Moving often sounds like an exciting life change. However, a relocation can be a mistake if you are already struggling to get ahead financially .
So before you make such a huge commitment, consider these reasons why moving might not make sense right now.
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1. You can't cover moving costs
It can be expensive to move your stuff. If you have a three-bedroom home, it could cost anywhere between $1,100 to $8,800 to move 1,000 miles, according to research from U.S. News & World Report.
The farther you are headed, the more expensive your move will likely be.
Take some time to run the numbers on how much it will cost to move for your situation. Unfortunately, you might be surprised by the sticker price.
Are you a homeowner? Don't let unexpected home repairs drain your bank account. 2. You don't have enough saved for a down payment
If you want to buy your next residence, you’ll likely need to make a down payment. While you don’t have to put down a full 20% of the purchase price, you will likely need to put down at least 3%.
If you are buying a $300,000 home, 3% translates to a hefty sum of $9,000.
Many would-be homebuyers simply don’t have the thousands in savings on hand to make such a payment.
3. You can't afford insurance, taxes, and maintenance costs
A down payment is just the beginning of homeownership costs. Some of the other costs you will face include insurance, taxes, and maintenance.
Consider what these costs will look like for your area. Depending on where you live, these expenses could take a sizable bite out of your finances.
Get Out of Debt for Good: Try these 6 clever ways to crush your debt 4. You can't take your job with you and don't have a new job lined up
If you aren’t planning to take your job with you, it’s a good idea to have something lined up before taking the plunge and moving to a new place.
Although it might seem easy to find a new job in your new city, that’s not always the case. That is especially true if the economy turns south.
If you won’t have a job when you move to your new location, at least make sure you have enough in emergency savings to give you a buffer.
5. You are drowning in debt
If you are struggling to get out of debt, moving to a new place could easily saddle you with additional unwelcome costs. These new expenses could keep you in debt even longer.
However, moving can still make sense if you are planning to relocate to a cheaper living situation or are taking a new job that comes with a significant pay raise. Run the numbers to determine what makes sense for your situation.
6. You have several months left on a lease and can't afford to buy it out
Most renters have leases that run a year or six months. Breaking such a lease can be expensive.
If you are renting and can’t afford to buy out the rest of the lease, it’s probably a good idea to stay put for a little while longer.
Can you retire early? Take this quiz and find out. 7. You don't have an emergency fund
A robust emergency fund should hold enough money to cover your expenses for between three to six months.
If you don’t have this safety net for your finances, moving might not make sense. Instead, save up a bit more money before making a move.
8. You are in the middle of a divorce or other expensive life change
When you are navigating a stressful and expensive life change such as a divorce, making a move might not be the right decision.
It’s difficult to focus on finding a place that suits your needs and budget when your attention is being consumed by other things. If possible, wait until the storm passes before making any big decisions about moving.
9. You have other pressing financial issues
If you are tight on funds due to other financial goals and obligations, adding a move to the mix could create unnecessary financial pressure.
For example, if your vehicle is on its last legs and you are struggling to save for a replacement, it might not be the best time to make a move.
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10. You want to move to a more expensive city
If you are planning to move to a more expensive area, your cost of living could rise sharply. Before committing to such higher costs, take stock of your income and budget to confirm you have room for the changes.
Depending on your situation, it might make more sense to stay put for a bit and take advantage of cheaper living where you currently reside. If your financial situation improves, perhaps a move to a place with a high cost of living will make more sense.
Bottom line
While it might be tempting to pick up and move, the reality is that this choice has a significant impact on your finances.
So, take stock of your money situation before committing to a move and confirm it won’t overwhelm your finances or derail your wealth-building goals .
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