Moving to a new home can be thrilling, but it can also be overwhelming. Without proper planning and budgeting, money can slip through your fingers faster than you think.
So, how much money should you save before moving? From factoring in rental costs to budgeting for emergencies, here’s a helpful breakdown of a suitable amount of money to save before making a big move.
Consider Mortgage or Rental Costs
Whether you decide to rent or purchase property, planning for the associated costs is crucial.
According to Apartment List’s New York City Rent Report for November 2023, the average rent in NYC is $2,092 for a 1-bedroom apartment and $2,209 for a 2-bedroom. Across the country, the typical rental cost is $1,161 for a 1-bedroom and $1,331 for a 2-bedroom.
Ideally, your monthly rent or mortgage shouldn’t surpass 25%-30% of your disposable income to avoid financial challenges.
You’ll also have to budget for:
- The First Month’s Rent or Mortgage: We suggest saving enough money for at least three months’ worth of rent or mortgage before moving out.
- A Security Deposit: This usually costs the same as your monthly rent. You should be able to get your money back when you move out.
- Management Fees: You’ll have to pay for a background and credit check, typically around $50, and additional fees if you seek assistance from a broker.
- Travel Costs: Remember to include expenses for plane tickets or gas in your budget when moving long-distance.
Calculate Monthly Utility Bills
How much should I save before moving also depends on utility costs, which vary based on location and property size. As a general estimate, plan on budgeting around $200 per month to cover expenses such as gas, water, electricity, cable, internet and waste collection.
Reach out to service providers in your new area and ask for an estimate of your potential monthly bills. This will help prevent surprises and determine how much money should you save before moving.
Secure Renters or Homeowners Insurance
Securing renter’s or homeowner’s insurance when transitioning to a new place is advisable. The average cost of renters insurance in New York is $170 annually.
Insurance safeguards your belongings and property from theft, fire or natural disasters. In many cases, landlords or mortgage lenders may require you to have insurance.
Factor In Moving Costs
About eight to twelve weeks before your move, it’s best to start looking for moving companies and requesting quotes. Moving companies often charge based on distance and the volume or weight of your items.
Finalize your chosen moving company and confirm dates at least a month before your move-in date. Discuss any specialized requests, especially if you have delicate items such as antique furniture or pianos. Some companies may charge extra for handling fragile or bulky items, so it’s best to inquire about additional costs beforehand.
Set Aside Emergency Funds
Moving comes with its share of surprises, such as home repairs, cleaning costs or utility deposits. An emergency fund acts as a safety net, allowing you to address these unexpected costs without derailing your entire budget.
Ideally, aim to have at least $1,000 saved in an emergency fund. Keep adding to this fund until it’s enough to cover two to three months of living expenses.
Select the Furnishings You’ll Need
Decide what you want to bring from your old place and list the things you’ll need to buy. This way, you can budget accordingly and ensure a more organized move.
You’ll need essential furniture like a bed, wardrobe, rugs, curtains, tables, chairs, couches and lamps. Investing in quality appliances such as a fridge, kitchen stove, washing machine, microwave and coffee maker can help you save more in the long run.
Ensure a Stress-Free Move With Liberty Moving & Storage
The question, “How much money should you save before moving?” largely depends on your unique circumstances. Factors such as property size and type, location and whether you’re renting or purchasing can influence your savings goal.
For professional moving services in the NYC area, reach out to Liberty Moving & Storage. With 84 years of experience and a network of 8,000 moving trucks, trust that you’re in good hands.
Call us now at 1-800-640-4487 to request a quote for residential or commercial service.