Moving out of your old home is your first leap toward independence in adult life. However, you must have financial backing to avoid any post-move trouble. There are many complexities involved in leaving your old home and settling into new one. You have to calculate expenses for every phase of moving and even post-move procedures to get better know-how of budget required for move.
Financial preparedness is essential before setting on any moving journey. No matter if you are moving locally or out-of-state, you must have some extra money in bank to serve as emergency fund. These additional finances will facilitate your moving procedure and prevent any limitation due to budget constraints.
We recommend you have at least three month of living expenses to save before deciding to move out. Try to save for other moving and packing expenses separately to stay ahead of budget.
We have helped hundreds of enthusiastic young professionals move out with effective budget plan. That’s why we have compiled some tips to help individuals estimate costs and create budget for successful move.
Evaluate Your Income Status
Finances are backbone of any moving journey. You cannot proceed to do anything if you lack finances to handle task. Assessing income is your first step towards gaining financial clarity for better life and in this case comfortable move out.
Here is how you can fulfill these moving requirements:
- Calculate Your Total Income: Make proper spreadsheet detailing your every income source. These sources can include your salary and freelance work along with any other investments. You can sit down and think about every source from where you are getting money no matter how less.
- Assess Your Earning Potential: Every person should know about their career paths and where this path will eventually lead them. Evaluating your earning potential will assist you in planning for future and having financial clarity for budget planning.
You must have stable income flow for laying strong foundation for your move and future life. Having this consistent income provides safety net to cover daily expenses and unexpected costs without depending on anyone else.
Our experts can help you save some extra money with some practical tips:
- You can with tracking expenses to help identify areas to cut back and save money.
- Aim towards saving at least 10% of your income to have financial backup in case of emergency.
Saving this extra money will specially help in moving procedures to tackle unexpected costs such as packing supplies or hiring moving professionals. You will also need some extra money for allowing yourself transition to new life in smooth manner without any financial burden.
Calculate Your Monthly Expenses
Our experts will help you distinguish between essential and additional expenses while assessing average monthly finances. This will eventually prove its importance to let you prioritize where to spend and where you can save some money for emergency use.
Essential Expenses
These are expenses one need to spend on priority basis to maintain basic lifestyle. You cannot afford to cut short essentials budgets to function properly in daily life. Here is list of essentials you must spend on monthly or daily basis:
- Rent: Renting expenses usually cost fortune to individuals or families. This is usually largest expense costing around one-third of income including rent and other property charges.
- Utilities: Consider spendings you will make on utilities such as electricity and gas along with other bills. These spending are necessary for maintaining comfortable living environment.
- Groceries: You should also allocate good portion of budget for groceries and other household items. Totally avoid any impulse buy and make checklist before going to buy grocery items.
- Transportation: Never forget to keep in view expenses related to transportation. These expenses can include fuel or public transportation fares along with maintenance costs.
Non-Essential or Luxury Expenses
Expenses spend on non-essential items or services to add enjoyment and luxury in your life. These expenses are not required for basic living experience. However, you can always choose to spend on these luxuries if you have enough budget on hand. Expenses such as following are including in non-essentials:
- Dining Out
- Entertainment Facilities
- Unnecessary Subscriptions
- Non-Essential Shopping
You should give proper thought on your financial status before allocating money for luxury expenses. Always look to strike balance between enjoying pleasures and saving for future to have money saved for any emergency move-out journey.
Tips for Reducing Expenses for Moving Out
My Moving Journey with years of experience in moving industry can help you cut down expenses and save for optimal moving out experience.
- Track and Analyze Your Spending: You can use finance applications or excel spreadsheet to keep close eye on any extra spendings.
- Cut Back on Unnecessary Expenses: Never overspend on non-essential items without giving it a thought. You should trim down your restaurant visits and cut down entertainment budget to save some extra bucks.
- Automate Your Savings: If you find it difficult to save money from income, consider to automatically transfer funds from your account to separate saving account.
Adopt these small changes in your spending habits to take big steps towards your financial stability. After taking into account your income and expenses, start estimating money you need to have in bank for smooth moving procedure.
Estimate Moving Costs for Smooth Journey
Moving out might give adrenaline rush to adults making their move towards independence. However, this process comes with some heavy expenses for which you have to save some money beforehand.
Customers all around USA pay on average two thousand dollars for local move and five thousand dollars for out-of-state moves. Rates can vary on basis of weight of belongings and distance of move. You should estimate expenses needed for moving supplies and hiring professional movers to optimize budget for good moving experience.
Moving Supplies
When it comes to moving, right supplies are essential for smooth packing and transportation process. You need to take into account types of boxes and other packing supplies required for safe packing of valuables. Packing supplies such as bubble wrap and packing paper are necessary for each type of move.
If you are moving some heavy furniture or appliances, spend on additional paddings and covers to keep them protected over long distances. Always remember to factor in labeling cost as well.
Hiring Professional Movers
Though our experts recommend to book moving truck when you are short on budget, hiring professional movers has its own perks. You should dig deep into option available in market and choose budget-friendly one after comparing rates. Consider factors such as distance of your move and type of belongings before picking any mover. Online reviews can help you choose the best one fitting to your moving requirements.
If you require any additional services or insurance coverage, discuss related payment condition beforehand with movers to avoid any hidden charges. Make informed decision after estimating every expense related to moving procedure. You also have to keep an eye on expenditures that will arise on completion of move.
Consider Additional Expenses Before Moving Out
When planning moving out journey, you have to consider additional expenses that arise during or after transition to new place. From furniture and household items to security deposits, we’ll help you prepare for every financial obligations.
Furniture and Household Items
Your new home may require some furniture or other upgradations to improve quality of life. These upgradation can include new sofas or bed along with some decoration items. It is possible you may face need of spending on kitchen or other home appliances. You can also spend some extra budget on window covering to give aesthetic look to new place.
Rent and Security Deposits
Rent can take approximately one-third of your income. Landlords can also demand two to three months of rent as security deposit to cover in case of any damage to property. That’s why you need to have at least three-to-six-month expenses in hand to give yourself chance to settle in new place.
Utility Setup and Connection Fees
Always factor in costs for setting up new connection and other setups at your place. Contact utility providers in new neighborhood to get familiar with connection fees and activation charges for services like electricity and gas. If you require internet services, compare different plans to choose one best suited to requirement and budget.
Create Moving Budget after Considering Every Factor
Now that you have extensive knowledge of every factor affecting your moving out process, utilize this information to create perfect moving budget catering every need. Decide if you need professional movers or you can handle move with just moving truck. You can also cut down on packing supplies without comprising on quality of process.
National average for residents of USA is around one thousand and seven hundred dollars for local move. You can take it as reference point and avoid exceeding this budget for optimal move. If you are planning on long-distance move, keep your budget under national average of four thousand and seven hundred dollars. These reference points will help you make budget decisions on merit.
Final Thoughts
If you still have any problem while calculating moving expenses, you can seek help from moving professionals at My Moving Journey. Our experts have extensive experience in optimizing budget for every kind of move. Take advantage of skills of our professionals to set perfect budget for smooth moving out experience
