If you’re getting ready for a big move, you may be apprehensive about the finances associated with such a significant milestone. As you will have to cover some pretty hefty costs when moving, it’s essential to make sure you prepare your finances for your upcoming move. Consider the following tips to prepare yourself for moving to a new city:
1. Research the city’s cost of living.
Moving to a new city can take a significant toll on your bank account. Start researching the cost of living in your new city of choice. By getting an idea of how much food costs, how expensive your commute will be, and the cost of rent, you’ll be able to start putting money away for your move.
Even if the city you move to has a lower cost of living, the cost of travel, accommodations, and other expenses associated with moving will have a considerable impact on your wallet. Though these costs are unavoidable, you can prepare for these expenses by saving up.
2. Make a budget.
When planning a move, experts recommend putting together two separate budgets: one for moving and one for all your expenses after settling in. The moving budget should include costs associated with the move. Everything from travel and accommodations to the price of a moving truck and packing supplies will fall under this budget.
Your other budget should be an estimate of the monthly expenses you will have in your new home. Though you’ll need to continually update this budget as you get accustomed to living in a new city, it’s best to put a plan together before your move.
3. Start building your emergency fund.
Your emergency fund will be more critical than ever in your new home. After getting through all the expenses associated with your move, you’ll find that unexpected costs keep coming your way. Though you may have a budget in place for life after your move, it’s good to have a sizable emergency fund just in case.
4. Check your banking.
As you get ready for your move, remember to check your banking to make sure that you’ll be able to access your bank account in your new city. If you’re currently using a local bank, you will likely have to pay additional ATM fees anytime you try to withdraw money in your new city.
5. Pay down debt.
As you prepare to go to a new city, be sure to tackle your debt before making a move. As you will have several new expenses to pay after your move, it’s best to get ahead of your payables before the journey. Start paying down as much as you can to make sure you cover these costs before you move.
6. Sell unwanted items.
When moving, it’s inadvisable to bring all your belongings with you. To cut back on moving costs, try to pare down any items you no longer want or need. Selling items like furniture and electronic equipment are good ways to make some extra cash ahead of your move.
Eliminate some of your moving-related stress by preparing your finances before a move. Keep these tips in mind as you save more money for this next step in life.