How much money should I save for moving to another state?
By Julie Homsey
Aug 19, 2020
Read about what to consider and how much it can cost to move to another state in this post.
If you and your family are planning a move to another state, saving towards your move and resettlement is a smart idea. But how much do you need to save? Interstate moves cost a lot more than locale ones. On average, most long distance moves will be about $3500 or more. Your move may cost more or less than the average. Here are the expenses outside the move itself to consider when you start saving for a move to another state.
You’ll want to save two months living expenses, including utilities, food, transportation, housing, insurance and car payments. Start with a deep dive what your estimated monthly expense will be. Because utility rates and usage vary by state, you’ll need to research local rates and identify what will be different from your current usage; if you’re moving somewhere hot, budget more for AC, and if you’re moving to a cold weather state in the fall, budget more for heat. You should have an idea on how much you can afford for mortgage or rent, but property taxes vary widely by state and county. Also, add in food, gas, car payments, insurance and spending money for leisure.
Take the time to figure out one time or yearly fees or expenses you will have to pay once you arrive. You will need to get a new license, license plate and possibly a city sticker for your vehicles. In some cities or towns you may have to pay a fee to have water service turned on. You might also include estimated costs for improvements you intend to make to a new home; that should include the cost of permits for renovations and surveys for outdoor improvements.
If you’re like most people, you will replace some furniture after you move. Identify what pieces you’re likely to buy immediately after the move and budget for them. Online window shopping lets you easily estimate costs. Also think about other costs in setting up your new home, including window treatments, rugs, and organizational items you find you’ll need for the garage, laundry, pantry or basement.
Finally, figure out the cost of the move itself. Moving to a new state will cost more than a local move and is based on the distance and what you move. If you want to have your items professionally packed, you should budget for that, too. Consider saving towards the moving company’s valuation plan, which covers potential damage to your belongings while in transit. Costs will vary between movers, so you’ll want a couple of estimates to get an idea of price ranges.
Now that you have an idea of what types of expenses to save for, you’ll have an amount to begin saving towards. Taking the time to research how much money you’ll need will give you a sound financial base for your move to your new state. When it’s time to schedule your move, we can provide an instant quote or set up a virtual survey from a local agent.