With so much to consider while moving, it's easy to lose track of something that underlies all the rest: your finances. Between packing, making arrangements with moving van lines and looking for a house, keeping track of your money can sometimes be the last thing on your mind. Without proper planning, it's easy to make mistakes that could end up complicating your life or even costing you thousands of dollars.
Switching banks and insurance providers are common components of relocating, especially if you're moving out of state. For this reason, keeping in mind a few simple guidelines and tips that can pay dividends when it comes to managing your money as you move.
Open a new account
The earlier you get your money to a suitable location for your new home, the better. Sometimes there is a delay between opening a new account and being able to withdraw from it. If you're worried about transferring all your money before you move, you can leave some in your old account and then shift it completely when you arrive at your destination.
Speak to a tax expert
Because each state has its own tax code and procedures, it is important to get information from a professional about how your move will affect your tax situation. Keeping track of the taxes you paid in one state before you move to a second, will help you when you need to file.
Getting information about the rate of your new home state will also help you budget in advance. Will you be paying more each paycheck? Should you expect more returns? Knowing the answers to these questions before you move can help you start life in your new location on the right foot.
Speak with your previous employer
If you are switching jobs, it is important to learn what happens to your old benefits, which can vary by employer. Cashing out of your old plan, rolling it over to your new job or leaving it as is are some of the most common options, according to Charles Schwab. This decision will have profound effects on your immediate budget and retirement plans, so consider it carefully.
Draft a moving plan
One way a move can affect your finances is if it is filled with unforeseen hiccups. Delays and unexpected costs such as hotel stays can keep you from sticking to your financial plans. To avoid this, consider hiring a household moving company to keep everything as simple as possible.