How to budget your moving expenses
Moving house while trying to save some money may seem like an oxymoron; let’s not kid ourselves, moving can be an expensive undertaking whether you are purchasing or renting a property. Purchasing a home can set you back quite a bit especially when legal and closing fees are involved. Renting a house or apartment is not cheap either; most landlords require that you make a two month security deposit before moving in as well as you may also be required to pay for your own background check.
Just thinking about how much money one has to spend on moving is enough to make you want to stay put and make the best of where you currently stay. But it really does not have to be that way especially if you get down to some good old budgeting. With the economy forcing most to tighten the grip on their wallets, this is one good way that you can see your money and know exactly how to spend it.
If you are not in a hurry to move from where you currently stay but have intentions of moving someday, it would be wise for you to start a savings account specifically for moving. For those purchasing a house, while the cost of your house may be covered by the mortgage banks, remember that you also have to save for other things that you would need for the house. These essentials may include the cost of paint; you may also need to pay for lawn care as well, not to mention you have to save money for the movers or may even need to install a security device. You can start as soon as possible to save towards the above mentioned essentials.
For those hoping to rent you should be saving for your rental deposits, money to pay the movers plus have a little left over for emergencies.
Now here is where the budgeting comes in. With the money that you decided to save each month, you can now go forward with hunting for your new home. For renters, if you have managed to save at least $7,000, you should be looking for a rent that is ten percent of what you save especially if you want to be able to pay your bills and have surplus. Looking for an affordable rent does not mean that you have to compromise your taste and safety; if you have to spend another hundred dollars or two to get the kind of home that you want and in your desired neighborhood, then by all means you should do just that.
You may also want to get quotes from those involved in the move including the movers, or the rental truck for self move, as well as the rental deposits for the homes you may be interested in. Once you gather this information, you can use these quotes against what you have saved to determine if you would have enough left over to go forward with your move or if you would have to continue saving some more.
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