How to Map Out Your Financial Plan Ahead of a Move

If you are planning to move within the next year, it’s never too early to unpack your financial picture. Whether you are staying in town or moving across the country, costs can add up faster than you might expect. With rising prices on everything from transportation to supplies, having a clear financial strategy is essential for a stress-free transition.

In 2024 alone, nearly 40 million Americans moved, with more than a sixth of those moving across state lines. It’s easy to focus on physical logistics but understanding how to finance your move is just as critical. Begin by listing all anticipated costs, adding a 10-15% buffer for any unexpected expenses, and preventing last-minute stress. Many of these costs fall into five main buckets:

1. Supplies and Services: Packing supplies can add up quickly: boxes, tape, labels, and furniture protection are essential for even the smallest relocation, and the larger the move, the more supplies needed. Cleaning supplies are frequently overlooked expenses that you will likely need as you move out of your old space and into your new one.If you’re short of time or need greater assistance, professional movers and cleaners are an alternative to doing all of the work yourself. With that, comes a greater price tag than a DIY solution.

2. Transportation: Both DIY and professional options come with associated expenses. Renting a moving truck or pod or hiring a moving crew usually requires insurance and cost per mile or day. Also account for fuel, tips, and any tolls roads.
3. Storage: Additional space may be necessary, especially during longer transitions or delayed move-in dates. Whether you need short-term or long-term storage, costs can vary widely depending on unit size, climate control, and location.
4. Housing: If your moving dates don’t line up, you may need to spend a few nights at a hotel or in a rental home.
5. Miscellaneous Extras: Unexpected costs often appear during moving These include gratuities, food, toiletries during the transition period, and insurance to protect valuables during transport. Planning for these “extras” can help prevent stress and overspending.

Financing your move

If your savings alone aren’t enough to cover the cost, there are financing options available, but also consider the payback options and your individual circumstances.

• Home Equity Loan – If you are keeping your home after the move, you can borrow a lump sum against your home’s equity. This is good for large, one-time expenses. This type of loan typically has lower, fixed rates, which means your monthly payment will be predictable. However, you do have to use your home as collateral which heightens risk if you are unable to repay.
• Personal Loan – Similar to a home equity loan, a personal loan offers a lump sum of money with fixed monthly payments. It often has lower interest rates than most credit cards and won’t impact your credit score. With this loan, you need to begin repaying it immediately, whether or not you use all of the money.
• Personal Line of Credit – This is another flexible financing solution that’s helpful for incremental or unexpected costs. You will only pay interest on what you take out, and you don’t need to reapply if you need additional funds. While the ease is greater, the interest rates are often higher than other types of loans. Repayment terms are also shorter, which means you could pay more each month.
• Credit Card – This use-as-you-need-it tool offers flexibility and convenience for small, incremental costs, but as those expenses add up, interest rates come into play. If you are unable to pay off your card by the time the bill comes due, a minor purchase can become a major headache.

Settling into your space

Once the boxes are unpacked, your financial institution can help you seamlessly transition your financial life to your new home. Be sure to:

• Update Your Address: Change your address on all checking, savings, loan, and credit card accounts to ensure you receive important statements and communications. With WSFS, you can do that by using the links under the Customer Service tab in Online Banking, calling 888.973.7226 or visiting a banking office.
• Locate New Branches and ATMs: Familiarize yourself with nearby locations in your new area to avoid unnecessary ATM fees.
• Transfer Automatic Payments: If you’re setting up new utilities like electricity, water, or internet, remember to update your automatic bill pay.
• Review Your Financial Products: A move can sometimes change your financial needs. This is a good opportunity to talk with your banker about your accounts and ensure they still align with your goals.

Moving is a major life event, but with thoughtful financial planning, it doesn’t have to be a major financial burden. By understanding your options and preparing in advance, you can focus on what truly matters: settling into your new space.