How Much Money to Save When Moving

So, you feel like it’s time to move someplace else and open a new page in your life. Thrilling as the idea may be, you should give it a good thought before making the decisive step.

Moving out of your parents’ home may give you the freedom and independence you’ve always wanted; moving to a new city or state may present you with exciting new opportunities; moving to a more prosperous part of the country may ensure your financial stability; relocating to a safer, greener, and friendlier area may bring you greater peace of mind and improve your emotional well-being; and so on, but for all this to work, you need to feel emotionally ready to part with your old life and financially comfortable to afford the relocation.

Costs add up quickly when moving house and you need to be able to cover them without difficulty in order to have a smooth and stress-free relocation experience.

But how much money do you need to move out? How much to save before moving out of state?

It all depends on the living costs in your new area, the amount of items you’ll have to purchase for your new place, the size of your move and the distance to your new home, of course, but you can still get quite an accurate idea of how much money to save for moving out – all you need to do is figure in all the related expenses.

Housing Expenses

Housing expenses are likely to present your biggest financial challenge when you move to a new home.

1) Rent or mortgage

If you decide to rent a house or an apartment in your new area, you’ll have to provide for:

• The first month’s rent – you’re highly recommended to save enough money for at least three months’ rents (six, if you don’t have a steady income yet – you never know how long it will take to find a good job and secure your financial stability) before moving out;
• A security deposit – the required security deposit is usually the same amount as a month’s rent. You should be able to get your money back when you move out (in case you have kept the place in good condition), but this fact is of little help when renting a place;
• Management fees – a charge for a background and credit check (usually about $50), a charge for hiring a broker to help you find an appropriate home (up to a month’s worth of rent), etc.

Good to remember: If you’re moving long distance and want to choose your new property in person, you’ll have to visit your new city before the move and stay there for several days in order to find a place that meets all your requirements and preferences. In this case, you’ll have to provide for the trip to the city, as well as for meals and lodgings while there.

If you decide to buy a new home, you’ll have to pay the mortgage and closing costs.

Either way, make sure your monthly rent or mortgage does not exceed 25%-30% of your disposable income – otherwise, you may experience serious financial difficulties. To determine the maximum amount you can afford to pay in rent/mortgage you can either divide your monthly income by three, or your annual income by forty. Be careful not to go over that number, however bright your future prospects may be.

2) Utilities

Needless to say, there will be various ongoing payments you’ll need to take care of in addition to the monthly rent or mortgage – such as the utility bills. Utility costs vary depending on the area where you live and the size of your home, of course, but you can expect to pay about $200 a month for gas, water, electricity, cable, internet, waste collection and removal, etc.

It is advisable to call the service providers in your future area before your move and ask them for an estimate of what your monthly bills are likely to be, so that you can get a better idea of your total monthly expenses.

Good to remember: Many utility companies require a deposit (about $100 per company) and/or a connection fee ($5 to $25) to turn on a service.

See also: How to transfer utilities when moving

3) Renter’s/Homeowner’s Insurance

It is strongly recommendable to get a renter’s/homeowner’s insurance when you move into a new home. It will cost you about $150 a year (the price varies by location, type of dwelling, and number of belongings), but this is a small price to pay for ensuring your peace of mind – proper insurance coverage will come very handy in the unfortunate event of a flood, fire, break-in, or another accident or natural disaster.

4) Furnishings

The fewer furniture pieces and household appliances you move, the lower your moving costs will be. (Click here to learn more about furniture moving.)

On the downside, you’ll have to spend more on furnishing your new home. After all, you can’t do without a bed, a wardrobe, rugs, curtains, tables, chairs, couches, lamps, and various other essential furniture pieces. The same goes for basic appliances – a fridge, a kitchen stove, a washing machine, a microwave, a coffee-maker, etc.

These things can be a huge cost (it is estimated that the average person spends about $1,000 to furnish a new place), so you need to be as thrifty as possible – at least in the beginning. Visit thrift stores and garage sales, ask friends and family if they have anything they can give you for free, look for discounts – just make sure you spend an amount you’re comfortable with.

Also, remember that you don’t need to buy everything at once – end tables, bookshelves, small appliances that are not used on a daily basis and other not-too-essential items can be purchased gradually.

Alternatively, you may want to consider renting a fully or partly furnished house or apartment – this will take a considerable financial burden off your shoulders during the first months after the relocation. It may be worthwhile, even if the rent is somewhat higher.  

Other expenses will add up to your total housing expenses, as well – maintenance costs, property taxes, etc. Make sure you have the financial means to cover them all before you embark on your relocation adventure.

Moving Expenses

Quite obviously, if you’re moving house, you’re going to have some moving expenses as well. They may be anywhere from a few hundred dollars to several thousand dollars, depending on the distance to your new home, the size of your move, and the moving assistance you need.

DIY Move

Performing a self-move is your cheapest option, provided that you have a pickup truck (or one of your friends or relatives has a large enough vehicle you can use for free to transport your goods to your new home) and reliable friends who are willing to help you load and unload your belongings.

In such a case, you’ll have to pay only for the gas and for some refreshments for your friends, so your moving expenses will be negligible. This scenario, however, is only possible when moving locally.

If moving a greater distance (or if you don’t have free access to a large vehicle), you can rent a moving truck and drive it to your final destination yourself. If you can do all the packing, loading and unloading on your own (or with the help of friends and family), this moving option is also quite affordable.

Have in mind though that in addition to the truck rental cost you’ll have to pay for the fuel, vehicle insurance, road tolls, parking fees, meals and lodgings on the way (if applicable), etc.

Besides, you’ll be responsible for driving a large moving truck for hours on end, not to mention the great risk of damaging your belongings while taking them in or out of your home and loading/unloading them without the required know-how and specialized moving equipment.

Don’t forget about the packing materials either – even if you find some strong cardboard boxes for free and use whatever suitable materials you have in your home (crates and buckets, suitcases and bags, old sheets and towels, newspaper, etc.) instead of professional packing supplies, you’ll still have to buy some specialized packing and wrapping materials (packing tape, bubble-wrap, etc.).

Good to remember: You are strongly recommended to get quality packing supplies for your more delicate and valuable possessions.

Professional Moving Assistance

Hiring professional movers for your relocation may be costlier, but in most cases, it is worth it:

• When moving long distance;
• When moving a large household;
• When you have nice furniture and other valuable items to relocate;
• When you don’t have the time and/or the energy to take care of all the arduous moving tasks;
• When you want to ensure a safe, efficient and trouble-free relocation.

The experienced professionals have specialized moving equipment and the required know-how to perform a smooth and safe relocation, so that you can rest assured that there will be no serious problems during the moving process and your belongings will arrive at your final destination in perfect condition.

When moving locally, you’ll be charged on an hourly basis. When moving across the country, the relocation costs will be based on the total weight of your items and the actual distance to your new home. So, a small full-service move within a city can cost you as little as $200, but a cross-country relocation may soar up to $6,000. You can find more detailed information about the average moving cost here.

To get an accurate estimate of your moving costs, however, you need to obtain moving quotes from several reputable moving companies and compare their offers. Make sure you choose the highest quality services at the best price.

SEE ALSO: How to choose a moving company

Remember that in addition to your moving costs, you will have travel expenses as well – and may also need to pay for the shipment of your vehicle.

Living Expenses for a Couple of Months

When moving house, you need to have enough savings to cover your living expenses for the first couple of months – you want to feel confident that you’ll experience no financial difficulties until you get your life back on track after the relocation. So, make sure you have the means to provide for:

• Food – You’re likely to eat out more often during the first weeks after the relocation (until your kitchen is ready to be used and you can find the energy to prepare your meals amidst all the laborious post-relocation tasks). Besides, you’ll need to fit your new kitchen with all the basic necessities – stocking your fridge and your pantry for the first time will cost you a few hundred dollars at once. Therefore, it’s a good idea to have about $500 – $1000 set aside for food (according to surveys, the average person spends about $150 per week on food);
• Miscellaneous essentials – You’re going to need a variety of knick-knacks around the house (light bulbs, paper towels, a dish rack, etc.), as well as toiletries, cleaning supplies, personal care items, and plenty of other small things that don’t cost much but can add up to a considerable amount when you need to get them all at once. It is recommendable to set aside about $500 dollars for such commodities;
• Transportation – Transportation costs can run up to a few hundred dollars a month, depending on the location of your home and your means of transportation, so they are not to be underestimated either.

Of course, you should also have enough money for clothes, medications, and all other personal expenses you’re going to have shortly after the relocation.

Emergency Fund

To ensure your peace of mind, you need to have some contingency money in case anything goes wrong. Make sure you have at least $500 – $1000 for unpredictable situations:

• Unexpected costs – a stolen laptop, a broken window, a malfunctioning appliance, etc.;
• Unforeseen moving expenses – extra services you didn’t think you would need (re-packing, long carry, shuttle services, storage-in-transit, etc.) or last-minute changes of plans (you decide to take that old rocking chair with you after all; your new home is not ready for moving in on the pre-agreed day due to circumstances beyond your control; etc.) may result in additional moving expenses. It is advisable to have 20% more than the amount stated in your moving estimate for such unplanned costs;
• Difficulty finding a job;
• Medical emergencies, etc.

To sum it up, it’s a good idea to have an emergency fund with at least three months’ worth of expenses when moving house.

So, how much money to save before you move out? The numbers can vary considerably depending on your particular circumstances, but $4,000 should be enough when you’re moving locally. And $10,000 is a good amount of money to have saved up before moving out of state.

How to Save Money for Moving Out

Wondering how to save enough money to move out? There are some clever tricks you can resort to in order to give your moving budget a considerable financial boost:

• Sell everything you don’t need or don’t like anymore. Sort out your belongings and put aside everything that won’t fit into your new home or into your new lifestyle, as well as any duplicate items, outgrown items, and items you don’t like. Then, organize a garage sale or sell your no-longer-wanted possessions online to generate some extra income prior to your move. As an added bonus, you will be able to reduce your moving expenses (the fewer items you relocate, the fewer packing materials will be required and the smaller the total weight of your shipment will be);
• Use gift cards and coupons. Cash in credit card reward points and gift cards and use any vouchers and coupons you might have in the weeks prior to moving day to keep some more money in your pocket;
• Borrow items you need only temporarily instead of buying them to save a few extra pennies;
• Tighten your belt as much as you can. Avoid buying things you don’t really need, little luxuries you can do without, expensive gifts, and other similar budget drainers. Eat at home, walk or bike to the places where you need to go, refrain from shopping sprees, and look around for discounts – even small changes in your spending habits can make a big difference;
• Work overtime or take an extra job for several months;
• Find efficient ways to cut down on your moving costs – find an affordable moving company, move off-season, pack your items yourself, consolidate your shipment, etc.

RELATED USEFUL READS: How to cut down moving costs; How to move with no money

Last but not least – make sure you don’t overspend after the move! Be realistic about what you can afford to buy and try to spend within your income. Your financial status will steadily improve over time and soon enough you will be able to enjoy your new life without any financial struggles and restraints.

Are you still wondering how much money to save before moving out of state? The more, the better!