How to Budget and Determine Moving Expenses

Moving your household can be an expensive process and often involves a lot of unexpected out-of-pocket expenses. A local move can cost anywhere between $300 and $1,500 on average, depending on the distance and size of your home. Long-distance moves could cost you $5,000 and up, depending on the size and weight of your goods. Despite these estimates, many people grossly underestimate the true expense of relocation. This is due, in large part, to the fact that the financial consequences of moving go beyond the obvious price of hiring professional movers or renting a truck.

Certain expenses are obvious, like paying professional movers, moving supplies, and rental trucks, but it is easy to forget about small costs that can overwhelm your budget. However, if you are not prepared financially, it could cost you even more in the long run. This article aims to provide a comprehensive understanding of all possible moving costs, guiding you through the process of budgeting effectively and efficiently for your move.

What is the Biggest Expense When Moving?

The most expensive part of a move is typically renting a moving truck or paying a professional moving company, and these costs can change based on how far you're moving and how much stuff you need to transport. You may also need to budget for the price of plane tickets or other forms of transportation for you and your family if you are relocating to a new state or country.

Avoid These Costly Moving Mistakes

Many people make financial mistakes that increase moving costs. Avoid these common pitfalls to stay within budget: Not Getting Multiple Quotes – Sticking with the first estimate can lead to overpaying. Always compare at least three quotes from different movers.

• Underestimating Fuel Costs for a DIY Move: Gas prices vary, and long-distance moves can cost more than expected. Use a fuel cost calculator for an accurate estimate.

• Overpaying for Packing Services: Full-service packing is convenient but not always necessary. Packing non-fragile items yourself can save money.

• Forgetting to Declutter: The more you move, the more you pay. Sell, donate, or discard items you no longer need before moving day.

• Skipping Insurance Coverage: Free basic coverage only reimburses $0.60 per pound, which may not be enough for valuable items. Consider full coverage for better protection.

What is The Purpose of a Moving Budget

Moving can be a stressful experience, especially when considering the various moving expenses that come with it. The regular costs associated with moving can rapidly add up, but careful budgeting can help alleviate any financial stress that might otherwise arise.

You might need to reconsider your choices and seek out cost-saving measures if your initial budget puts the move out of your price range. Alternatively, you might find that your finances are more flexible than you imagined and that you can afford to keep some items that you had originally planned to transfer.

A moving budget can also help you determine the most efficient way to promptly get your goods from the old home to your new house. Therefore, it's very important to set up a moving budget for your move so that you can stay on track.

First, you need to decide on how you transport your goods: will you hire a moving company or rent a truck and do it yourself move?

A moving budget is a useful reference for the upcoming relocation. Your next moving budget might be determined by tracking which expenses were more than anticipated and which were lower.

A well-planned budget helps you stay on track financially. Follow these steps:

• List Major Expenses: Include movers, truck rentals, storage, fuel, packing supplies, and insurance.
• Get Multiple Quotes: Check out our website for companies in your area and compare at least three moving companies for estimates and compare services.
• Estimate Additional Costs: Factor in travel expenses (hotels, flights, meals) and deposits for utilities or rentals.
• Set Aside a Contingency Fund: Reserve 10-15% of your budget for unexpected costs.
• Track Expenses: Stay organized by using free tools like Google Sheets or our online moving calculators.

Estimating Moving Costs

Estimating the costs of relocation is necessary when creating a moving budget. A budget template can help you plan and track your expenses, ensuring that you stay within your financial means during the moving process. There are several factors to consider when estimating the moving costs. The main distinction will depend on whether the move is local or long-distance. The further you have to relocate, the higher your moving costs will be. The amount of cargo you transport is a crucial additional component. Moving a big load will probably be more expensive than moving a small load.

Professional Moving Charges

Local Move

If you are hiring a moving company, get moving quotes from several moving companies. This will give you a very good understanding of the actual moving costs and let you compare the moving options. Depending on your budget, you may want the movers to pack your household too, which is an optional service. The mover can give you different options: they can provide a full packing service, partial packing, or just packing materials so you pack everything yourself. When getting the moving quote for your move, inquire about all the options with the mover.

The moving estimate often includes fuel surcharges and labor. If these services apply, ask the movers if there are extra charges for large and awkward items, such as pianos, gun safes, pool tables, appliances, etc. Moving companies will provide liability at no extra charge, but the standard 60 cents per pound per article rate is usually not enough to replace the item, especially if that item is small and valuable. Additional protection coverage could be another cost to include in the moving budget.

1. Moving Company Fees: Charges for a local move usually include labor and fuel. Rates vary by company but generally range from $300 to $1,500.
2. Packing Services: Optional, with prices depending on how much you pack yourself versus hiring movers to pack for you.
3. Insurance: Basic coverage is often included, but full coverage can cost extra.

Long Distance Move

If it's a long-distance move, one of the most important factors to consider when budgeting your move is how much work you are willing to do. For example, if you are willing to pack and load or unload your belongings onto and off the truck, movers will handle the driving and charge you less than full-service moving companies.

1. Base Charges: Long-distance movers typically charge by weight and mileage. Expect to spend $2,000 to $6,000 or more.
2. Packing and Unpacking: Full packing services increase the cost but ensure professional handling of your belongings.
3. Storage: This will add to the total cost if you need to store items mid-move. Prices depend on the duration and size of storage.
4. Insurance: More comprehensive insurance is recommended for long-distance moves to cover potential damages.

Moving on a Budget with Movers

Many movers provide a range of services, from loading and packing to transporting and unloading, so you can pick the services that best suit your needs and budget. Ask about any savings or special offers that may be available since some businesses also provide discounts during particular seasons or for particular moving services.

Packing your things rather than hiring a moving company to do it for you, this is another way to cut additional costs. Although it may require some time and work, this approach of preparing can save you money. Finally, to avoid any unforeseen fees or surcharges, make sure to reserve your moving services as early as possible.

DIY Move

If you're moving yourself, compare quotes from different truck rental agencies, and don't forget to calculate the overall mileage and gas needed for your move. You may need to rent extra moving equipment, such as dollies, moving pads, ropes, etc. Before you purchase insurance, contact your homeowner's insurance company to find out if you are covered under their policy. You may still require additional insurance. It's important to stick to your budget on a moving day and avoid any last-minute expenses that can add unnecessary stress to an already hectic day.

Renting a truck for a DIY move could cost between $50 to $200 per day, depending on truck size.

Moving Insurance

Moving insurance can help secure your possessions during a move, but it can also raise the cost of your move. You can pack your belongings carefully to minimize the risk of damage during transport. Relying on alternative options rather than traditional moving insurance is one method to reduce your moving expenses. For instance, you might be able to get insurance for your possessions during a move through your homeowner's or renter's insurance coverage. As an alternative, some movers might include restricted liability insurance in the scope of their regular moving services.

Here’s a breakdown of common moving insurance options:
• Released Value Protection: Free coverage from moving companies, but it only reimburses $0.60 per pound per item. Not ideal for valuable belongings.
• Full Value Protection: Covers the actual replacement cost of lost or damaged items but adds 1-5% to the total moving cost.
• Third-Party Insurance: If you're moving valuable items like art, antiques, or electronics, consider specialized coverage from third-party providers. Costs depend on the item’s declared value.

Moving Boxes and Supplies

For packing, you will need moving boxes, bubble wrap, packaging paper, tape, mattress covers, etc. Make sure you add all those expenses to your budget. Finding low-cost or even free moving boxes can considerably lower your overall moving costs. Begin by looking at online marketplaces such as Craigslist, Freecycle, or Facebook Marketplace, where people often give away boxes and pack items after moving. You can also ask recently relocated friends or family members if they have any items they no longer require.

Purchase high-quality packing supplies to ensure a seamless move. During a move, old cardboard boxes may be weak and crumble. Additionally, dishware boxes are a worthwhile investment to safeguard your most delicate objects.

Local businesses are another excellent source of information. Retailers, supermarkets, and restaurants frequently have an oversupply of boxes they want to eliminate. Simply ask the manager if they have any boxes available for you to take. Liquor stores, in particular, provide heavy-duty boxes that are great for packaging books or other heavy objects.

Storage

If you need to keep your goods at a storage facility, get quotes from several storage facilities. If you are using a moving company, they may include the storage cost in your quote.

If you hire professional movers for a cross-country move, you must reach your final destination independently. Transportation will be a very important area of your budget. What is the easiest way for you: a plane or an automobile? If you are driving, in addition to mileage and gas, consider lodging and meals as well. If you're flying, add in taxi and airport fees.

Cleaning Costs

When leaving a rental home, you might have to give the place a complete cleaning to get your security deposit back. This could entail contracting with a skilled cleaning service or getting cleaning equipment and doing the job independently. It is similar to how you would need to ensure your house is spotless and presentable to prospective buyers if you were selling it.

Miscellaneous Expenses

Consider any potential unanticipated expenses. You might pay for meals while traveling, new furniture or other household items for your new residence, or utility deposits. The cost of meals while traveling can increase quickly, particularly if you cover long distances. Planning early and bringing your meals and snacks will help you save money. Aside from that, if you are moving to a new house, you might need to buy new furniture or household items to suit the room or replace broken items during the move. Budgeting for these costs and prioritizing essential purchases will help you stay within your spending limit.

Utility deposits are yet another additional cost to take into account when relocating. Depending on your moving location, you might have to put down money when setting up utilities like energy, water, and gas. You should research these expenses beforehand and account for them in your budget.

Contingency Fund

Unexpected expenses can arise during any move. A contingency fund helps you stay financially prepared for surprises like last-minute truck rentals, extra packing supplies, or emergency lodging.

How Much Should You Save?
• Local Moves: Set aside an extra 10% of your estimated budget.
• Long-Distance Moves: Reserve at least 15-20% for higher fuel, lodging, and storage costs.
• International Moves: Budget 25-30% more to cover customs fees, extended storage, and possible delays.

It's essential to consider your specific situation when deciding how much to set aside for a backup fund. For example, if you're moving long distance, you may need a larger budget for unexpected costs. Similarly, if you are moving with kids or pets, you might want to set aside extra money for unforeseen expenses connected to their needs.

How To Save

Whether you hire movers or rent a truck, dramatically reducing the size and weight of your move can save your moving costs. You can declutter effectively by holding a garage sale, selling, donating, or just throwing away goods you no longer need. Donations may even qualify for tax benefits. Be aware that professional rubbish removal services come at a price if you have a junk removal company remove your old items.

When planning a move, it's important to consider all the additional costs that may arise beyond just the price of hiring movers or packing supplies. One cost that can often be overlooked is car shipping. If you're moving a long distance and don't want to drive your car to your new location, you may need to arrange for it to be shipped. Car shipping can be expensive, especially if you have multiple vehicles or need expedited service, so it's important to budget for this additional cost in advance to avoid surprises later on.

Creative Ways to Save Money on Your Move

Beyond packing yourself and moving during the off-season, try these lesser-known ways to cut costs:

• Use Freight Shipping Services: If you prefer a DIY move but don’t want to rent a truck, freight companies let you rent part of a trailer for less than full-service movers.

• Share a Moving Truck with Backhaul Services: Some movers offer discounts when transporting goods on a return trip (backhaul). This can be a cheaper alternative to a dedicated moving truck.

• Negotiate Discounts: Moving companies often adjust prices based on demand. Ask about seasonal discounts, referral programs, or price matching. Flexible move dates may also lower costs.

• Ship Small Items Separately: For non-urgent items, shipping through UPS, FedEx, or USPS may cost less than adding them to a moving truck, especially for long distances.

Avoid the Peak Months and Weekends

Making reservations in advance can also lower moving costs or, at the very least, help you avoid extra fees for making last-minute reservations. In the off-season between September and May, moving companies offer lower rates. Moving in the middle of the month, or on any other day but the first or last day, could also be less expensive.

Every step of your budget will include miscellaneous costs. Add another 5 percent to the subtotal to get your total moving cost. Now that you've created your budget, you may want to check out ways to save during your move and the real moving costs.

Ensure that you access your unique circumstance and add categories as necessary. The more you can anticipate, the less likely it is that you will be caught off guard by a hidden expense.

Industry Trends Impacting Moving Costs

Several moving industry trends have evolved in recent years that can impact the cost of your move. Improved remote work flexibility, for example, has raised demand for moving services, causing people to move around more frequently. This increased demand frequently leads to higher rates, especially during busy moving seasons.

Many moving companies are introducing green moving operations, such as using environmentally friendly packing materials and fuel-efficient vans. While this is good for the environment, it may raise the cost of moving services. Keep in mind, however, that investing in environmentally friendly activities now may result in long-term cost savings, such as avoiding disposal fees for non-recyclable goods.

• Higher Demand from Remote Work: With more people working remotely, relocation rates have surged, increasing moving costs, especially during peak seasons.
• Eco-Friendly Moving Options: Many companies now offer green alternatives, such as recyclable packing materials and fuel-efficient vehicles. These services may cost more upfront, but they help reduce waste and could save money over time.
• Tech-Driven Moving Services: Apps and online platforms let customers compare quotes instantly, book movers digitally, and track shipments in real time.

Tax Deductions

Moving because of a job change can have substantial financial consequences, one of which is the possible tax deduction of some relocation expenses. The specifics of what can be deducted vary, including household goods, moving and storage, travel and temporary housing costs, and so on. Tax laws, on the other hand, are complicated and can vary from year to year.

Aside from job-related moves, military members are also subject to specific regulations. You may be able to deduct some of your moving expenditures if you are an active member of the armed forces and your move is due to a military order and permanent change of station.

Extra Tips

One of the most effective strategies is to create a moving budget that accounts for all expenses, including renting a storage unit and hiring packing services. If you're looking to save money, consider doing some of the packing yourself or asking friends and family for help.

Another way to manage your moving expenses is to be mindful of how you spend money during the process. Consider using a credit card with cashback rewards or other benefits to help offset some of the costs. Remember, sticking to a budget can help you avoid overspending and keep your finances in order, so take the time to create a realistic budget that works for your unique situation.

Facts and Statistics

According to recent industry reports, the average cost of an intrastate move ranges from $2,500 to $3,000, while an interstate move costs between $4,500 and $6,000. Prices vary based on distance, household size, and services like packing or storage. These figures are based on an average weight of 7,400 pounds.

The moving company or truck rental is frequently the most expensive component of moving, accounting for 70-80% of overall moving costs.

Unexpected expenses: Many customers underestimate their moving costs by up to 25%, forgetting to account for fees such as packing materials, insurance, and extra services such as furniture disassembly and reassembly.

DIY vs Professional Movers: Moving yourself can save you up to 75% of the expense of hiring professional movers. However, this does not consider the time and effort required, which might be substantial.

Before 2018, certain moving expenses were tax-deductible if they were tied to a job change. However, the Tax Cuts and Jobs Act of 2017 repealed this deduction for most taxpayers, except for active-duty military personnel who relocated due to a military order.

Frequently Asked Questions