Romantics at heart believe that love is the driving force in our universe (and even beyond it), while confirmed pragmatists swear that money is what makes the world go round.
But regardless of which standpoint you happen to support, if you are facing an imminent interstate or local relocation, then you must clearly realize that the dollar bills in your savings account will serve as the fuel for your residential move.
And running out of fuel in the middle of a life-changing house-moving process would be really bad, wouldn’t it?
Moving experts are unanimous that one of the first and most important things that every shipper of household goods should do is to create a moving budget. In fact, budgeting your move should precede all other relocation tasks that you will have to take care of before Moving day.
But why exactly is making a moving budget so important?
Read on to learn how to make a budget for moving out.
Why should you create a moving budget?
There are 5 major and valid reasons why setting up a budget plan for moving out has proven to be a vital prerequisite for a smooth house-moving experience.
You will have a much better idea of how many financial resources you will need to complete each relocation phase successfully.
The creation of a preliminary moving budget will enable you to determine whether you have saved up enough money to perform the move at all.
By monitoring the entire budgeting process, you can respond quickly and adequately if a moving task exceeds its set financial limit.
Once you have successfully moved to another city in the country, you will be in possession of a working moving budget which you can use to perform a thorough post-relocation analysis of what you did wrong and what you did right.
You can use the invaluable results of the in-depth budget analysis to either execute a much better move from a financial point of view at a later stage in your life or give good cost-saving tips to friends who are facing a move themselves.
The task of setting up a budget is so important that every good moving checklist should include it in its list of things to do before moving out.
The truth is that without a moving budget by your side, you may happen to lose sight of exactly where your money is going through each of the three main relocation phases: the preparation stage, Moving day, and the immediate post-move period.
And as a result, such poor control over your finances may also lead to unnecessary overspending – something you must avoid at all costs.
Now that you are familiar with the indisputable benefits of making a moving budget, let’s elaborate on how to go about setting up one.
New technology
Ask your loyal robot calculator to help you create a moving budget for the ages.
It’s much easier to create a moving budget by using modern technological advancements. All you need is your favorite electronic device and a suitable software program, preferably a spreadsheet application (Microsoft Excel, for example), and you’re all set to begin the necessary calculations.
You can use the built-in formulas in the application to increase the functionality of your moving budget planner, or even download a free moving budget template from the Internet to save time.
Old-school technology
If you’re not a great fan of high-tech gadgets, you can easily set up your relocation budget using a piece of paper, a pen, and a good calculator. In order to facilitate the task, you can even consider purchasing a bookkeeper’s record book from the nearest office supply store, but a few lined notepad pages will work out just fine.
No matter which method you choose for budgeting your interstate or local move, the main entries in your moving budget checklist should include moving company expenses, self-moving expenses, vehicle transportation expenses, immediate post-move expenses, and unexpected expenses.
Read on to learn more about each type of relocation cost. The following detailed moving budget checklist will give you some great pointers on how to budget your money when moving out.
Moving company expenses
Contrary to popular belief, your decision to hire a professional moving company for your long-distance relocation can easily prove to be the cheaper option when you add up the most commonly forgotten costs of moving out on your own, such as packing materials, rental costs of a moving truck and equipment, fuel, insurance, road tolls, food and lodging, and so on.
But let’s first discuss in detail the possible relocation costs when using the services of a professional mover.
Be sure to request in-house estimation from at least several movers in order to have a preliminary idea of how much to budget for when moving out. When the visual inspection is completed by the corresponding moving company’s representative, you must ask for a written moving estimate.
Here you can learn the major differences between the two types of moving estimates (binding and non-binding), but basically, you are strongly encouraged to go for the binding one although you will probably be charged for its issuance.
Here are the things to consider when comparing the received moving cost estimates:
Weight and distance
The two most important factors when the overall moving price is being determined are the total weight of the household items that will be moved and the distance to the destination city.
Moving companies vary by cost and have different methods of calculating the same relocation cost – some movers tend to charge less for weight and more for distance, while others do just the opposite.
Take a look at the price differences per pound or kilo of each mover’s written estimate but remember that for interstate moves, the distance to your new home is just as important for determining the true cost of your move.
Learn from the estimates how much you will be charged per mile or kilometer and, just to be sure that you’re not being blatantly overcharged, check the actual relocation distance against the one stated in the movers’ offers with the help of our accurate moving distance calculator(see the screenshot below).
Did you know that the precise distance between Los Angeles and New York City is 2776.98 miles?
Additional insurance
When you agree to the terms and conditions of a particular mover and sign the moving agreement (Bill of Lading), you will get basic limited liability protection for your goods.
That basic coverage comes for free but is very rarely a good option simply because its coverage rate of 60 cents per pound per household item is practically non-existent. In other words, you would be entitled to receive $18 as compensation if your new 30-pound flat-screen TV got damaged or went missing during transportation.
And this is exactly why you should seriously consider purchasing additional Full Value Protection for your valuable possessions when you’re creating a moving budget, either through your moving company or directly from a third-party insurance company.
With proper moving insurance, your moving company will be liable for any possible damage or loss of your possessions and will be required to reimburse their replacement value.
The moving cost estimates you receive should contain detailed information about the additional services needed to complete the moving job. Needless to say, each requested additional service will cost you extra and should be added to your moving budget.
The most common accessorial relocation services are:
packing – pack whatever you can on your own to lower your moving costs,
unpacking,
preparing major household appliances for moving – refrigerators, freezers, washing machines, dishwashers, etc.,
disassembling and re-assembling large furniture pieces – beds, wardrobes, dressers, desks, sofas, etc.,
temporary storage and delayed delivery of your items – for example, if your new home is not yet ready for occupation.
Contact your chosen moving company and get a clear idea about the extent of the extra services (if any) and the corresponding charges if they are not specifically mentioned in the estimate.
In some cases, your moving out-of-home budget may be further burdened by the presence of extra hidden charges and fees, such as
flight charges – carrying household goods up or down the stairs,
long carry charges – if the distance from the entrance of your residence to the moving truck exceeds a certain set limit,
afee forhandling bulky items – pianos, pool tables, hot tubs, etc.,
a cancellation fee – in case you decide to go with another moving company at the last moment unless you notify your mover a certain period in advance; get familiar with the company’s cancellation fee policy,
fees for extra stops – you will be charged extra for any additional pick-ups or drop-offs along the route,
a travel fee – the time the moving crew needs to reach your home from their office, usually one extra hour of labor; travel feels are typical for local moves.
Self-moving expenses (DIY costs)
Renting a moving truck is only one of numerous hidden and not-so-hidden DIY expenses to take into account when setting up your self-moving budget.
There are many costs to weigh before you decide that self-moving will ultimately turn out to be the cheaper option.
Moving by yourself is usually the preferred house moving method if you’re moving locally, have reliable friends to help you out, and do not have too many household possessions to pack, carry, load, unload and unpack.
Your budget for moving out on your own should definitely include the following typical self-moving expenses:
Truck rental. Together with fuel, this, of course, is the most obvious one of all moving costs when moving by yourself. It’s very important for your budget (and time!) that you select the right size of moving truck – a vehicle with a smaller capacity will make you leave some of your possessions behind or make more than one trip, while more space will cause additional and highly unnecessary financial strain. If you can’t figure out which moving truck size to select, always go for the bigger one. Refer to our Truck Rental Guide for more information about the subject.
Moving equipment. Besides the truck rental cost, another expense to budget for when moving out is the necessary moving equipment. An appliance dolly is a must (you can rent it from a moving company), but consider adding up the additional expenses for furniture pads and moving blankets as well.
Hidden costs. Some hidden relocation costs that most DIY movers don’t account for until it’s too late include: pre-move car servicing, road taxes and tolls, food and lodging along the way, packing materials (moving boxes, clean packing paper, bubble wrap, tape, hand tools, etc.), and even possible hiring of extra professional help.
Risk of injury. The risk of personal injuries reaches its peak on Moving day, especially if you don’t have much experience in the house-moving process. Unless you are willing to include costly medical bills into your DIY moving budget, make safety your top priority, be extremely cautious when lifting and moving around heavyweight items and get professional relocation assistance if you get stuck.
Lost time. Due to inexperience, insufficient helping hands, or ignorance of time-saving moving tips, you may end up losing too much time when preparing and executing a self-move. And while time equals money, it’s not easy to assign a price tag on your time and register the value in your moving budget. Nevertheless, time is a fundamental factor in any relocation instance and should definitely be taken into account when important decisions are being made.
So far, so good. But what about your loyal vehicle? Naturally, your car transportation costs should also be calculated into your long-distance moving budget.
Car shipping services. If you have made up your mind to ship your vehicle to another state, then take into account the cost of the car shipping service you’re going to hire. Contact a reputable auto transportation company and request a cost estimate so that you can adjust your moving budget accordingly. Also, having your car shipped to another part of the country (or even abroad) means that you’ll be flying to your new home, so don’t forget to add the flying costs to your relocation budget as well.
Driving to your new home. As mentioned above, even a fun road trip to your new home will require money for gas, pre-relocation servicing of your vehicle, lodging, and food, as well as some extra dollar bills for emergency situations on the road (see below for unexpected moving expenses).
Don’t be too quick to winterize your calculator just yet, as there will be a number of immediate post-relocation expenses to include in your house-moving budget.
Unfortunately for you, the list of things to budget for when moving out does not end when your household items are delivered to your new house or apartment.
There is always a score of immediate costs that you need to include in your house moving budget right after the truck departs and before your first paycheck kicks in, so make sure you have allocated enough money for:
Rent, mortgage payment, deposits. Paying your monthly rent or mortgage should be one of your first worries when moving into a new house. If you’re a renter, expect to pay your landlord a security deposit (usually amounting to up to one entire rent) which you are supposed to get back when you’re moving out (provided that you leave the place in the same condition, of course). Some utility companies might also require a deposit considering that you’re the new face in town, so make room for such surprising deposits in your moving budget planner too.
Furniture and appliances. It will take some time before you furnish your new home completely and entirely to your good taste, but there may be some essential furniture pieces and kitchen appliances that you can’t do without even for a few days. If you’re leaving behind truly fundamental furniture and kitchen appliances such as a bed, dresser (wardrobe), refrigerator, washing machine, cooking stove, and the like, then, willy-nilly, you’re going to have to stretch your relocation budget further and plan sufficient cash for the essential home furnishing process.
Groceries, cleaning supplies,and other essentials. Prepare for a very long shopping list soon after you move to another city – groceries to keep your unpacking energy at a high level, cleaning products to clean thoroughly your new home, and a great number of other essentials to provide the normal living conditions you’re accustomed to.
Car registration, insurance, and paperwork: Your budget for moving out of state must also include the costs of registering your vehicle in the new state, renewing your driver’s license, updating your home insurance, and other paperwork-related expenses that you’re going to need to take care of before your life gets back on track.
This moving budget checklist won’t be complete if we fail to mention the second most important rule to follow when you think about how to make a budget for moving out (see the number one rule below).
Rule # 2 of every house moving budget is to set up a contingency fund. Or simply put, you should also plan for unexpected expenses in order to get out of such unforeseen financial burdens unscathed: your car could break down on your relocation trip, you might be asked for large deposits from the utilities companies or you could get hurt during the heavy lifting (God forbid) and be forced to seek medical assistance. The truth is that there is no way of knowing what might happen before it does (hence the name unexpected), but being at least reasonably prepared for possible contingent situations remains nothing less than a prudent financial decision.
Spend money on renting a moving truck? Ha! I’d rather move my house on my back!
This brings us to Rule # 1 when considering what to budget for when moving out: always (or at least whenever possible) plan for a bigger house moving budget than what the preliminary numbers are telling you. And although this budget-making rule does seem painfully obvious, it still serves as a reminder not to set your relocation budget too low, or else you run the risk of feeling the pinch of the house-moving process.
While setting your moving budget, your calculations may show unambiguously that your finances won’t be enough even if you use up your savings account to the last penny. In this case, you will still have 3 alternative options left to move on a tight budget:
Professional Movers and their services — a cost which is based on the amount of items to be moved and the distance you are moving. Professional moving fees usually include packing your fragile items, 2 to 4 experienced professionals to move your items, the moving truck and gas, vehicle insurance, pads, dollies, loading, unloading, and the time and fees associated with 2 people driving your items to your new place.
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Professional Movers and their services — a cost which is based on the amount of items to be moved and the distance you are moving. Professional moving fees usually include packing your fragile items, 2 to 4 experienced professionals to move your items, the moving truck and gas, vehicle insurance, pads, dollies, loading, unloading, and the time and fees associated with 2 people driving your items to your new place.