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Loans for Major Expenses

Moving Expenses: How to Budget and How a Personal Loan Could Help

using a loan for moving expenses

Moving homes is a pretty big deal. There’s the excitement of a fresh start. There’s the logistics of living in a new place. It can seem like your whole world is changing. It can be easy to lose track of things in all the excitement, like paying for the actual move itself!

If you don’t plan ahead, those moving expenses can add up quickly.

The first part of planning should be knowing your budget well ahead of the move. From there, explore ways to save by minimizing the cost of the big move as much as possible.

Once you figure out how much you need to set aside for the move, you will get a clearer idea of whether or not a personal loan for moving is right for you. So where do you start?

Moving Budget

Everyone’s moving experience is unique. However, there are some commonalities that you should keep in mind as you put your budget together. Here are some of the usual line items to keep in mind.

  • Moving service fees
  • Moving insurance
  • Truck rental fees
  • Shipping fees
  • Gasoline
  • Lodging
  • Storage
  • Utility set-up fees
  • Cleaning supplies
  • Air fare
  • Taxi fare
  • Packing Supplies
  • Perishable Items
  • Security Deposits

Once you build out a budget, you will have a clearer idea of what costs you are likely to incur and you can start finding places to save.

Save on Moving Services

There are a number of ways to cut down on expenses associated with moving services.

The most obvious of which is to not use a professional moving service at all. However, you should be aware that this may add time and stress to your move. You could save money, however, if you decide to go with a moving container service.

Whichever route you decide is best for you and your family, be sure to get written estimates from at least three different service providers. Also, consider moving at off-peak times to take advantage of lower rates.

If you can move in the middle of the month, on a weekday, or during the fall or winter, you may be eligible for a reduced rate.

Slim Down on Your Belongings

The less items there are to transport between one home and the next, the better.

Just about all of us could stand to go through our wardrobe and dresser drawers to figure out what we could live without. Go room by room to determine what needs (i.e. is essential) to come with you and what you don’t really need or use. Consider having a yard sale or posting online classifieds to divest yourself of your surplus items.

You can put the money aside to help pay for your moving expenses. You can also donate your goods.

Streamline the Move

Professional movers usually charge by the hour. Save time and money by packing as many small items as you can before your moving day. Pack plates and flatware, clothing and linens in the weeks leading up to a move, for example. Ensure you have a nice stack of boxes ready to be carried out the door quickly.

Have an extensive home library of books, movies or music? Consider using Media Mail services from the United States Postal Service as a cost-effective way to ship your collection independently. You could also put those old CDs, DVDs and other outdated media in the yard sale and use the funds to go digital with your favorite books, movies and music.

Don’t forget to deconstruct any furniture ahead of time, if possible and applicable. Also, consider donating perishable food items to friends and family. Those items can easily be replaced with one quick run to the supermarket after you settle in to your new home. Just be sure to add that cost into your budget.

Cut Down on Packing Materials

Moving companies will often charge high rates for packing materials, but there are a number of ways to cut down on this moving expense. Reuse empty boxes from your workplace that otherwise would end up in the recycling bin. You can also check with friends and neighbors for old boxes at their jobs.

The dining and retail industries in particular tend to go through a high number of boxes. Your favorite shop or restaurant might have some boxes they’d be happy to give you.

Rather than using bubble wrap to pad delicate items, consider using items from around your home like spare sheets and blankets. Coffee filters work wonders to separate and protect dinnerware.

Take the Deduction

Be sure to record absolutely all of your moving related expenditures. If your change of address is due to work, there is a possibility that you qualify for an IRS tax deduction for moving expenses.

There are firm guidelines in place as to who does and does not qualify for this deduction, so be sure to check the rules listed on the IRS website and seek out the consultation of a professional accountant before making any decisions on the matter.

Hopefully, these tips will help you cut the cost of moving to the minimum.

The Bottom Line

Even then, however, you may need some additional assistance with the cost of moving. It can be a large one, and it lives outside of your month-to-month budget. Plus, unexpected expenses could pop up during the move or even after it’s done. Maybe your new home needs new furnishing sooner than you thought or the average cost of utilities is higher than you expected. Changing homes is a major undertaking. Ensuring there are enough funds for the move itself as well as additional money for the unexpected could help avoid additional stress during this transition. A personal loan might help you do the heavy lifting.

Learn more about Discover Personal Loans and estimate monthly payments using our personal loan calculator.