Summer is a common time for many people to change their situation in life, either by moving across the city or across the country. And whether you’re moving for a new job, a recent graduation, or just a change of scenery, moving to a new city can give you a fresh start financially. Here are some things to keep in mind when planning your move.
Change (decrease) the cost of living
The most important thing to keep in mind when moving to a new city is that your overall cost of living will change. This may be obvious to many people, but goods and services cost different amounts in different parts of the country and the world. From very expensive places like New York and San Francisco to less expensive places like Tulsa or Boise and everywhere in between.
Before moving to a new city, do some research on the difference in the cost of living between your current city and your new one. There are many calculators online that can be used to compare the cost of living between two different cities. Be sure to dig deeper than just the total cost of living. The cost of living makes up many different areas of spending such as housing, food, transportation, and more. Knowing how prices can differ from your usual values can help you plan a budget for your new city.
Hopefully you will move to an area with a lower cost of living. This is a great opportunity to take your extra cash and get started save up or invest. If you are moving to a higher priced area, you can really take the chance Get serious about budgeting.
New friends and family
Your new city also gives you the opportunity to change who you interact with and how much. Maybe you will move closer to your family or have the chance to meet new friends. Changes in the situation of your family or friend can also affect your finances. As you move closer to the extended family, you may have the opportunity to help with childcare and this will save you money.
If you move to a new city where you don’t know anyone, consider how this could affect your budget and social life. Are you going to spend more money in bars, events, and other places meeting new people? Include these expenses in your new budget!
Update your recurring subscriptions
Recurring subscriptions can be an easy way of losing your money if you’re not careful. Without tracking them with a budgeting tool like Mint, it’s easy to pay for monthly subscriptions that you don’t actually use. Moving to a new city can be a great way to update your recurring subscriptions and proactively decide which ones to pay for.
While some monthly subscriptions like Streaming services are easy to take with you when you move, others don’t make that much sense. Keeping paying for your local gym membership while traveling halfway across the country is probably not a good idea. Take the time during your move and take a close look at which monthly payments you are making and which are still adding value.
Budgeting for your move
A budget is one of the most important tools to achieve a positive financial future. Budgeting for your move is important in two ways. We’ve already talked a little about how to adjust your budget to suit your new situation, but creating a budget for the move yourself is also important.
Without a budget, it can be easy to spend a lot more than you planned on your move. Moving is always stressful so before you even know it you will have to spend hundreds or thousands of extra dollars. Make sure you read up on moving options and don’t forget to give yourself some time on budget to take into account any unexpected things that may arise during the move.
The bottom line
Moving to a new city is an exciting time and can be a great opportunity for a fresh start financially. Make sure you compare the cost of living in your new town and how it compares to the prices you are used to. Adjust your budget to your new living situation and don’t forget to budget for the move yourself. A great way to update your budget is to take a look at some of your recurring monthly subscriptions and have an honest conversation with yourself and others in your household about which subscriptions are worthwhile for you. If you follow these tips, you can have a great start in your new town and life.
Dan Miller (68 posts)
Dan Miller is a freelance writer and founder of PointsWithACrew.com, a website that helps families travel for free / cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 children.