Whether you’re moving across the country or down the block, the price of a move can be costly. Once you rent a truck, hire movers, buy boxes and packing materials, and factor in other hidden costs, you might wonder if you can afford it. The good news is there are several ways to cover moving and relocation costs, from employer relocation assistance to personal loans. But before you explore how to cover the cost, you’ll need to estimate the total amount of the move.
Calculate your total moving and relocation costs
To properly calculate the cost of relocating, add up all expenses, including:
- Moving truck rental
- Movers (to load and unload)
- Packing materials
- Fuel costs (for a moving truck and personal vehicles)
- Storage (if needed)
- Cleaning your old place and removing junk left behind
- Expenses at your new place (including security deposit and first month’s rent or mortgage)
Once you have a lump sum amount, look for ways to cut back. Can you ask friends and family to help load at your current location and only pay movers when you arrive at your new home? Can you clean as you pack to eliminate the need to pay a cleaning crew? Any expense you can cut helps keep down the total cost of the move. Once you have a number in mind, you can begin exploring the following five ways to cover the cost.
1. Ask your employer about relocation benefits
If you’re moving for work, ask your employer about relocation packages. The employer may cover some aspects of the move related to your job or offer to foot the bill for the entire relocation. You can determine if your employer is paying the costs upfront or if you’ll be expected to cover the moving expenses and file for reimbursement later.
2. Save up in advance
If you’re still a few months away from your move, you might have time to save money to cover moving expenses. To make saving straightforward, divide the number of months until your move by the expenses you calculated above. For example, if you anticipate your move will cost $3,000 and you’re moving in six months, you can set aside $500 per month and pay cash when the time comes. Even easier, get Set & Save, the savings app that automates your savings to meet your goals in a smart way. It saves different amounts at different times so you don’t even notice it’s happening, the way you might notice $500 moved out of your budget at the beginning of each month.
3. Consider a personal loan
A personal loan is a lump sum loan you can use to pay for moving costs now, and repay the loan over months or years into the future. The interest on a personal loan can be fixed, so you’ll be able to repay what you borrow with predictable installments over time. A personal loan may make sense to cover a move if your credit score qualifies you for a low interest rate and favorable loan terms.
4. Use a credit card
Using a credit card to cover moving expenses can make sense if you know you can pay off the balance within a month or two. However, if you qualify for a 0% introductory APR with a new card, you may be able to pay off the move interest-free by the end of the promotional period, which is typically 12 to 18 months. Before you use a credit card, be sure you have a plan to repay what you owe and understand the potential interest payments you could face if you can’t repay it as quickly as you thought.
5. Check out local government programs
Some areas, especially those trying to increase their population, might offer moving incentives to help offset some of the costs of relocating. Look into programs in the town you’re moving into, and be sure to check the city, county, and state levels for moving assistance.
The bottom line
Moving can be expensive, but there are ways to cover the cost of getting your things carefully settled in your new home. If your employer offers relocation assistance, be sure to apply for the benefit. You may also want to explore government programs in your area. Otherwise, consider saving up before a big move or using a short-term loan like a credit card or personal loan to pay for relocating to your new home.
