How To Manage The Financial Side Of Moving
Moving is said to be one of the most stressful times of your life. And if you’ve ever been through a big move, you may know exactly what that feels like. There’s so much to plan and arrange, and it’s very rare that you’ll ever get through it stress-free. However, if you do want to make sure that it’s as manageable as possible, you need to be prepared for it. Besides the actual packing and moving side of things, another thing that can be very stressful for you is the financial side. Because moving sure does cost a lot of money. This is why you’re going to want to try and get yourself organized and together as much as you can before you have to sign on that dotted line. You definitely don’t want to start a new chapter worrying about whether you can afford it!
So, instead, you need to make sure that you can. And being hot and on top of your money is the best way to do it. But when you’re trying to pay your current bills, it can be really tough to work out exactly how you’re going to afford the move. From saving in the first place to paying during the process, and then adjusting to your new bills and financial life, it can be tough. But no matter if you’re moving down the street or moving abroad, there are things you can do to make this process easier. Let’s take a look at what can help.
Get Your Current Situation Together
First of all, you’re going to want to get into the best possible position today. And this is before you even think about buying somewhere new. Because if you’re about to go through this wildly expensive period in your life, isn’t it best to feel comfortable before it begins? Now, you may need to improve your situation, or you might just want to know where you are, so that you can put your savings plans in place. Either way, this is the first step.
Manage Your Bills Better
If you know that you’re currently spending a ton of money on your bills, you’ll want to change that. Because you definitely don’t want to be paying out a ton of money each month and trying to move. If money is tight, then think about how you can save on your monthly expenses. Not only will this give you more peace of mind, but it can also free up some extra money for savings.
Get Out Of Debt
It’s definitely a good idea to get out of debt. The last thing you want to do here is go through the moving process knowing that you owe thousands of pounds already. So, if you know that you have some money on credit, why not save extra hard to pay that off?
Work Out What You Need
When you feel like you have your head around what’s going on with your money, you can then start to think about the mortgage process. Whether this is your first purchase or you already have a mortgage, it’s handy to know what you need. So look at the market. Compare the prices of a new property with an old property, and even the cost of a fixer-upper. Just try to work out how much you think you will need or what you can get for the budget you have in mind.
Create A Savings Plan
Now, it’s time to get saving. Ideally, you should come up with a plan. If you can start putting money away for the mortgage deposit as soon as possible, you’ve got the ball rolling. Even if it takes you years, just having that money saved is often exciting enough.
Speak To A Mortgage Lender
It’s also a great idea to speak to a mortgage provider. If you have no idea what you need to actually get the money, it’s a good idea to have the conversation as early as possible. And this isn’t just about the financials, but also things like the paperwork. Maybe you need references or to get identification documents together? You may even need to work on your credit score, so the earlier you can do that, the better.
Save A Little Extra
Then, if you can, it’s a good idea to save a little more than you need – just as a buffer. Sometimes the fees can shock you. Or you might even want to go for a property that’s a little over budget. So having that extra saved up can be helpful.
Be Sure Before You Buy
And just be sure that you’re getting the right house before you sign on that line! Don’t rush, and don’t pressure yourself. This is a big financial commitment so you want to be sure that it’s right for you. If you have doubts, the right property may be just around the corner, so wait!
Keep Money Aside For Renovations
Now, it’s very unlikely that you’re going to buy a house and move straight into it and be happy. Sure, new homes are usually all done for you – or you even get to pick what goes into it. But, if you’re not buying in that situation, it’s a good idea to know the approximate cost of renovations. That way, you can allocate some money in your budget for painting or changing the kitchen or anything else you might like to do.
Give Yourself A Safety Net
But then also, you may find that it’s really handy to have a bit of a financial safety net in place. When you’ve just spent all of your money on moving, it can be stressful. What if your car breaks or your boiler breaks? Then you definitely need to have a safety net behind you so that you don’t have to worry about money. So if you can, before you even sign to buy the house, make sure that you have this little nest of money tucked safely away somewhere.