Color Me Thrifty - Moving Day

If you're near college aged or have kids / nieces / nephews near college age, moving is a season that comes around about twice a year in the spring and fall. After 4 years of undergrad and a cross-country relocation (and then back) you'll be an expert just like us.

Editor, Erin as she re-located to Santa Cruz, CA in 2008

We're going to do a few posts about moving to answer your questions and share our wealth of knowledge on the subject.

Today's post - money, money, money. More important than location, location, location... we think so.

 How much should you pay for housing on a monthly basis? 

Experts suggest no more than 25% -30% of your take home pay for rent. This doesn't include your utilities (gas, electric, cable, internet, insurance, shoes) which should round out the monthly budget at no more than an additional 10%. But, a simple calculation is only a starting point.

If you've got student loans, a car loan payment, car insurance and credit card payments to make those have to be subtracted before you calculate your monthly budget because they're basically fixed costs. Once these are taken out, the 30% rule might not apply. 

Do I really need renter's insurance?

Yes.

True story - four close friends of CMS editors have had their Chicago apartments struck by lightening, flooded or fire damaged. 

No one had renter's insurance and were all stuck with the costs of replacing everything (clothes, mattress, furniture, electronics) at brand new market prices. Renter's insurance will pay for it... less your deductible (usually $500 or $1,000... pennies compared to the cost of replacing everything).

What does it really cost to move?

You might think that moving is just one day, one new check and a whole lot of boxes but unfortunately it is so much more than that.

Typically first month's rent comes with a full month's security deposit (read: double rent for a month). If you take care of your place you'll get your security deposit returned, but don't count on that cash to pay for your new place's deposit... timing is too tight. 

Hiring movers or renting a truck and paying friends with pizza and booze will be another moving day cost. Add in any packing materials (wrapping paper, popcorn, boxes, tape) before you close the books on moving day.

Experience has shown us that you should be saving up for about 6 weeks in prep for a move. As soon as you have your move-in date and location hire movers... the peace of mind and zero risk of irritating friends make the extra cost worth it. 

Oh, and don't forget to save up for Moving Announcements! We love these from Paper Source. Happy Moving!!