How to plan a moving budget: Essential tips for saving money
We break down the most common moving expenses to budget for so you can avoid last-minute surprises and be ready for whatever comes your way.
The moving process is complex and involves many different parts. From prepping a house for sale to finding (and closing on) a new home to packing and hiring a moving company, you have many expenses to consider. While creating a moving budget isn’t exactly exciting, it’s critical.
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A moving budget is a roadmap to staying on track, finding ways to cut costs, and creating a cushion for unexpected (and sometimes expensive) surprises. Here are the most common moving expenses, along with tips for planning a realistic moving budget that works for you.
Typical moving expenses to budget for
This list isn’t a one-size-fits-all budgeting template but is a comprehensive list of common costs your moving budget could include. Tweak it to fit your specific needs.
A moving company
“It’s expensive to move, and you want to save money, but sometimes cutting corners doesn’t pay in the end,” according to Rebecca La Pira, broker-owner at Re/Max Signature Homes in Closter, N.J..
Your costs can vary widely based on location and the size of your home, but you can expect to pay an average of $2,200 for a local move and $4,400 for a long-distance move for a three-bedroom home, according to a recent Forbes article. It’s a good idea to call a few local moving companies to price quotes.
La Pira and Cindy Myer, president at Ridgewood Moving Services, a full relocation service in Mahwah, N.J., say getting multiple estimates from movers is essential, as are in-person estimates. La Pira recommends avoiding moving companies that only want to give an estimate over the phone.
“Two three-bedroom, two-bathroom houses can look completely different,” she said. “It's common for moving companies to show up and say you have more stuff than they thought, then hit you with a higher bill.”
Due diligence is key to avoiding moving company scams and losing money. Ask about hidden costs or additional charges like fees for elevators, longer carries, stairs or heavy or extra-large items.
Consider professional packers
Scheduling when to pack presents another challenge. Between balancing jobs, cleaning out the old house, deciding what to downsize and more, hiring movers to help pack can take some of the pressure off — at a cost. And that cost can sometimes double the price of simply moving your stuff, La Pira said. According to Home Advisor, packing services average about $1,000 but can cost $2,220 or more.
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“Packing is one of the leading moving expenses,” said Myer. “Movers charge by the actual box packed using a materials-plus-labor formula to calculate the cost. Third-party services can include crating, uncrating, disassembling, and reassembling complicated furniture, gym equipment and more.”
The other benefit of hiring packers, according to Myer, is more protection if something breaks during the move. “Moving companies aren’t responsible for [the] inside contents of boxes packed by owners unless there’s visible damage to the outside.”
Some people do the bulk of packing themselves but hire experts to handle items like chandeliers, expensive ornate artwork, statues, and other valuables requiring extra care during transport.
Packing supplies add up, too, but you can save money during your move by using what you already have on hand, like towels, old newspapers and blankets. You can also find free moving boxes fairly easily. Otherwise, expect to pay between $150 for a one-bedroom and $300 for a three-bedroom house for supplies, according to UniMovers.
Moving trucks, pods or shipping containers
Planning to move yourself? A moving truck or container costs less than hiring a company. CNET did the math and found the average cost to rent a truck for a short move (10 miles) is $48. A long-distance move (1,000 miles) costs about $1,400, CNET found.
It costs roughly $1,000 to $7,000 to rent portable moving containers and have them shipped to your new locale. Check out our guide to moving pod and shipping container prices to learn more.
Dumpster rentals or junk removal
If you purge a ton of stuff or hold a moving sale and still have leftovers destined for the trash or junkyard, getting rid of it all costs money. Some towns limit how much trash they’ll take, said La Pira. “My town limits bulk items like furniture or things that won’t fit in a garbage can to five per week,” she said.
Unless you plan far ahead, you need a quick solution. You can expect to pay between $294 and $479 to rent a dumpster, depending on the size and length of the rental, according to home service site Angi, which calculated an average cost of $242 for junk removal services.
Storage fees
If you’re renovating your new home and need a temporary place to store your stuff, you may need a short- or long-term storage unit. Depending on the size and length of rental, Forbes Home cites average prices ranging between $75 and $185 per month.
Insurance
Whether you hire movers or DIY, you can get insurance to protect your stuff during your move. Moving companies are required by law to provide some insurance; however, the released-value protection (RVP) offers minimal protection and won’t reimburse nearly the full value of your belongings if something happens. Prioritize researching your options for moving insurance, since the value of your belongings and your chosen policy will determine how much to budget for this expense.
“In New Jersey, DCA [Department of Community Affairs] dictates that movers must provide $1 per article, per pound for anything damaged in a move,” said Myer. “We also recommend added Valuation for full item replacement if needed, and we tell our clients to contact their homeowner insurance provider to see if they have coverage for moves or storage.”
Travel expenses
If you're moving a significant distance, calculate or estimate your travel expenses for gas, hotels, food or airfare. The costs will vary based on your specific situation, but it shouldn’t be too hard to come up with a number you can use to budget accordingly.
Security deposit
Moving to a new rental home or apartment that requires a security deposit? You’ll likely have to pay for any such deposits well in advance, but it’s wise to factor that cost into your budget as well. Most security deposits equal one month’s rent.
Utility or connection fees
Some utility providers (gas, water, electric, sewer and internet, for example) will charge transfer or connection fees. Those fees depend on the specific provider, but laws and rules vary by state. Check your state’s Public Utility Commission (PUC) website for details, and read our guide to setting up utilities before you move for more details.
Cleaning fees
If you plan to professionally clean your old or new home before or after moving, include the cost in your budget. Typical deep cleaning costs range from $200 to $400 ($0.20 to $0.45 per square foot), according to This Old House.
Childcare or petsitting
Don’t forget about your little ones and furry friends when you move. If you need to hire a babysitter to watch the kids while you pack or unpack during a move — or board your pets at a kennel for a few days before (and during) the move — factor those costs into your budget. Expect to pay between $25 to $55 a day if you board a pet at a kennel, according Rover.com, an online platform that connects pet owners and sitters. UrbanSitter.com, a San Francisco-based website for parents to find childcare, says the average hourly rate for a sitter is $25 in the U.S.
You may also want to read up on our tips and tricks for moving with kids and advice for moving with pets.
Emergency fund
Even with meticulous planning, unexpected costs can pop up during a move. To avoid financial surprises, create a buffer fund to cover additional expenses. This fund might include costs like last-minute packing supplies, unexpected repairs or a higher-than-estimated moving cost.
Recent Forbes Home data showed unexpected moving expenses averaged just over $700, stemming from time off from work (20%), cost of packing materials (22%) and utility service fees (18%). If you can, start squirreling away an extra $100 per month (or more) six months before your move for those “just in case” scenarios.
Create your moving budget
Once you have a list of expenses, follow these steps:
1) Assess your finances
Review your income, savings and other financial commitments to calculate your moving budget.
2) Confirm your wants vs. needs
Verify the specific services you need (as opposed to nice-to-haves) and prioritize them accordingly.
3) List potential expenses
Use the information above to start your comprehensive list. You can download a sample budget template from Someka.
4) Get quotes
Give yourself ample time to get quotes for required services, from moving companies or truck rental businesses to deep cleaning services and dumpster rentals.
5) Build a cash buffer
Earmark extra funds for emergencies, hidden costs, price changes, and unforeseen expenses.
6) Monitor and adjust
Track actual expenses as you go, adjusting your budget as needed. If one category tips over budget, find places to trim in other areas.
Budget for your move early, and budget wisely
Creating a moving budget takes time and effort, but it’s worth it. A detailed budget helps you make informed decisions and avoid surprises. Plan ahead and save by creating your budget and allocating savings four to six months before your move to help ease the financial strain. A solid plan that empowers you to track your expenses and adjust as you go will prepare you for your move.
