Sometimes it feels like starting a new story of life by starting fresh in a new place. There are a lot of questions popping up in your head if you are planning to move out of the state. How Much Money should I Save to Move out of State? Everyone is always saving money for some big picture of life like booking for a vacation or buying a new house.
Pros and Cons of Moving to a New Place.
- Personal Growth
- Career Opportunity
- New Friends and Colleagues
- A Chance to Start Over
- Finding yourself
- The chance to purge
- Leaving Friends and Family
- Moving is Expensive
- Uprooting Children
- Acclimation and Fitting In
- Culture shock
- Cost of living
These are the things to consider before relocating to a new state.
Without wasting much time lets get to the over view of things which will exactly tell, How Much Money should I Save to Move out of State?
As per the Zillow’s rent Calculator most of the landlords ensure that your rent is not more than one-third of your gross income(Before tax). So, if you make $9000/month you are likely to get a apartment that is $3000/month or less.
This thumb rule is to ensure that you have enough money to spend after paying your rent bills, just to ensure you are not overspending. A proof of income is a must and most of the landlords will ask for a income statement before extending the lease agreement. If you are starting a new job then you can ask your new employer to provide a letter verifying your income. Apart from this if you cannot manage both of the things then you might need to arrange a co-signer or you might need to pay few months rent in advance.
Every lease agreement requires the tenants to pay a security deposit equivalent to a minimum of one months rent. This security deposit paid is refundable at the end of your lease agreement, i.e. when you move out. After a final apartment inspection and you pass this inspection.
The application fee varies from landlord to landlord as it covers most of the processing fees and background as well as the credit check.
The fee ranges from $20 to $100.
You would have to be very lucky to get apartment directly from the owner and there is no broker interaction in between. They usually charge around one month’s rent or 15% of the annual rent on the lease agreement.
If you are planning to move to New York, then embrace yourselves to a absolutely brand new lease experience as the leasing and the rules and regulations are totally different. The NYC riders and EPTA come into picture. The NYC apartments not only rent out fast but some of them can only be rented out through a real estate broker. These brokers can meet up to your criteria and find you one of the best apartment. If you do not find a no-fee apartment then you might need to pay a few extra bucks.
Long distance moving can be really costly if you are literally travelling halfway across the country. While preparing your moving budget keep the following things in mind:
Cost of Transportation:
- Hiring full time long distance movers
- Rent a portable storage pod
- Drive yourself
You can find long distance movers.
Start getting your quotes over these and then decide whichever suits you the best according to budget.
You might be surprised to know the number of boxes and bundles of packing paper that would be required to get your home sweet home boxed up and ready to move.
While you can get some of these things from your house and get some free stuff from the local stores. After all this you might still need to take a break and buy some stuff.
Transporting your vehicle
This can be a great excuse to have a solo road trip or a road trip with your family along the way or would you like to have this wrapped and moved to your new place to start a fresh job? Either way ensure that you would have to consider the factor of transporting your car or motor bike to the new place.
Well, this could be a two way situation. You can either find a landlord that covers all your utilities or you have to pay them yourself on your own. The utilities usually are electricity, gas, water, cable, and internet access which on an average costs in a range from $100 to $200 a month depending on your regular usage. Additionally these require a deposit to pay in advance to utilize these.
Travelling to office in your own car or either taking public transport to reach your office, the cost depends on where you live (location). This can be anywhere in between $20 to $100.
Public transport is usually cheap but if you own a car then you need to rent out a parking spot which can be costly.
You never know what is coming your way, you will need to find a roommate when you reach the new place. Life is full of surprises, and hence you should keep aside $250 to $500 for day to day emergencies, such as car repair, AC repair, Internet, Cable TV, stolen laptop/mobile, etc. The last thing you don’t want to do is spend all your paycheck in your emergencies. So, make sure you have emergency saving’s account in place.
It is strongly recommended to have a renter’s/ homeowner’s insurance when you move to a new place. It would cost you around $150 – $200 (The price varies from place to place, type of dwelling,) but this is the small price of money that can assure you your piece of mind. These type of insurance can come very handy in cases of floods, breakdowns, or natural disasters.
How to budget for a move
So, exactly How Much Money should I Save to Move out of State?
Save your tax refund
You have spent all these years spending your tax refund on fun activities like vacation or shopping stuff.
But this time make sure you utilize it for your move.
Take on a part-time job
Take on a small job and start saving some bucks for your relocation.
Rent out a spare room
Put your extra bedroom (or your whole house, if you have somewhere else to stay) on a home rental website.
Start a side business
Turn your hobbies into a source of income, there are various platforms that let you make money online.
Babysitting, lawn mowing, tutoring, and house cleaning are other local ideas which can come in handy.
Have a garage sale
Get your old stuff on a garage sale, Old clothes, get rid of all the excess clutter.
In just a day or two of sales, you can make extra cash.
Keep All Receipts
If you are relocating for work purpose then you might get all your amounts reimbursed from your company. Keep any receipts related to your move so you can deduct them when tax time rolls around.
It’s time to close your old bank account. When you move to a new state, you might find your bank no longer has local branches or ATMs. Out-of-network ATM fees typically cost about $3 each time you use a cash machine.
The less you have, the cheaper it is to move. Consider every item you own and ask if you really want to take it with you.
Another pro tip: If you donate your items and itemize your taxes, you can claim the contribution as a tax deduction.
If you’re moving long distance and want to choose your new property in person, you’ll have to visit your new city before the move and stay there for several days in order to find a place that meets all your requirements and preferences. In this case, you’ll have to provide for the trip to the city, as well as for meals and lodging.
Relocating is not so easy, it always brings new challenges. We tried to cover all the basic expenses in this guide and hope it helps you relocating.
Get a basic estimate and plan your trip accordingly and start saving.
Hope we answered all your queries regarding : How Much Money should I Save to Move out of State?