How to Plan a Moving Budget?
The most important thing that you have to consider while relocating is your moving budget and whether to hire affordable movers or not. You have to plan it well because all your moving process depends on it. Preparing your financial plan is the main and first thing that you should handle after your decision to move is final. It may seem difficult and time-consuming, but it is necessary for the long run. Once you know your budget, you will know which services from affordable movers you can afford. There are many costs associated with relocation. From budget movers to home expenses. So, planning your moving budget is quite important. By correctly planning your budget you will be able to assess exactly what you can and what you can’t afford. Miscalculating your budget, on the other hand, can land you in a pretty bad situation. Running out of money in the middle of relocation is not only stressful but can be catastrophic. Also, knowing exactly how much you can spend on budget movers and everything else will allow you to adjust your plans, and even find ways to gather more money for your relocation. When you know that you are on a tight budget in advance, you will also be able to find ways to save on some things, like packing supplies.
Like we have already said, there are many expenses during relocation. You need to take into account not only professional movers but many other things as well. You need to rent or buy a home in your new city, support yourself until you get on your feet. And possibly invest some money into renovating the place. And even then, there are many more expenses. You need to find a quality, yet affordable movers, buy packing materials and arrange for your personal transport. Also, many of us ask us how much do you tip movers, but that really depends on you. And planning your moving budget with all these variables can be tricky. If you don’t plan it correctly, you might end up in a situation where you can’t afford everything needed. So, take your time, follow our tips, and your relocation will be quick and easy.
Moving is going to cost you money no matter how much you try to cut back, so the best thing to do is to figure out exactly how much you’ll be spending then you can see where you might be able to cut costs. This guide will take you through the steps to create your moving budget, and will provide all the information you need to determine exactly how much you’ll be spending to move from your old house to your new home. Here are some steps that can help you create and organize a moving budget.
- Plan your moving out costs
The first thing on your list should be to calculate how much will it cost you to move out from your current home. It might seem like it doesn’t cost anything but as budget movers, we know it costs. But those costs can actually be a big part when planning your moving budget. Go around your home and see if any damages need fixing. Holes in the walls, stained carpets, or torn drapes. Otherwise, you might end up losing your security deposit. This, again, is one of the expenses that need to be considered. Then take a good look at your outstanding bills. You will have to pay for all of them before you move out. So, make sure you include them in your calculations.
- Consider a DIY move
If you are moving locally and you have friends eager to help you, you may decide to move on your own and without cheap movers. If you don’t have household items to pack, carry, load, unload and unpack, that maybe isn’t such a bad idea. Still, you should know that it will be nerve-wracking and time-consuming.
Here are the typical self-moving expenses that your moving budget plan has to have:
- Truck rental – The biggest issue and the biggest cost of self-moving or moving without professional movers is the transportation of your belongings. That means that you will have to rent a truck or a van. You have to count the fuel costs and the size of the truck that you need. If you rent a smaller vehicle that can’t accommodate all of your stuff, you will have to make two trips. That increases the cost of transportation too. A bigger truck costs more, so calculate what size of truck you actually need.
- Mileage/gas – Ask the rental agency how many miles to the gallon you can expect from the van or truck that you are renting. If you are moving a far distance, find out the cost of fuel along your route. You can do this by using the AAA fuel calculator.
- Moving equipment – When moving on your own-without cheap movers, you need to include the necessary moving equipment into the budget. Furniture pads, moving dolly, moving blankets, boxes, duct tape, hand tools, plastic wraps are all additional costs that you are likely to forget to put in your moving budget plan. When you hire professional movers, they have all of the items necessary for your upcoming move.
- Insurance – Before you purchase insurance, contact your credit card companies to find out if you are covered under their service. It could save you some extra money. If you are not covered, make sure you include an insurance fee. When you hire budget movers, basic coverage insurance is usually included.
- Extra equipment rental – If you are moving a lot of stuff you may want the conveniences of a dolly, loading ramp, mattress and furniture covers, and so on. Before you add this item to your budget, ask the truck rental company if these extras are included in the fee.
- Incidentals – Add in an extra contingency amount just in case the price of gas goes up or if you end up needing to make some extra stops along your route. It is always better to build extra costs upfront.
- Consider the cost of professional movers
Professional movers are probably going to be one of the biggest expenses when planning your moving budget. So, you should first try and find affordable movers in your neighborhood. Without compromising on their reliability. Once you do, make sure to get a quote and add that to your moving expenses. Make sure you ask your budget movers about any additional costs that you should expect. Honest professional movers will tell you that straight away. While others might bury it in the fine print. So, make sure to pay attention and ask everything professional movers. Also, you should look at moving insurance options and add that to your moving budget. Also, many of you are asking how much do you tip movers. Tipping your cheap movers is not required but it is a nice thing to do. So make sure you account for that as well.
If you are hiring a moving company – professional movers, there are a few expenses you need to think about and work into your budget.
- Moving company fee: This fee should include fuel charges and labor. Ask for estimates from three competitors and even if you have not decided on which professional movers you will choose, add the highest quote to your budget.
- Additional insurance: If your possessions are worth a lot to you, you may need to add consider adding additional insurance to your total moving costs.
- Extra services: Some budget movers may charge extra for preparing appliances or moving a piano or something else. Ask the professional movers for quotes if you feel you might need additional help.
- Extra charges: Depending on the distance you are moving, you might tack on an extra charge. These may include accessorial charges, expedited service charges, flight charges, long haul charges, long carry charges, and shuttle service.
- Claims/damage costs: Assume you may have damage. You do not need to include an amount here, but to be safe, add in a 5 percent contingency rate based on the total moving company fees.
- Packing costs
After hiring professional movers, packing is the second biggest expense that you will have. And probably the most complicated one. If you don’t hire professional movers for packing too, first, you need to buy moving boxes and packing materials. This one is difficult to know for sure since it’s hard to know exactly how many boxes and materials you will need. Then you need to account for the time that you will take off work to pack everything properly. And finally, if you call your friends or family to help you, you should include the cost of dinner or drinks when planning your moving budget. A much simpler way to go about calculating packing expenses is to hire professional movers for packing your belongings too. That way, you will have a single bill for packing your entire household. And you won’t have to spend hours packing everything.
It’s not always possible to predict exactly how much you’ll need in terms of packing supplies, but at the very least you’ll want to consider what you’ll need when you’re setting your moving budget with or without cheap movers. While it might be difficult to determine how much packing supplies you need, it is a good idea to add in an amount anyway. If you are not hiring professional movers, he supplies you will likely need to include:
- Boxes: Determine the number of moving boxes you will need. If you cannot find these for free, then there is a cost involved.
- Wrapping materials: You will want to protect your breakables with protective bubble wrap or newspapers. If you are hiring cheap movers, they will provide you with that.
- Packing materials: You will need markers or labels to mark your moving boxes, which will help you keep organized. Do not forget packing tape to seal your boxes.
- Mattress covers/padding: If you are using professional movers, they usually provide these supplies at no cost, but double-check to be sure.
- Costs to settle in
Once you’re in your new place you’re almost done with moving-related spending, but not quite. Be sure to remember that you’ll probably have additional costs after move-in, too.
- Utility set up: Some utility companies charge a fee to set up service.
- New furniture and household items: Make a list of the things you know you’ll be needing for your new home, such as a shower curtain, new couch, window treatments, etc. Take a little bit of pressure off your moving budget by separating these items into those things you need right away and those things you can wait to buy until later.
- Add unexpected expenses to your moving budget
Since moving is a complicated process, there could be some unforeseen expenses. So, when planning a moving budget always plan it a bit bigger than what the preliminary numbers are telling you. That way, if something goes wrong, and you will have enough funds to fix it. If everything goes smoothly, then you will have some extra bucks in your pocket. It’s a win-win situation. It is only reasonable to be prepared for possible unexpected situations, and you will be much relaxed when you know that you have some space for sudden financial troubles.
Moving is expensive, that’s for sure. It can be overwhelming to see the list of all of the things you’ll need to spend money on for your move and affordable movers, but remember that not all of the above costs are going to apply to you. Read our tips on cutting costs for your move to keep your overall spending down, and don’t worry—while it will be a lot of spending all at once, it’s just for a short period of time. So if there’s a way to save some money and there is, it’s worth the time to uncover the tips and tricks to keeping it in your pocket instead of giving it to the wrong moving company, wrong professional movers, rental agency, or the government’s piggy bank. Here, we gave you the top ways to save money on your next move by budgeting, learning how to negotiate with your professional movers and what can be claimed on your taxes – it’s that simple. And if you need the best budget movers in town- call Pomona Movers and get your free moving quote today!