The most important thing that you have to consider while relocating is your moving budget. You have to plan it well because all your moving process depends on it. Preparing your financial plan is a main and first thing that you should handle after your decision to move is final. It may seem difficult and time-consuming, but it is necessary in the long run. Once you know your budget, you will know which services you can afford. Here are some steps that can help you create and organize a moving budget.
How to set a moving budget
In these days, making a budget list for your move is very easy. There are many software programs and applications that you can use. You can also find more tips on the moving process on our website. The point is that list is simple and easy to read, so you will better manage your expenses. The application that has spreadsheet will be more efficient. Microsoft Exel will be very suitable for this task. There are also many templates that you can download if you want to save time.
If you don’t trust the modern technology and you prefer to have the paper in your hands, then go “old-school”. You will need a notebook, good calculator and a pen.
Whatever way that you are using, make a list that will be appealing to your eye. Highlight the most important parts of your budget plan with different colors and make as many bullet lists or tables as you need.
The main entries in your moving budget checklist should include:
- Moving company expenses
- Self-moving expenses
- Vehicle transportation expenses
- Immediate post-move expenses
- Unexpected expenses
Moving company expenses
If your moving budget allows it, you should always hire a reliable moving company. Especially for a long distance relocation. That is the best way to avoid moving scams.
Expenses of the moving company should be the first item on your moving budget checklist and it should contain:
- In-house estimation – To grasp how much money you will need for services of the moving company, you should request an in-house estimation. At least three moving companies should give you their estimations. The overall moving price will be determined by the total weight of the inventory that you are moving and the distance to your new home. Overall, the estimates of several moving companies should be very similar. If one is significantly lower than the others, it’s usually too good to be true. Be careful – a cheaper offer can be tempting, but it can also be a moving scam.
- Insurance – In the estimated costs, you will get basic limited liability protection for your goods for free. It sounds great, but when you read the fine print you will see that basically, you’re not secure at all. A basic coverage rate is 60 cents per pound for one household item. That means that you will receive an $18 compensation for a 30-pound TV if it gets damaged while moving. That is why you should seriously consider purchasing an additional full value insurance.
- Additional services – Aside from the basic moving, moving companies provide a lot of other services. Of course, they involve extra charges. The most common additional moving services are packing and unpacking, disassembling and re-assembling large furniture pieces, temporary storage etc. If any of the additional services seem appealing to you, get a clear idea about their costs and remember to put them into a moving budget plan.
If you are moving locally and you have friends eager to help you, you may decide to move on your own. If you don’t have household items to pack, carry, load, unload and unpack, that maybe isn’t such a bad idea. Still, you should know that it will be nerve-wracking and time-consuming.
Here are the typical self-moving expenses that your moving budget plan has to have:
- Truck rental – The biggest issue and the biggest cost of self-moving is the transportation of your belongings. That means that you will have to rent a truck. You have to count in the fuel costs and the size of the truck that you need. If you rent a smaller vehicle that can’t accommodate all of your stuff, you will have to make two trips. That increases the cost of transportation too. A bigger truck costs more, so calculate what size of truck you actually need.
- Moving equipment – When moving on your own, you need to include necessary moving equipment into the budget. Furniture pads, moving dolly, moving blankets, boxes, duct tape, hand tools, plastic wraps are all additional costs that you are likely to forget to put in your moving budget plan.
Vehicle transportation expenses
If you are shipping your car to another state, you’ll have to hire a car shipping service. When you find the company that you can trust, request a cost estimate, so that you can adjust your moving budget accordingly. Shipping your car means that you have to take another form of transportation to your new home. Be sure to add the cost of the ticket to your moving budget as well.
When you are moving to another state, you should also include the costs of registering your vehicle in the new state and renewing your driver’s license.
If you are taking a road trip to your new home, you should add the costs of the gas, food and tolls to your budget plan. You should also bring some extra money in case of emergency.
Immediate post-relocation costs
Rent, mortgage payment, deposits – these are all items that you should include in your moving budget.
Paying your monthly rent or mortgage will be the first financial worry when you move into a new house. That is why it is crucial to include them in your budget plan.
Groceries, cleaning supplies, and other essentials should also be on the list. Once you relocate, there is a big shopping spree that awaits you, so be sure that you have left enough money for that.
Since the moving is a complicated process, there could be some unforeseen expenses. So, when planning a moving budget always plan it a bit bigger than what the preliminary numbers are telling you. That way, if something goes wrong, and you will have enough funds to fix it.
If everything goes smoothly, then you will have some extra bucks in your pocket. It’s a win-win situation.
It is only reasonable to be prepared for possible unexpected situations, and you will be much relaxed when you know that you have some space for sudden financial troubles.