about the job opportunities there and then apply for the jobs, give
interviews if possible through video calling and then relocate.
This is because there
is no guarantee that you will be able to crack in the first interview only. So,
you got to keep trying and applying for jobs there as many as possible.
A secure job is very
necessary for you to stay financially stable in a new city or state, so keep
trying. The earlier you get it, the better for you.
Up your credit score
Most of the landlords check your credit score to see how much reliable you are. Now, you will obviously not require a spotless credit score in order to get an apartment but it will definitely help you to stay ahead of the rest.
If you do not have a
good credit score or if you have not built anything yet, then the easiest way
to get it done is by using a rewards credit card for main expenses. You just
have to be sure that you pay the statement balance in full before the due date
of the billing cycle in order to prevent interest fees while contributing to
your payment history positively.
Review insurance needs
A change in location
can have a lot of impact on your insurance needs. Moreover, employer life
insurance does not stay if you are leaving your present company and relocating
to some other place without a job. So, it is a good thing to consider an
individual life insurance policy to ensure that you and your family is covered
for any worst situation.
Update your bills
It is very rare to find
an apartment that includes WI-FI. In most cases, you will have to take care of
cable, internet and other location-specific charges. So, it will be a good
thing if you make a list of things that are important and keep it with your
budget. This will act as a reminder that you will have to cancel the current
services and make arrangements after shifting to your new home.
Maintain a tracker
If you have some
financial restrictions, it is important that you keep a track of all the
expenses on a daily basis. This way you will also be reminded of how much money
is left for you to spend.
Conclusion
Moving to a new place
has got lot of challenges and getting the finances correct is definitely one
thing. After all there are so many expenses you will have to bear when moving,
starting from fees of the moving company to packing costs to other relocation
costs to the expenses that you will have to bear in the new city or state after
the relocation. So, yes, there are many financial departments you need to
handle and so, for that, proper research on the general moving costs and the
possible expenses in the new place is something you should do. Then
accordingly, you must prepare the budget and do try to do as much extra savings
as possible.
Then, besides these,
finding a job, having good credit scores, reviewing your insurance needs and
maintaining a tracker etc. will be good enough for you to financially prepare
yourself before the relocation. The point is to keep yourself ready to face any
monetary challenges, before, during and after the relocation. The better you
are able to manage things, the smoother things will be for you as far as
expenses are concerned.
So, stay prepared and
enjoy your life in the new place.
