How Much Does it Cost to Relocate for a New Job? Four Questions to Ask Before Moving.
Editor’s Note: This post was originally published in June 2019.
Are you thinking about moving for a new job offer? Perhaps you’re considering a relocation to a new city or state, or even a different country.
Before you say “yes” to that offer, there are a few numbers you need to look at. To decide if it’s an affordable move, you’ll need to figure out the full cost of relocation, including up-front expenses and the cost of living. Then, you’ll need to compare those expenses to your new income.
For anyone who has to pay out of pocket, there are lots of numbers to calculate to see if the position is worth the move. Here’s what you should consider.
1. Does the employer offer relocation assistance?
Your potential employer might offer a relocation package to help you cover expenses and sweeten the deal. Some employers simply offer a cash reimbursement. However, others provide additional benefits, including:
- Closing costs for a home purchase
- Hotel bills
- A job finder’s fee for your spouse
If a relocation package isn’t offered, you’re not totally out of luck. You can try negotiating for this benefit. Before you ask, just make sure to calculate what your total relocation expenses will be. You can also look for information on how much the company typically pays for relocation. Then, use that information as your bargaining chip.
2. What are the total costs of relocating?
Once you find out how much your employer will cover, you should calculate how much of the moving expenses will come out of your pocket. There are plenty of expenses to consider, including:
- Temporary housing
- Transportation
- Packing materials (boxes, tape, etc.)
- Rental van or movers
- Professional cleaning services
- Shipping fees
With moving, there will also be last-minute expenses and to-dos that pop up. For instance, you might have to buy appliances or clothing because your boxes didn’t arrive on schedule. Be sure to save cash for these unpredictable costs, too.
3. What is the cost of living in your new city?
You don’t just have to pay to get your stuff from point A to point B. You also have to consider the costs involved with living in a new area. Here are some of the numbers to crunch:
- Deposit or down payment on your new property
- Monthly rent or mortgage payments
- Cost of transit (gas, insurance, parking, etc.)
- Property taxes (if applicable)
- Homeowner’s or renter’s insurance
- Cost of living (groceries, utilities, etc.)
This is where having a budget will come in handy. With your budget on hand, you can look at each line-item expense and then do your research to see how those costs might change in your new location.
If you don’t have a budget, or you’re not sure how to create one, you can always reach out to an NFCC-certified credit counselor for help.
4. Does the salary increase justify the move?
Everyone’s reason for relocating is different. Perhaps the new job comes with a better title, or you’ve always wanted to live in the city where the role is located. No matter what your reason, it’s still important to figure out if the move makes financial sense.
With your “why” in mind, look critically at the amount of money you’ll have to spend to make the dream a reality. Does your new salary cover the up-front expenses, plus the long-term change in your cost of living? You’re the only one who can answer that! Fortunately, with some research and critical thinking stoked by these four questions, you’ll be able to make the best choice for you and your family.
