Recently, Americans saw a 3% increase in the number of people moving. Surveys show that in most cases, people were moving to denser and more expensive metropolitan regions. As such, if you're looking to live in a different area to look for better opportunities, to change up your environment, or maybe to be closer to important people in your life, then you need a relocation budget.
How Much Does It Cost To Move?
On average, Forbes estimates local moves cost between $300 and $1,500. Moreover, moving rates were estimated to have increased by 15% just last year because of the current labor shortage. Long-distance moves can reach up to $5,000 depending on the move's size and distance. For example, East Coast to West Coast moves cost less on average than the opposite route.
Moving companies warn customers that during peak season, May to August, prices increase because of the demand. To provide perspective, a move from New York to Texas involving a truck carrying 714 cubic feet of items can sum up to $5,500 in 2021, showing an almost 20% increase in price from the previous year. For many people, this amount isn't readily available for an immediate move, which is why they will have to do some budgeting beforehand.
Managing The Move
Aside from helping you stay organized, mapping out a timeline for your budget can help you plan for saving and spending early on. Begin planning a moving budget eight weeks before your planned move and map out all the possible costs per category. To demonstrate, write down how much the cost would be for categories like moving fees, packing fees, or insurance. At the end of your list, add a 5% contingency cost to help you cover possible price fluctuations or emergency costs.
Also, decide whether you're doing the move yourself or working with moving professionals. While moving yourself can save you some money, it may cost you more in time due to the planning required. For example, if you do decide to go this route you need to know what vehicle you will use for the move. An article on U-Haul price estimates by AskMoney, emphasizes the need to evaluate the type of vehicle you need before renting it. That means appraising your furniture and choosing between an 8' pickup truck, a 9' cargo van, or a 10' truck, and factoring in all the other costs. On the other hand, while hiring a moving company seems more expensive at first, you may be able to save time and money in the long run.
Outside of the physical move, you need to budget for leaving your new home and entering your new location. Two to three weeks before the move, start having the utilities set up at your new residence if this hasn't been done so already. You'll also need to hire the services of electricians or plumbers to help you disconnect from your current home. These will incur additional costs, so make sure you account for these situations in your budget.
Earning Some Money From Your Move
Moving could provide you opportunities to earn and make back some of your expenses with the New York Times suggesting that you hold a garage sale if you plan on moving in the near future. This way, you can get rid of the items you're not planning on bringing with you, while also earning some cash that you can add to your moving budget.
Alternatively, if you're already at your new home but still want to recoup some of your expenses, you can make use of online platforms instead. As explained in our listicle on top "Real Estate Technology Trends", buying and selling via websites or social media is a great way to network and make sales. Similarly, you can also use these digital mediums to promote goods that you may not have been able to sell off prior to your move. You can still think of this as a clever part of your moving finances since the money you make here can help you pad any further moving expenses like transporting last-minute items or replacing any lost things.
Take our advice and be financially prepared for your move. The more accurate your budget is, the smoother the moving process will be.