Budgeting for a Move
How to financially plan for a move (and minimize the cost)
Right now, there’s a lot of moving going on. Some are moving in with family in order to save on rent, some living in expensive cities with indefinite WFH plans are moving to cheaper locations, and others are pushing up their plans to move to the suburbs in order to have more space.
Regardless of why you’re moving, it’s never easy to move - and it’s expensive. Most of us don’t actually plan for the cost of moving and even when we do, we grossly underestimate what it will cost. This can cause us a lot of stress and affect our financial goals.
If you are budgeting for a move in the near future, here’s how to do it.
BEFORE YOU MOVE
There are things you can do before your move-in date to make budgeting for a move easier and more streamlined. As you plan for your move, add up any costs associated with these steps. If you need to do more research, that’s okay. You can make an estimate for now or write the expenses down to come back to later.
Only move what you want to keep.
Before you move is a great time to do some cleaning out. Are there any pieces of furniture you want to sell, gift or donate? Why pay to move things that you don't want to have in your new place? It takes time, but a deep clean (Marie Kondo style) of what you have is a great exercise to do before you move. It also makes it a lot quicker and more pleasurable to unpack.
Pack an overnight bag.
This one is a life saver! While you might be sleeping in your new place the same night you move, it can be hard to find the things you need, like your toiletries and pajamas. If you pack an overnight bag in advance, it makes the first night a lot more comfortable and less stressful and allows you to unpack at your own pace. No need to scramble to find your toothbrush or soap.
Pack your valuables separately.
Anything you want to move yourself can be packed up in advance and kept by your side during the moving process. This includes, cash, jewelry, family heirlooms, and luckily, a lot of this stuff isn't that big or cumbersome.
Get free packing materials.
If you are going to pack the boxes yourself, there are some great options to get free boxes and packing materials but you will want to ask in advance. Nearby grocery and liquor stores are throwing away boxes from shipments that come in each week. Ask them if they would be willing to give you their old boxes instead of throwing them out. You can even use old clothes/socks to save on padding like bubble wrap. If you’re packing laundry baskets and the like, you can use them to pack as well. This is also much more green!
Organize parking.
Depending on where you are moving to and from, you might need to get a parking permit for your moving truck or U-Haul to stay in the street. Make sure to do this in advance to avoid costly tickets!
Envision your new place.
This one is icing on the cake but can save you a lot of time, energy and back-aches. If someone else is going to be moving the furniture and boxes for you, it’s helpful to think about which rooms your things will go into in advance so you can pack them together and label them accordingly. You’ll save yourself lots of time by having the movers put the boxes in the correct rooms.
Check if you are eligible for a tax deduction.
If you are moving for work, you may be able to write off the cost of the move. If this is the case, plan to keep all receipts and expense records handy for easy reference.
Other costs associated with a long-distance move.
If you are moving to a new state or across the country, there will be other costs to plan for. Consider if you’ll need to ship your car, pay for additional transportation, or rent a storage unit.
Will you need storage or to double pay rent or mortgage?
Timing for the move is also important. If you don’t have access to your new home right away, you may need to pay to put your belongings in storage or extend payment on where you currently live. If both options are available, run the numbers to see which is most cost effective.
A BIGGIE: CHOOSING MOVERS
Choosing movers, if you plan to use them, is one of the most impactful financial decisions we make when it comes to budgeting for a move. Here are some things to consider when choosing movers.
The cheapest option might cost you more money in the long run.
Cheaper is not always better. If you pay someone hourly and they end up taking much longer than expected, break things, or even damage your new (or old) home during the move, you can lose your security deposit as a renter or incur repair charges as a homeowner. That being said, you don't want to overpay for services either. This is why I put a lot of weight on reviews -- what were other people's experience with these movers?
Do your research.
There’s a great site called Unpackt that I’ve used with a lot of success that allows you to say exactly what you are moving (knowing what you have makes this really helpful!) and provides quotes from multiple moving companies. Once you get the quotes, you can factor in reviews and choose the best option.
Flat-rate can ease your mind.
Some may prefer paying a flat rate for a move rather than paying by the hour. During a previous move where I paid hourly, the movers we hired were moving really slowly and taking a lot of breaks. It’s very strenuous work so I don't blame them but as I watched the time pass by, all I could think about is how much more expensive this would be than the quote! It stressed me out!
Move yourself.
Depending on how much stuff you're moving and how much your friends love you (just kidding!), you might be able to pull off a move all on your own. You can also use a combo where you move some things and leave the furniture to the pros.
If you move yourself, you will probably need to rent a moving truck, pay for gas, and rent equipment like blankets and dollies that will make moving furniture easier.
WHILE YOU'RE MOVING
Here are some things to consider while you are moving that may add to how much you need to budget for the move.
Having someone pack and unpack might be worth it.
Depending on your schedule, how much time you have, and how you are feeling physically, it can be worth it to have the moving company pack and or unpack for you. I’ve moved while seven months pregnant and the three hundred dollars to have the moving company pack and unpack for us was definitely worth it at that time in my life!
They are experts at packing so it also takes a lot less time (they usually come pack up the same day as the move) and are pros at moving things that break easily. They also provide the boxes and packaging materials.
If you have children (or pets), sitters may be worth it, too.
If you’re moving in the same city and have small children, it may be less stressful for everyone involved to invest in a sitter the day of the move. Family and friends may be willing to help out free of charge!
Keep your movers happy.
It can be a really nice gesture to include lunch for your movers in the moving budget. Nothing fancy is necessary. Order some pizza or get some sandwiches.
Know your rights.
Make sure to read the fine print of the moving contract. If something were to break, how would they handle it? Does the moving company charge extra to go up stairs or if they have to use additional boxes? These are things that are helpful to know and plan for before you move.
During a previous move, my roommate and I had a lot of furniture break during the move and the repairs were not done in a way that we found satisfactory. We ended up going to small claims court and were able to get reimbursed for the new furniture.
Don't forget tips!
Tips are usually not included in the quote and final bill for the move. Make sure to include tips in your moving budget so it doesn’t throw things off and so you have enough cash on hand. Here’s a guide for how much to tip.