Whether you've done it a million times or maybe this is your first time, moving is an exciting and stressful time! In addition to packing boxes and buying new furniture, there are various financial considerations to be made. We've done the "heavy lifting" (pun intended) to help identify what you'll need to know before signing your new lease or buying a new home in a new city or state.
Set Your Budget
Create your budget for your projected housing expenses. The cost of living varies from region to region so it’s vital to know what your new salary will afford. When you calculate your monthly take-home pay from your new job, make sure to consider your new state and local income taxes.
Consider how much it will cost to move. Costs for shipping, gas, packing supplies, movers (if used) pile up quickly. Once you’re at your new place, keep in mind you’ll also incur deposits and utility setup costs. Make sure you have a good cash cushion in case any unexpected things come up during your move process. Use a home cost calculator if you're not sure what the total cost of a home will be (this includes property taxes, homeowners insurance and maintenance if purchasing a home).
If you’re moving for a job, check if your new employer covers any relocation costs. Employers often offer relocation assistance/reimbursement for services like packing, movers, home selling assistance, temporary housing, and house-hunting trips. Make sure you know what’s provided!
Weigh Your Options- Rent or Buy?
If buying a home is an option financially for you, you should consider whether it makes more sense to buy or rent. This can depend on your budget, the local housing market, your family size, and your expected time frame for staying at this job or in this particular city.
Lastly, even the best laid plans come with unknown risks and you'll want to make sure you're adequately protected. Renters insurance is an inexpensive way to purchase coverage for your personal property as well as liability coverage. If you got rid of some things in your move, or purchased new, nicer things, you’ll want to revise your policy so you’re appropriately covered. If you own a car, a new zip code also means a different premium. Update all your coverages to make sure you're getting the right coverage.
Once you get there, be patient! It takes time to acclimate to a new job or city. A survey found that 72% of people say it takes 2-3 months for them to settle into a new job, and feel comfortable showing their "true self", and it can take equally as long to settle into your new neighborhood. Make sure to get to know your transportation options to allow you to easily get around! If you take these steps, you should be off to a great start!
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