Creating a Moving Budget
Formulating a budget is an essential component in planning your move. When you’re moving incremental costs abound, and those small costs start adding up very quickly. Many people consider the costs associated with hiring their moving company, but people will often forget to take into account the other costs associated with the relocation process. You will want to make a budget so as to avoid not having enough money once you moving day comes. Consider these extra costs:
- Moving Insurance: The most basic form of moving insurance that you can acquire is Limited Liability insurance. This is the minimum amount of coverage required by law for moving insurance. With limited liability insurance, if you experience damage to your items in the course of a move, you will a paid at a minimum fixed rate; usually something like $.30 per pound. If overall your items are worth more than that, you still take a loss, but at least you will get something. The second type of insurance is the Added Value option. This is a type of coverage in which the actual value of your lost or damaged item is covered in full. If there is an incident, this kind of coverage will cover any item declared in the insurance contract, and will guarantee payment based on the full dollar value of that item at amount of cost required to replace it. Finally, an option that you might want consider is get a separate, third party insurance policy to cover you. To do this, you can contact an insurance provider and purchase coverage for your move. This is absolutely necessary if you are moving impossible to replace items such as antiques or high-end furnishings.
- Costs Associated With Leaving Your Current Location: If you are moving because you have sold your current home, there will inevitably be repairs that need to be made before you go. These things take money, so be sure to budget them in to your plan. Plan ahead for this because you might find yourself needing to contract the repairs out. You might have budgeted for doing the work yourself, only to find that it is outside of your grasp. And if you’re moving from a rental, cleaning will be something which you will have to plan for.
- Hidden Costs: If you are moving into a new rental, there are likely all kinds of hidden costs associated with that transition. You might need to pay security deposits, pet deposits or take out renters insurance if you have a pet (pet-friendly properties will often neglect to inform you of this in order to attract tenants). You should also know about hidden fees which your mover charges. The better moving companies won’t charge frivolous fees, so do your homework and find a reputable mover.
You will also need to budget for moving supplies. Make sure to include plenty of room in your budget for this, and make sure to budget in enough on hand cash for the moving day. This will cover incidentals such as last minute items you’ll need to rush to the store for, food to feed the friends and family who are helping you and tips for the movers and drivers.