Moving property is something you’ll come to do at least once or twice in your lifetime. Whether that’s going from rental to rental or buying a home outright. There are many reasons why people choose to move, it could be for work purposes or a change in lifestyle. You may have outgrown the home you’re in or want something more from the surrounding area. Whatever the reason may be, you need to have money in order to do it. But how much money really needs saving? Here’s how much money to save before moving out.
Let’s Break It Down
Firstly, you need to consider how much you pay per month currently on general household bills, your mortgage or rental amount, and then anything and everything you spend outside of that. Getting this all down on a spreadsheet will be helpful in understanding just how much you need to be earning per month to accommodate this. The average cost of rent in the US is a $1,025 for a one-bed, and then you need to factor in how much your household utility bills are, and that could range anywhere from a few hundred dollars to thousands depending on your household size and property. Remember to include things like food, transport, and the amount you spend dining out. Any subscriptions, debt payments, and insurance should also be factored into the final total.
The cost of your household per month can end up being pretty expensive, and if you can before moving, it’s worth trying to reduce these costs where possible. You might want to look at your mortgage and see if you can change your mortgage terms to make it cheaper if you’re a homeowner.
The Cost Of Moving Out
The cost of moving will vary depending on whether you’re renting or buying. If you’re renting, then most landlords will expect an initial three month’s rent in advance. That can end up being a few thousand pounds. You then need to consider where you’re moving to and whether the cost of living is more expensive there. For example, city living is a lot pricier than living in rural areas, and that tends to be the same for living costs across the world. That might affect the amount you pay, whether you’re buying a property or renting. For homeowners, you may have a lot of additional costs to cover, especially when it comes to real estate fees that are charged and solicitor fees to process the buying of a house.
For renting, an overall cost to save would be three month’s worth of your current rent, plus a few hundred dollars for a removal company to move any household belongings. It’s also worth saving a little extra for any admin fees that are charged by either landlord or estate agents. When buying a property, you’ll probably need a few thousand dollars to cover legal and admin costs. With buying, you may have more furniture some a few hundred dollars or more might be needed for the removal company. Again, depending on where you move to, you might want to have an emergency fund to cover the initial bump in the price of living, should it be more expensive.
How To Increase Your Income
Increasing your income is worth doing when you’re trying to move, and there are a few options worth considering. If you’re not moving for a while, then the investment is a good way to make some money. There are risks that come with investment, so make sure you know these before spending your money. One of the most popular forms of investment is p2p pending. The p2pempire.com helps users to find which p2p lending websites are the best. Peer to peer lending is where you as an investor to lend money to a borrower, and then you get regular interest on the money you put in.
You could also consider running a side business, whether that be selling products of a certain nature like handmade bath bombs or clothing. You could start a blog or become an influencer. Or you could try and sell your skills online and use your days off or free evenings to provide a service to those that need it. So that could be cleaning, hanging shelves, or putting together furniture. There’s also likely to be a lot of stuff in your home that you could sell. This could be old electronics, clothing or furniture, and if you can sell it online, then it’s worth doing in order to save up some extra cash. Do a declutter of your home and see what you can find lying about.
How To Lower The Cost Of Moving
When trying to lower the cost of moving, it can be done to an extent but takes some work on your part. Try to find locations that are more affordable but are still a place you’d like to live in. Think about going directly through a landlord when renting, rather than through a real estate. That can be a little riskier, but you might then be able to avoid any hefty admin charges. When buying a new property, get your removal company booked in and shop around for the best deals. Try to get certain aspects of the buying process paid for or discounted in some way. If you don’t ask, then you don’t get.
Moving property can be a bit of an exhausting and stressful process, but it’s all worth it in order to better your living environment, whatever the reason. Think carefully before you make the decision to move and ensure you’ve got the funds readily available to move without putting yourself into debt. Figure out if you can help lower the cost in any way, and don’t forget that there’s plenty to do outside of your normal job where you can make money. So save where you can, ask for things that will make the process cheaper, and rally your friends and family to help out when it comes to the move itself.