Make a Plan to Move to Another State
According to a recent Gallup poll, 33 percent of Americans wish they could move out of state. Whether you are a recent college grad or a midcareer professional, pulling up roots and moving to a new state comes with its share of headaches. Is it better to hire a mover or rent a truck? How will you insure your belongings during transit? What expenses will your new employer cover? Before you break out the boxes and shipping tape, consider these 10 ways to simplify the moving process.
Make a Budget and Start Saving
Shipping, gas, hotel and insurance costs pile up quickly. Add security deposits for renting and starting utilities in your new home, and it becomes clear that moving requires quite a few upfront expenses that can drain your bank account. Making a budget and a savings plan to cover the costs will help smooth the transition, but don’t rely on the security deposit from your old place to cover those costs. It often takes weeks and sometimes longer for a landlord to refund your security deposit (check your lease to be sure).
Your budget planning shouldn’t stop when you get to your destination. Cost of living varies from region to region, and your current salary might not afford you the same luxuries after the move. Use a cost of living calculator to determine how far your current salary will take you in specific cities across the country to see if moving out of state is a smart fiscal idea.
Check What Your Employer Will Cover
Some companies cover relocation costs, but it is important to know exactly what that entails. Your employer may reimburse items such as shipping services, packing services, transportation and travel expenses associated with searching for your new home — if you are moving specifically for the job. Negotiate during the hiring process and ask whether your employer will cover other costs such as lease cancellation fees, realtor assistance, temporary housing and storage.
Decide What You’re Moving
Is it really cost-effective to move a decade-old, 100-pound couch and an outdated TV? Take stock of everything you own — especially bulky furniture and electronics — and calculate if it would make more sense to sell the items before you move and reinvest your earnings in replacements once you get to your destination. Don’t forget to factor in what you might save in time, money and energy by not hauling these heavy items. If you can’t afford brand new furniture, consider hunting down preowned items on free online message boards. Use your moving truck to transport your new finds.
Plan for Partial-Year State Taxes
While you are deducting expenses on your federal tax return at tax time, keep in mind that you may have to file two separate state tax returns when you move out of state. If you earned income in two different states during the fiscal year — unless you are moving to or from a state that does not collect individual income taxes, such as Texas, Nevada or Washington — you will need to file a return in each state to cover the time you lived there.
Research Movers, Truck Rentals and Shipping Companies
The three most popular ways to transport belongings across state lines are professional movers, truck rental companies and container services that provide and transport self-storage containers that you fill yourself. Although each service has its own perks, prices can vary drastically:
If you opt for full service, the movers will pack, load, ship and unpack all of your belongings, so the only thing left for you to do is to tell them where to park the couch. Many people choose to do the packing themselves to save money and ensure proper handling.
Estimating the costs of professional moving services isn’t as easy as jumping online. Some moving companies send an expert to your home to evaluate your items and provide a quote. Unlike moving trucks and shipping services, movers often do not factor in mileage as much as weight of cargo. Professional movers can get pricey, but their services will allow you to focus on other pressing issues surrounding a move.
Truck Rental Companies:
Renting a moving truck is not for everyone. You have to be comfortable driving a large vehicle without a rearview mirror (using side mirrors instead), and you need to be aware of the added length and width of the vehicle when changing lanes and maneuvering through narrow streets. Most truck rental companies do not offer any training on how to drive a large truck, so first-timers may need time to adjust. Typically, the only requirements for renting a moving truck are that the driver be 25 years of age or older and have a valid driver’s license.
Truck rental companies usually base their rates on the size of the truck (measured in length from 10-foot to 26-foot trucks), distance of travel, days of use and insurance. Additional items such as appliance dollies (around $10 for two) and furniture pads (around $10 for a dozen) are optional. Make sure to evaluate the size of your truck against your belongings so you don’t pay for unnecessary space. Many rental trucks are equipped with a towing apparatus so you can hitch your car along for the ride. Don’t forget to factor in fuel costs.
Shipping Container Companies
Shipping services that deliver storage containers to your current home take the hassle out of transporting your items. You specify where you want the company to put the container (e.g., in the driveway or in a designated spot on the street). You pack the container however you like, securing it with your own padlock.
On a designated move date, the company returns to pick up your container and ship it to your destination, where you’ll unpack at your leisure. If you don’t know where you will be living in your new city yet, the shipping company often will hold the container at a storage facility. You can store your items for a monthly rate (similar to self-storage lockers), however you cannot access your belongings while they are in storage.
Prices vary according to the destination and by container size. Containers come in various sizes that usually accommodate between one to three rooms’ worth of stuff — if you need more, you have to rent multiple containers. Keep in mind that these containers take up space and you are not able to move them on your own. Ideally you should have a driveway or private parking space (both in your departure city and your destination) to accommodate the container for at least a couple days while you load and unload.
Do your due diligence before signing a contract with a moving, truck rental or shipping company. Obtain at least three shipping cost estimates from different companies in order to ensure the best deal. User-review sites can help you find the most reliable companies. You might also ask friends and family on social media for recommendations.
Anything can happen when all of your worldly possessions are packed into one space, speeding down the highway. Although moving companies provide insurance options to protect your belongings, it is important to understand the nuances of each package. The U.S. Department of Transportation outlines typical moving insurance options on its website.
Keep Your Valuables Close
That heirloom Rolex, your grandmother’s pearls and that 1952 Mickey Mantle rookie baseball card are the types of items you should not send packing with the replaceable dishware. Keep irreplaceable items with you at all times, whether you are driving or flying.
Update Your Information
Moving out of state can be overwhelming, but it is important that you update your information in your new location as soon as possible. You can update recurring bills, such as car and student loans, as well as credit card and bank accounts online or by phone once you secure a new address. As for regular day-to-day mail, this online form alerts the U.S. Postal Service of your address change and will forward your mail for up to a year.
You also will need to obtain a new driver’s license and vehicle registration. Each state sets different timelines.
Visit your local DMV to check that off your to-do list. While you’re there, ask for a pamphlet on state driving laws. For example, you might be surprised to find that it is illegal to drive while operating a cellphone in your new state. Do your research and know the laws before you get dinged with a ticket. After you’ve registered, don’t forget to update your car insurance policy.
[Any reference to a specific company, commercial product, process or service does not constitute or imply an endorsement or recommendation by the National Endowment for Financial Education.]