February 6, 2020

Money Well Spent: How to Finance a Move

finance a move

As one of life’s least pleasant events, moving is such a downer that there are “Moving Crisis” hotlines set up to alleviate the stress and anxiety triggered by relocations.

Well, maybe not hotlines, but you get what we’re saying.

To make matters worse, you have to finance one of the biggest downers of our lives. In essence, you pay for the pain caused by packing up your stuff and leaving town.

You can take out a loan, dip into your IRA, or spend the cash you have set aside for your kid’s college education. However, there are several tips for financing a move that does not require you to spend any of your hard earned cash.

Get Your Employer Involved with Your Moving Misery

One of the most frequently cited reasons for relocating to another city involves making a career change or moving because your company wants you to work at another location. Regardless of the reason for a job-related move, your current company or the company that has hired you should foot the bill for relocation. Many companies provide financial support for relocations, but the question is does the support cover everything you need covered.

Before you break out a credit card, ask your employer to foot the bill for all moving expenses.

Hold a Sale

Unless you plan to be featured on the next Hoarders episode, you should consider unloading some of your stuff before you pack up the truck and head towards your new destination. Holding a yard or a garage sale will generate at least some of the cash needed to defray the cost of relocation. A well-organized sale that you promote long in advance of selling day can provide you with enough financial resources to cover the cost an entire move. In addition to generating cash, a yard or a garage sale will reduce the weight of the cargo you need a moving company to haul. Cargo weight is the most significant cost of moving.

Get Cash for Financial Assets

If you have one or more interest bearing Certificate of Deposits (CDs) idly sitting in a bank, liquidating the CDs is an excellent way to finance a move. After all, CDs typically are used to stow away a little cash for use down the road. You can also liquidate other types of financial assets, such as stocks and bonds.

With the average cost of a move within the same state running around $23,000 and an out of state move costing nearly $4,600, it is a good idea to come up with creative ways to finance a move. The best part is you do not have to chip away at your kid’s college fund.