How Much Should I Save if I Am Planning on Moving?
When planning a move, creating a budget and savings plan will ensure you have everything you need to make a stressful event run as smooth as possible. The budget you prepare for your move should include the cost for your new apartment or home as well as moving costs.
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Downpayments and Rent
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One of the largest items on your moving budget is the cost to move into an apartment or home. Determine the amount of rent or mortgage you can afford by calculating 30 percent of your monthly income. Once you have the amount for your monthly payment, conduct some research in the areas you plan to move. Your research will give you an idea of the size apartment or home you can afford. Plan to save three times the amount you budget for rent or downpayment to move into a new home. Landlords may ask for first and last month's rent as well as one month for a security deposit.
Moving Costs
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Moving companies can provide you with information on the size truck you will need to move your household to the new place. If you are moving into a home for the first time, you may not need a truck. Ask friends with trucks to help to save on moving costs, but plan to have some cash on hand the day of the move to buy food and drinks for your helpers. Purchase boxes from truck rental companies or collect them from local stores while you are saving for your new home. Research the price of packing paper, furniture pads, tape and equipment such as dollies.
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Deposits
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Utility companies can require deposits from new customers when turning the service on for the first time. The utility company can calculate the amount of the deposit on the average monthly charge for service in the home or rental unit. For example, the electric company may require the amount of one month's average utility bill for new customers. Research the deposits you will need by contacting the utility companies. Landlords may require cleaning and pet deposits when moving into the rental unit as well. Research classified listings to get a general cost for deposits in the area you plan to move.
Storage
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You may require storage if you are moving from a larger home into a smaller place. When planning your move, take an inventory of the items you will bring and those you will not have room for in the new place. Plan to save for storage for a couple of months after you move in to the new home. Having a savings for the storage costs will provide you with a little flexibility in your budget after moving into the new place.
Furnishings
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You can set the amount for your furniture budget in advance. Purchasing brand new furniture to outfit your new apartment will cost considerably more than buying secondhand pieces. Determine what you need for the apartment and set a limit on what you will spend for each item. Plan to buy one or two quality pieces for your new home.
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References
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