How Much Does it Cost to Relocate for a New Job? Four Questions to Ask Before Moving. – NFCC
Editor’s note: This post was originally published on June 2019.
Are you thinking of moving for a new job offer? Perhaps you are considering a move to a new city or state, or even another country.
Before you say yes to that offer, there are a few numbers you need to look at. To decide if it’s an affordable move, you’ll need to understand the full cost of moving, including upfront expenses and cost of living. Then, you’ll need to compare those expenses to your new income.
For anyone who has to pay out of pocket, there are a lot of numbers to crunch to see if the position is worth moving. Here’s what you should keep in mind.
1. Does the employer provide relocation assistance?
Your potential employer may offer a relocation package to help cover expenses and sweeten the deal. Some employers simply offer a cash refund. However, others offer additional benefits, including:
- Closing costs for a home purchase
- Hotel bills
- A job finder’s fee for your spouse
If a relocation package isn’t available, you’re not completely out of luck. You can try to negotiate for this benefit. Before you ask, just make sure you calculate what your total moving expenses will be. You can also ask for information on how much the company typically charges for relocation. Then, use that information as your bargaining tool.
2. What are the total relocation costs?
Once you find out how much your employer will cover, you need to calculate how much of your moving expenses will come out of your pocket. There are many costs to consider, including:
- Temporary housing
- Transportation
- Packaging materials (box, tape, etc.)
- Van rental or mover
- Professional cleaning services
- Shipping charges
With the move, there will also be last minute expenses and tasks that pop up. For example, you may need to buy equipment or clothing because your boxes didn’t arrive on schedule. Make sure that save money even for these unpredictable costs.
3. What is the cost of living in your new city?
You don’t just have to pay to get your stuff from point A to point B. You also have to consider the costs associated with living in a new area. Here are some of the numbers to print:
- Deposit or ADVANCES in your new property
- Monthly rent or mortgage payments
- Cost of transit (gas, insurance, parking, etc.)
- Property taxes (if applicable)
- Homeowner’s or renter’s insurance
- Cost of living (groceries, utilities, etc.)
Here is one bUDGET will come in handy. With your budget in hand, you can look at each item expense and then do your research to see how those costs might change in your new location.
If you don’t have a budget, or aren’t sure how to create one, you always can contact an NFCC certified credit counselor for help.
4. Does the salary increase justify the move?
Everyone’s reason for moving is different. Maybe the new job comes with a better title, or you’ve always wanted to live in the city where the role is. No matter what your reason is, it’s still important to understand if the move makes financial sense.
With your “why” in mind, take a critical look at the amount of money you will have to spend to make the dream a reality. Does your new salary cover upfront costs, plus the long-term difference in your cost of living? You are the only one who can answer this! Fortunately, with some research and critical thinking prompted by these four questions, you’ll be able to make the best choice for you and your family.
