• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Why is it important to budget for a move?

If you don’t have a moving budget, it can take a surprising amount of time to financially recover from a move. And if you go over budget, you could end up dipping into your savings or emergency fund to finance unanticipated expenses.

Aside from the upfront costs, it can take several months for the average American to recover financially from a move, the Lemonade survey finds, with nearly half of baby boomers (49%) taking more than four months to recover financially. And 14% of baby boomers take more than 13 months to recover financially (compared to just 1% of their Gen Z cohorts).

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

Estimating your moving costs

A moving budget should factor in the cost of movers (or rental vehicle, if you’re not hiring professionals), as well as packaging materials, moving insurance and other fees.

You can expect moving costs to be higher if you have a larger home, which is typically the case for baby boomers. Empty-nest baby boomers own 28% of three-bedroom-plus homes in the U.S., according to a Redfin analysis, versus just 0.3% of Gen Zers with kids.

A moving estimate is typically based on the number of bedrooms and labor costs. For local moves, you’re typically charged by the hour, so you can get an estimate by multiplying the hourly cost of the movers by the number of hours you expect the move will take.

For long-distance moves, many moving companies charge a flat rate, which can help with budgeting (but keep an eye out for extra fees in the contract). However, if your long-distance move isn’t actually that far — say, less than 100 miles — or if you’re moving out of a small apartment, an hourly rate may be more cost-effective.

Tips on how to budget for a move

If your movers charge by the hour, you can save money by packing up your belongings ahead of time. If you don’t plan on using professional packing services, you may still have to pay for the cost of packing materials, which can quickly add up.

Keep an eye out for hidden fees or surcharges, such as fees for stairs, oversized items and the distance between a home and their vehicle. You may also be asked to pay extra to move specialty items, such as a piano or grandfather clock.

Even if you decide not to hire movers, you’ll still need a moving budget. You’ll have to rent a moving vehicle and pay for gas. If you’re relying on family or friends to help you move furniture, you might want to factor in the cost of their help — such as paying for pizza and beer after the move.

For a long-distance move where you pay a flat rate, you’ll still need to account for the cost of your own travel, including accommodation and meals. And, if your new home won’t be ready when you get there, you’ll need to budget in the cost of temporary housing and storage.

Once you’ve come up with a moving budget, you might want to top it up with a buffer for any unanticipated costs, such takeout or tips — so you can enjoy your new digs with peace of mind.

Sponsored

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with Advisor, you can find a trusted partner to guide you every step of the way

Advisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Vawn Himmelsbach Freelance Contributor

Vawn Himmelsbach is a journalist who has been covering tech, business and travel for more than two decades. Her work has been published in a variety of publications, including The Globe and Mail, Toronto Star, National Post, CBC News, ITbusiness, CAA Magazine, Zoomer, BOLD Magazine and Travelweek, among others.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.