There’s no way around it—moving is expensive, especially when you’re moving long distance. Dipping into your savings account or saving enough money to cover your moving costs is often the best way to finance a long distance move, especially if your timeline is flexible and you have time to save. Other times, such as moving for work or relocating to be closer to your family, you will have no choice but to move, whether you have enough saved or not. In these cases, financing your move may be a good choice.
Start with a moving budget
When a move is on the horizon, one of the one of the first things you should do is create a moving budget. Whether you plan to hire movers or rent a truck and move yourself, a moving budget can help you keep costs low, as well as help you plan for how you’ll pay for your relocation.
Your moving budget should account for all possible expenses, including:
|Hiring movers||Renting a truck||Other expenses|
4 times moving loans make sense
Now that you have an idea of how much your move will cost, you can determine the best way to pay for it. Here are 4 are times when financing your move may be the smartest choice:
If you’re moving for a job with a higher salary. In this case, taking out a loan to finance your move is an investment in your career and your long term earning potential. Plus, a higher salary will make it easier to pay off your new debt quickly.
If you can afford the payments. If you can comfortably fit the monthly payments into your budget while still leaving some wiggle room in case emergencies pop up, a moving loan may make more sense than cleaning out your savings account.
You don’t have much other debt. Keep your debt-to-income ratio in mind—if you have credit card debt, a significant amount student debt, existing loans for your car, or other personal loans, it may be smarter to avoid adding more debt to what you’re already paying off.
- If you have to move quickly and don’t have the time to save money to pay for your move up front, such as moving home to take care of an ailing family member.
If you do take out a loan for moving, make sure you have a plan to pay it off, such as cutting your expenses or earning extra money.
Financing your move with TSI and GreenSky
At TSI, we know that long distance moves can be costly. That’s why we’re the first long distance moving and shipping company to offer financing services (subject to credit approval).