How to Prepare Your Finances Before Moving

Moving to a new city or country often costs more money than most people prepare for financially. There are expenses you need to consider beyond just the moving company and rental deposit/purchase price. Getting your finances in order is necessary to avoid getting stuck in deep water without a life jacket. And here’s a list of how you can better prepare your finances before you make the big move.

Start A Spreadsheet

Start with creating a spreadsheet that lists out all the expenses you will need to prepare for in relation to the move. This will include the cost of purchasing a house or the cost of the monthly rental, deposit fees, utility bills in that area, average cost of eating out, entertainment expenses, insurance payments, and cost of schooling if required for you or any children. Knowing in advance what you can expect to pay will help you to have realistic expectations and be able to create a proper budget.

Don’t Forget About Loan Payments

Few people move with a clean debt record, so you need to take into consideration your loan payments and how they will be impacted by the new expenses. Make sure to include these into your spreadsheet so you will have enough money each month to properly allocate to your debt.

Consider Hidden Costs

It’s often the hidden costs associated with moving that will creep up on you when you least expect it. Budget for any potential home decorating, painting, maintenance costs and renovation costs in advance.

Create A Safety Net

The easiest way to protect you from financial disaster is to ensure you have at least 3 to 6 months of savings as a safety net. That way you have enough money to hold you over until you find a new job or if any unforeseen circumstances arise.

Job Hunt Early

Start your job hunt before you move. Set up appointments with potential employers to happen soon after you relocate. That way you will have little time between jobs. You should also consider looking at options for a part time job, this can help to fill any work gaps and keep your finances in order.

Cut Costs On The Move

Moving can be awfully expensive if you don’t plan properly. Review the spreadsheet to see how much you can afford to pay for a moving company. Then try to cut those costs down as much as possible. Perhaps use friends, family, or discount movers to save and put more money into your safety net.

Moving is an exciting experience, but it often costs people thousands of dollars more than they had expected.  Be prepared and plan in advance, and you will have little to be concerned about.

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