Set Your Moving Budget With This Guide
Moving can be an overwhelming experience that can become expensive without proper planning. When creating a moving budget, there are many factors to consider when determining the final cost.
On average, a local move can range from $300 to $1,500 depending on the move’s size. Long-distance moves can cost on average $2,500 to $5,000 depending on the move’s size and the distance.
Creating a moving budget is the best way to start administering your finances as you plan your move. You'll want to weigh the pros and cons of doing it all yourself, hiring muscle for the heavy lifting, or leaving it all in the hands of a professional moving company. Here’s what you need to know.
Create a Moving Budget Template
There’s no need to use software or moving calculators to create a moving budget template. Whether you choose to write it down on a sheet of paper or translate this template into a spreadsheet online, both will make creating a budget easier.
Instructions for setting up a moving budget template:
Add the following categories at the top of your page: Category and Cost.
Create three main sections on the first column: Professional Movers, Self-Moving, and Other Expenses.
You’ll fill in the prices for each of the moving items listed below under the appropriate section.
Create a row entitled Subtotal under each section.
Add up all the professional or self-move costs using a calculator or the appropriate formula available in your spreadsheet and place this value in the Subtotal row.
Create a new row under Subtotal entitled Contingency and multiply the total by at least 5% (though if you want to be super safe, double it). Then add that to your subtotal.
Calculate Your Moving Costs
Your moving costs will be different whether you choose to work with professional movers or plan the move yourself. When using the moving budget template mentioned above, you’ll be able to see where you can cut back on expenses or which option fits your budget best.
Working with Professionals
While it may seem more expensive at first, working with moving professionals can save money and time in the long term. Most movers charge by the hour, so you can identify areas where you can save time (and money) by doing some of the work yourself (i.e., storage, packing and prepping furniture ahead of time).
If you’re working with professionals, add these moving expenses to your Professionals section:
Moving fees/rates
Packing services
Moving insurance
Specialty item packaging services (moving pianos, safes, artwork etc.)
Hidden costs (damages/claims, meals, tips etc.)
Unpacking services
Moving Yourself
Moving by yourself might seem like an easy way to save money, but it’s not free. If you’re moving on your own, add these moving expenses to your Self-Moving section:
Truck rental
Gas
Moving insurance
Furniture insurance
Additional moving equipment rental (ramps and dolly)
Packing materials (boxes, tape, covers etc.)
Other Moving Expenses to Consider
Depending on what you need, add additional costs into your contingency total or break these costs out into a separate category.
Car shipping
Car maintenance
Lodging
Home cleaning
Storage unit rental
Insurance
Cost to move from/to storage facility
Child care
Pet care
Track Your Expenses
Some moving expenses are tax deductible so keeping receipts organized will eliminate some headaches at tax time. One expense that may be tax deductible is gasoline. Fuel will be a big part of any moving budget, the longer the distance, the more expensive; moving calculators that estimate gasoline needs can help.
You'll want to adjust the household budget for changes in income that might be necessary after relocation. Getting set up in a new city or state can come with unanticipated expenses. The cost of registering vehicles in the new home town may be different from what you're used to budgeting. Business licenses may be expensive to transfer or they may be not needed at all. Sales taxes in the new town may make an unexpected difference in everyday purchases.
Commuting costs may be different in the new location due to differences in the cost of gasoline, auto expenses, toll roads, and the distance traveled.
Factor in Children & Pets
Establishing a nurturing environment for the kids may incur some unanticipated expenses or variations to the current budget. Things to consider are the cost of schools and daycare centers in the new area. Fun things like dance lessons, sports participation, the zoo, the movies, and other favorite activities may take a different bite out of an established budget.
Pet registration fees and veterinary expenses will affect the household budget, too, so don't leave them out.
Moving your aging parents into your home
Many families today are taking in aging parents as permanent additions to the household. The move out of the parents' home and into yours may affect your own budget in ways you'd never expect. You'll want to think about how this change to the family structure will affect your budget, especially if someone needs to quit a job to become a stay-at-home caretaker of if outside medical care is necessary.
Routine medical costs vary by location, too, and could affect the established budget of your household as well as your parents' income. Their retirement income may be affected so any deficits here will need to be addressed.
The decision to move is a big one. Once the decision is made, questions will seem to lurk around every corner and behind every unpacked box. The logistics can seem monumental and surprises are sure to happen. They'll be more manageable when you're armed with as much knowledge as possible and you're working a well-conceived plan that anticipates as much as possible.