Moving is expensive. Whether you are renting a truck or hiring a moving company, there are a variety of costs associated with relocation. Apartment hunting, closing on a home or researching moving companies can be time-consuming, stressful and hectic. That's why, when planning a moving budget, many expenses are often forgotten or overlooked -- resulting in inadequate finances and even more stress as moving day draws closer.
If you are planning a move, keep these often overlooked moving expenses in mind when calculating your moving budget.
1. The cost of packing supplies are often underestimated
While packing supplies are an expected part of moving, many people low ball the amount budgeted. Professional, high-quality moving supplies and boxes can rack up hundreds of dollars on your moving bill. Whether you purchase them on your own or not, they are an added expense.
If you are on a tight budget, you can opt to pack your own belongings in free boxes. However, keep in mind that used boxes have compromised integrity and will not be as sturdy or secure as professional moving boxes.
2. The standard insurance does not cover full value
The standard liability insurance provided by moving companies is known as Replacement Value Insurance, and it covers just $.60 cents per pound per article. You will have to purchase a different policy to get further coverage that will actually compensate you for the true value of your goods, should they be broken or misplaced.
Many moving customers are unaware of this. They are shocked when movers break a $1,000 flat screen television and offer $6 compensation. Discuss your insurance options and associated costs with your movers before signing a contract.
You will also have to purchase insurance if you are renting a truck for your move.
3. You may not have enough space to accommodate everything
If you are moving into smaller living quarters, you may not have properly assessed how much of your belongings will fit in your new pad. While you can always downsize before a move with a yard sale or donations, it's not always enough.
The monthly rate for storage to stow excess belongings can come as a surprise after a move. Properly estimate the volume of your goods, what you have space for in your new home and determine if it is worth paying for storage to keep these items.
4. You'll have to tip your moving crew
While it is not necessarily expected, many customers reward their moving crew with cash tips for a job well done. Moving laborers are often given minimal pay, and they are not the ones receiving payment for your moving bill.
Tipping etiquette for movers varies on the amount of time it takes to complete the move, the services provided and the level of professionalism and courtesy shown by the crew. It is often recommended you tip about $20 to $30 per mover for a full day's work. You will need to tip both the moving crew that picks up your goods and the crew that delivers (if you are moving long distance).
Providing cold drinks, snacks and/or lunch as a sign of gratitude is also appreciated.
5. Don't forget about relocating yourself
If you are moving a significant distance, you will have to calculate travel expenses into your moving budget:
- Airline tickets
- Checked baggage
- Hotel stays
- Fuel
- Tolls
- Meals
Planning for these expenses in advance (such as calculating mileage and gas prices, researching cheap hotels and locating affordable eateries along your route) will help you save money and be better prepared financially during your move.
6. You may be charged fees to transfer service on utilities
Companies charge to disconnect and reconnect utilities, and they also charge for transfer of service. This can apply to your phone, electric and cable service. You may also be required to pay a deposit, such as a full month's cost up front.
Discuss the possibility of technician fees, activation fees, deposits and other transfer costs with all of your service companies before your move, so you can plan your moving budget accordingly.
7. You'll need to replace any necessities you lose or throw away
During your move, items may become lost or damaged. If you did not purchase insurance, or you broke or misplaced your items yourself, you will have to buy replacements. Additionally, many people opt to throw away appliances, furniture or other essential items during a move because they are old, malfunctioning or tattered. It seems silly to waste money or space hauling junk to your new home.
However, after moving in, these crucial items will need to be replaced with brand new models -- and that can get costly. If you will be disposing of your sofa, refrigerator or other major item before your move, research prices on replacements in advance and factor these costs into your moving budget.