Oct 29, 2024
Moving is a big deal. There’s the thrill of a fresh start, planning for your new place, and ensuring your things are packed. With so much going on, it’s easy to lose track of things—like paying for the move itself.
The first part of planning should be setting your budget. From there, look for ways to save by reducing costs as much as possible. Once you have a good idea of how much to set aside for your move, you’ll likely know if you need a loan for moving expenses.
To prepare for your move, there are several questions you might ask yourself, and a few facts to keep in mind.
Moving costs depend on many things and can range from as little as $500 for a small, local move to more than $14,000 for larger homes and longer distances. The price will also depend on how much packing you can do yourself, how many services you require, and the time of year you move.
For a household with 2 or 3 bedrooms and about 7,500 pounds of items, the average cost of a local move is $1,250. For a long distance move, the cost typically averages $4,890.1
A moving loan—sometimes called a relocation loan—is a personal loan that you use for your moving expenses. Paid to you as a lump sum, a personal loan can be used for nearly any purpose. For your move, it can help cover the mover, and also the boxes and tape, any cleaning fees, truck rental (if you do it yourself), and more.
Create your budget for moving expenses by first assessing the costs. Whether you are moving into your first apartment, your dream home, or your retirement residence, you’ll have some of the same basic needs. These might include:
After creating a budget, you should have a better idea of your potential costs and where you might be able to save.
Yes, you can find ways to cut down on expenses associated with moving services.
The most obvious is to not use professional movers, or minimize their services. Evaluate your situation and decide if skipping movers will add too much time or stress to your move. If not, you might consider packing and relocating on your own.
If you are moving a long distance, it is a good idea to decide whether a moving container service or shared truck will save you money. If you are moving locally, it may make sense to use an app that connects you to people with a truck and moving experience. Or you might move smaller things yourself and use a mover for bigger items.
Also, consider moving during off-peak times to find lower mover costs. Moving at the start of the month, in the middle of the week, or during late fall or winter may help you save.
Whichever option you choose, remember to get written estimates and references from at least three different service providers before making a decision.
The fewer items you move, the more money you might save.
Go through your closets and dressers to decide what you can live without. Go room by room to determine what’s essential and what can be donated, recycled, or sold.
Consider having a yard sale, posting online classifieds, or donating your extra items to a local charity. The money you earn from selling things might help cover some of your moving costs.
Professional movers generally charge by the hour. You may save time and money by packing smaller items yourself. In the weeks leading up to your move, pack décor, dishes, clothing, and linens. And be sure to label and stack the boxes so movers can carry them out the door quickly.
If you are moving to a new state and have a large number of books or other bulky items, you might consider using Media Mail® services from the United States Postal Service. Compare what the postal service would charge versus a professional mover. Or think about selling those old CDs, DVDs, or outdated media players at a yard sale. You might use the funds to go digital with your favorite entertainment.
If possible, take apart furniture ahead of time. Putting the smaller parts of bookshelves, bed frames, or dining tables in a labeled envelope or box might save the mover time. It may also save you the trouble of replacing any lost small parts later.
Full-service moving companies may provide packing materials, but some movers might charge extra for packing services. If you are looking to lower your costs, you might save on packing materials by reusing boxes from your workplace or grocery store. Then you can get a head start by packing some things on your own.
Check with friends and neighbors for old boxes they might have. Inquire on social media if your contacts have boxes to give away. Your favorite shop or restaurant may also have boxes they do not need.
Buying bubble wrap might also add to your moving expenses. Rather than using bubble wrap to protect your things, use items from around your home like spare sheets and blankets. Coffee filters can work wonders to separate and protect dinnerware.
Be sure to record all your moving-related expenses and donations. If you are changing addresses because of work, you might qualify for an IRS tax deduction for moving expenses. Charitable donations of goods may also be eligible. Consult with a professional accountant or tax preparer to learn more.
With the flexibility to use the funds for almost any purpose, a personal loan may be the right solution for moving expenses.
You might not have planned for every expense in your day-to-day budget. You may not want to pay for your move with your savings or a credit card. And unexpected expenses may pop up during the move or even after. Maybe your new home needs additional furniture, or the utilities cost more than expected.
By ensuring you have enough funds for the move itself—and extra money for the unexpected—you may help reduce your stress during this important transition.
To learn whether a personal loan makes sense for your move, use our personal loan calculator. Enter your desired loan amount, repayment term, and credit score to see if Discover® Personal Loans can help with your moving expenses. With Discover, you can see what your loan rate and set regular payment could be before you apply with no impact to your credit score.*
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The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover Bank or its affiliates.
