How to make a moving budget

In the long list of overwhelming moving stressors, money is second only to the fear of the unknown.

Probably, that’s so because you have the power to control most of the other aspects of the moving process (you can choose an appropriate new home, you can hire experienced and reliable movers, you can pack your belongings as you like, oftentimes you can even set a convenient moving date) but you can do little to find extra money for your expensive relocation endeavor.

Your only options are to manage your finances as wisely as possible and to take advantage of as many cost-saving techniques as possible.

While you may not have a lot of money saved up before your move and not all the ways to cut down on moving costs may be applicable to your case, a smart financial strategy will always work in your favor – and the first and most important step in any good financial strategy for moving is to create a moving budget.

Read on to find out why you need a house moving budget and how to make yours realistic, efficient, and truly helpful.

Why should you make a budget for moving out?

A good moving out budget will help you avoid financial surprises and financial difficulties during your relocation.

• You will get an accurate idea of how much money you will need to successfully complete each and every moving task – and how much your relocation will cost you as a whole;
• You will be able to assess your financial situation and make informed financial decisions for your move (what moving option will best suit your needs and your budget, what kind of moving services you can afford, which of your items are worth moving to your new home, etc.);
• You will be able to plan your finances in such a way that you can easily cover all your relocation-related expenses;
• You will be able to track your expenses and respond quickly and adequately whenever a moving task exceeds its set financial limit.

All in all, an efficient moving budget will make you feel financially comfortable with your relocation and will help ensure a smoother and less stressful moving experience.

How to make a moving budget

Creating a moving budget is quite a straightforward task – all you need to do is make a list of all the relocation-related expenses and make the corresponding calculations against each entry.

You can use the old-school way (with a piece of paper, a pen, and a calculator) or you can take advantage of modern technologies – spreadsheets in Excel or other suitable software programs; moving apps, especially designed to help you throughout all the phases of the complicated relocation process; etc. You can even download a free moving budget template from the Internet to save time.

No matter which method you choose to make your moving budget, though, the important thing is to know what to budget for when moving out and how to estimate the cost of moving.

How to set up a budget for moving

In order to create a realistic and efficient moving budget, you need to figure in all your probable moving-related expenses. Here is a detailed moving budget checklist to help ensure that you don’t overlook anything important when budgeting for your move.

Moving company expenses

If you choose to use professional moving services, the movers’ charges will be your biggest relocation expense:

1. When moving locally, you will be charged by the hour, so your moving costs will depend on the time needed to complete your relocation;
2. When moving long distance, your moving costs will be based on the weight of your shipment and the distance to your new home.

To find out how much your move will cost you, you’re advised to:

• Get free moving quotes to get an idea of your approximate moving costs – and to get in touch with several reputable movers near you;
• Request in-house binding estimates from three or four movers that offer reasonable prices and seem to suit your moving needs;
• Provide the movers with detailed and accurate information (how many and what kinds of items you have for moving, any special packing or handling requirements you may have, any possible obstacles or difficulties, etc.), so they can make accurate estimates of your moving costs;
• Compare the received offers and choose the mover that offers the best service at the best price.

Carefully research the company you consider hiring for your relocation to make sure you’re dealing with licensed, insured, experienced, and trustworthy moving professionals.

See also: How to find good movers; How to avoid moving scams

Once you have chosen a moving company to work with and received a written binding estimate, you will know how much your move will cost you.

Bonus tip: Be sure to ask about extra services and their charges:

• You may want to use some additional moving services – professional packing and unpacking, furniture disassembly and reassembly, storage in transit, etc.;
• The circumstances may require some accessorial services – some of your furniture may not fit through the doors and may need to be hoisted through a window, your property may not be accessible to a large moving truck and shuttle services may be required, etc.;
• There may be unforeseen extra charges – you may have to pay a fee for handling bulky items, a long-carry fee if the movers need to carry your items for more than 75 feet between your home and the moving truck, etc.

Discuss the details of your move with your movers in advance and make sure any desired or necessitated extra services are included in the cost estimate – so there are no financial surprises come moving day.

Must-read: How much does it cost to hire movers?; How to avoid last-minute moving costs

DIY expenses

If you decide to perform a self-move, you’ll need to budget for:

• Truck rental – Remember that in addition to the rental fee, you will also have to pay for fuel, road tolls, and parking fees;
• Moving equipment – You will need to rent some specialized moving equipment (a dolly, moving straps, furniture pads, etc.) in order to make your self-move safer and easier;
• Food and lodging along the way – in case you’re moving long distance and will be on the road for a long time.

Must-read: How much does a self-move cost?

Good to remember: When moving without professional moving help, the risks of damages and injuries increase manifold. Needless to say, any damaged items, property damage, and/or personal injuries will cost you dearly, so you need to be very careful to avoid accidents during your self-move – or your moving budget may go haywire.

See also: Major risks of moving by yourself

Packing expenses

Whether you’re using professional moving services or not, you will still need to pack your belongings for moving – and will, therefore, need packing materials.

Packing supplies are not expensive but you will need a lot of them and the costs will add up.

You may be able to save on packing expenses by getting moving boxes for free or using items you have at home as alternative packing materials, but you will still need to buy some professional packing supplies, so you need to include their costs in your moving budget.

Must-read: How much does it cost to pack a house for moving?

Good to remember: If you hire professional packers to prepare your items for moving, you may not need to buy any packing materials yourself (the pros will bring everything necessary to complete the job in a safe and efficient manner), but you will have to pay for the professional packing services. (See also: How much does it cost to hire packers?)

Additional moving insurance

Moving insurance is one of the most commonly forgotten things to budget for when moving out.

When moving with a moving company, you will get basic liability coverage for free. Since it covers only 60 cents per pound per item, however, you may want to buy additional insurance for your belongings. Therefore, when making your moving budget, you need to provide for insurance costs too.

When performing a DIY move, you will have the option to purchase rental truck insurance – damage waivers, supplemental liability insurance, cargo protection, etc. You can choose not to spend extra money on additional insurance, of course, but remember auto insurance usually doesn’t cover rental moving trucks and homeowner’s insurance may not cover damage that occurs to items while they’re in transit.

Must-read: Should you buy additional moving insurance?

Travel expenses

When moving locally, you won’t need to worry about travel expenses. When moving long-distance, however, you will need to budget for your trip to your new area:

• If you’re driving to your new home, you will have to pay for fuel, road tolls, parking fees, hotel stays, meals, etc.
• If you’re flying to your new city, you will need to buy plane tickets.

Related: Is it better to fly or drive to your new home when moving across the country?

Post-relocation expenses

When wondering what to budget for when moving out, you should not forget the various costs you will incur immediately after your relocation – you will need money for rent and security deposit (or mortgage payments if you have bought the place), fees and deposits for connecting utilities, repairs or renovation projects (as applicable), new furniture and appliances, cleaning supplies, groceries, transportation, and other everyday essentials.

In order to feel financially comfortable with your move, you need to have enough money saved up to cover your living expenses for several months after the relocation.

See also: How to avoid overspending after a move

Unexpected expenses

You never know what might happen, so when planning a moving budget, you’re strongly advised to set up a contingency fund as well – just in case.

Being prepared for possible contingency situations (natural disasters, accidents, medical emergencies, maintenance emergencies, etc.) will allow you to put your mind at ease and will considerably reduce the moving stress associated with the fear of the unknown.

Now that you know how to make a budget for moving out, you will be able to create a good financial plan for your relocation and avoid costly moving mistakes.

Just one final piece of advice – regardless of what the preliminary numbers are telling you, plan for a bigger moving budget to ensure the favorable outcome of your moving adventure, whatever happens.