Are you Open to Relocating?
We have relocated for a job 5 times and have lived in 5 different states. We have many friends and family members who have relocated for job or military moves, or to be near family or to improve their quality of life. For us, it has provided us with many different experiences, helped us appreciate different cultures and customs, and we’ve made a whole bunch of friends that we wouldn’t have gotten to know otherwise! There are so many things to think about with this kind of move and many of these things relate to your finances.
What is the cost of living in the place you are thinking about moving vs. your current home? You can use this calculator to see what salary you would need in other places compared to where you live now: https://www.nerdwallet.com/cost-of-living-calculator
Will your pay change when moving from your current location to the new place? If this is a move with your current company, the job may come with a cost of living adjustment if the new place is more expensive or it may be a promotion to a new position. If you have a spouse, keep their work situation in mind too if they will have to find a new job.
Will the move put you closer of further away from family? Will you be able to drive or will you have to fly to get home for the holidays or family emergencies? If you have small children, will this mean a change in childcare costs?
Will your employer pay for the relocation expenses or will you have out-of-pocket expenses? Relocation packages can include a lump-sum payment, realtor and closing costs for buying and selling your home, appraisals, inspections, legal fees, mileage reimbursement for driving your vehicles, hotel, meals and flights for house-hunting and final move, packing, moving and unpacking of all of your belongings, pet transport and boarding fees, loss protection if you have to sell your home for less than you paid, stipends for cleaning and painting your home, among many other things. These packages can sometimes be negotiable as well. If you have a relocation consultant, making friends with them and your realtors can really help take some stress off of your shoulders.
If you are paying for the move out-of-pocket, think about ways you can spend less on the move. One thing to consider is selling or giving away anything that you will not need or want in your new home. You will feel so much better if you get rid of these things before you move vs. trying to find a place to put them in your new home. Sometimes keeping your old home and renting it out is an option instead of going through the process and cost of selling it. You could also consider renting it furnished if you don’t want to move your furniture.
If you have children, the school system where you are moving is also an important consideration. Will you choose to pay for private school or are there public schools that fit your needs? Are uniforms or other fees required for the new schools? In Louisiana, our public schools required uniforms, which I loved! No worries about what anybody was wearing to school, khaki pants and plain polo shirts for everyone. Will there be transportation available or will you need to drive them to school or pay for before and after-school care? How much are school lunches or will you make their lunches? Does your new state have special college tuition arrangements for residents students with a certain GPA or military families?
Will your new home need work or are there things you will want to buy as soon as you move in? This could be things like appliances, furniture, blinds, flooring, and painting. So many times we have moved and have more rooms than before or certain furniture that doesn’t fit the new space. Brand new or newly renovated houses often don’t come with window coverings, a refrigerator or washer and dryer. You will need to factor these purchases into your budget.
What are the insurance costs and requirements for your new home? Auto and homeowner’s insurance rates vary widely from state to state. Some states with higher hurricane risk have really high rates for wind and hail and some homes are close to flood zones. Even if you aren’t in a flood zone, you may want flood insurance (or earthquake insurance) if you are concerned about the risk. We’ve had flood insurance at several different houses that didn’t flood and sadly had flooding in houses that didn’t have flood insurance. These are all things that you should keep in mind, especially if you are moving from the plains to the beach.
What are the crime rates where you are moving? Would you feel safer within a gated community or having a security system installed? You can use this website to check out crime by zip code: https://crimegrade.org/crime-by-zip-code/
Think about your wardrobe. If you are moving from a colder climate to a warmer climate or vice versa, you may need new clothing and shoes. I remember when we moved from the Chicago area to south Louisiana, we gave away all of our heavy sweaters, coats and snow gear in exchange for more shorts, t-shirts and sandals. We also had to buy new warmer clothes when we moved from Georgia back to Michigan in the winter!
Some people like the adventure and opportunity that comes with living in new places. Some people are required to move because of their job and aren’t really excited about it. Some people like the comfort of staying in the same place forever and traveling to different places. If you are thinking about moving to a new place, hopefully these tips can help you be more prepared financially.
