I abhor moving. In fact, it is one of the things in the world I hate most. But moving sometimes is necessary (and some people don't hate it as much as I do). If you do plan on a move, here are some things to keep in mind to make it easier.
The average American moves 11.7 times in his or her life. Moreover, in 2019, almost 10% of the population in the United States moved; that’s over 30 million people. On one hand, it is a joyride that includes scouting for a house, choosing furniture, and deciding colors. On the other hand, when not planned correctly, it might mean facing unplanned financial difficulties that add a bitter taste to the mix.
Whether you are looking for new horizons to start fresh in a new place or moving because of your job, here are the answers you’ve been looking for. Read on, organize well, and keep it a beautiful moment. A dream without a plan is a dream, but if you budget correctly, you can turn it into a reality.
Addressing The Current Financial Situation
According to the U.S. Census Bureau, the most common reason people move is to look for a new or better place to live. Therefore, the first step in the journey is to determine the available budget to invest in a new place. This is paramount; otherwise, it might be like walking blindly into a financial trap. Moreover, as you might know, budgeting is all about planning ahead. Thus, adding a new line to the budget used monthly for “moving money” is, perhaps, the best way to make moving effortless and more enjoyable.
Renting or Buying?
In the second quarter of 2021, the Census Bureau reported a homeownership rate of 65.4%. Those looking forward to joining that number need to make an important calculation before setting sail in that direction: consulting a mortgage pre approval calculator. This is, without a doubt, the best place to start. You can choose from the plethora of options online and estimate the mortgage plan to apply to.
That being said, a great anticipation step before facing the calculator is having all the information ready to estimate how much money can be spared monthly to face it. As a pro tip, grab pen and paper, write down the income and the spending for the last month; this way you’ll have a better scope of what goes on with your money. Furthermore, it is crucial to avoid the common mistake of overlooking small expenses.
Letting the Past Go
Once the place to live is chosen, the next phase is to get everything ready for moving. In this vein, it is important to leave the past behind and get rid of all the unwanted things that will not make it to the new home. Thinking of every item in terms of the cost of moving it versus replacing it or leaving it behind is key. A great option is Facebook Marketplace which has reported over a billion users. Someone else might need the items people on the move are trying to leave behind; it is a win-win situation.
Those who aren’t so tech-savvy might want to go old school and organize a yard sale. Also, if you feel like you want to pass it forward and help others, you’ll find plenty of options available for that, regardless of your location. Not to mention, in 2017 people donated over $410 billion to make this a better world. Helping those in need is something people moving might want to do especially with things like blankets and old clothing.
Employer Involvement
When moving because of job opportunities, future or current employers might be involved in paying the expenses. If so, they might do it in one of three ways. First, with a relocation package comprising a lump sum to cover the basics of moving. In this scenario, any extra costs must be paid for by the person moving. Second, they might use a reimbursement method and pay back the expenses after the move is done. If this is the case, keeping all receipts is a must. Finally, the company can choose to hire a third-party company to take care of the move for you.
In case no employer is involved, you have to choose your own path. Statistics show that only 33% of the people moving in the US hired professionals to do it; 45% just rented a moving truck, and 22% decided to go completely DIY. In each case, it is important to budget properly, making an effort not to overlook minimal expenses such as food for your friends helping you move, and even meals on the road.
Pro Tip: Set an emergency fund aside for any surprise fees that might come up in the way. It can also be a game-changer when you reach your destination and need some time to settle down in your new home.
Moving is a moment filled with emotions such as that bittersweet taste of leaving what is known behind in the search for a prosperous future. Following the steps above, planning correctly, and doing it right is the best way to ensure it’ll be a happy moment with no unpleasant surprises. Dream big, budget properly, and move to the house you’ve always wanted.