It seems like every financial publication I pick up these days has information about relocating. This is because as school finishes, May and June are the most popular months for families to move. In fact approximately half of all residential moves take place during the summer months. Since I've moved about 10 times in the last 20 years, with 3 moves being across the country with my wife, kids and pets, I feel qualified to share my experiences. In this article, my goal is to help readers ease the potential financial burden of relocating. Whether you're moving across the country or across town (I've done both a few times), a little strategic planning can help ease the transition for you and your family.
Manage your money online
Many banks and credit unions have made it easy to manage their customers' accounts online. These days, anyone who has internet access should strongly consider managing their bank accounts online. Assuming you maintain appropriate security measures with their computer (virus software, anti-spyware, etc), managing bank accounts online is easy, safe and should ensure you don't have surprises (like accidently overdrafting on your account). During a relocation, if you manage your accounts online, you can check account balances, transfer money between your accounts (savings or checking), make loan payments or you can make arrangements to pay bills use web bill pay. You can accomplish these tasks, as well as viewing all of your up-to-date bank statements whenever and wherever you want.
A few years ago, I changed employers and moved my family across the country. At the time, there was no such thing as internet banking. The only way to get an update on my account balances was to go to the bank or phone them. I didn't have time to accomplish either and unfortunately, I bounced a check. I was able to recover by paying a penalty, but it was embarrassing. I was also late on a credit card payment, because the bill didn't arrive in time for me to complete an ontime payment.
A part of online account management is web bill pay. These day's most banks offer free web bill pay to their customers. I strongly urge anyone to take advantage of web bill pay. Web bill pay helps to ensure that your bills will be paid online. This is particularly beneficial because you don't want to rely on your mail catching up to your in your new home.
In order to minimize problems with late, forwarded mail, it's best to complete a US Postal Service Change of Address form at least 3-4 weeks prior to your move and get it to your post office.
Receipts for taxes
If you are relocating for a new job and your employer is not reimbursing or directly paying for your move, there's a good chance you move may be tax-deductible. You need to save all your receipts for the move. Movers, packers, moving supplies, etc. can all be tax deductible. IRS Publication 521 can provide direction for what moving expenses are deductible. Along these lines, it makes sense that the less you have to move the easier your move will be. Reducing the amount of your belongings will not only reduce the costs of your move, but can also provide you tax break. Donate clothes and furniture, as long as they're in decent shape, to the charities of your choice. Don't forget to ask for receipts. You won't be able to claim the deduction if you don't have a receipt.
Be organized & plan ahead
Prior to your move I recommend that you compare prices for all the services involved in your move that you will be paying. Additionally, you should create a checklist for everything you'll need to do. This includes forwarding mail, shutting off utilities, informing insurance companies of your move and ensuring you pick-up all medical records. Contact several professional movers 1 - 2 months prior to your move and determine which company will best satisfy your needs. Lowest price isn't the only consideration with a mover. Reputation of a company is also important. When you schedule your move, consider that weekends are very popular. Also, attempt to get the movers at the beginning of the day. If you're their last stop, they may be late, not to mention tired. Whether or not your packing boxes or not, ensure that everything is clearly labeled and also keep an inventory of everything that is packed. This is especially important for fragile items. There's a chance that if the movers don't replace damaged items, you may be able to take a deduction for their replacement.
There's much involved with a relocation. I can't begin to identify everything involved, but as you can see, if you need to plan ahead and stay organized, in order to reduce the financial stress of the entire process.
Dan Lyne has moved many times and closed on many homes. He's had some very good and some bad relocating experiences. He's writing these articles to share his experiences with his readers in hopes that they will benefit from his knowledge. You can find more information about home mortgages, and debt consolidation, by clicking on the links and checking out the sites he frequently contributes to. |
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