MSN Money notes that, “According to the American Moving and Storage Association, an interstate move of 1,220 miles costs an average of $5,630. If you’re staying in-state, you’ll pay $1,170 on average.”
Our family has moved plenty of times since we graduated from college over a decade ago. From apartment to apartment, apartment to single-family home, and single-family home to condo, we’ve moved to a variety of living situations in a number of places. And in the process of relocating, we’ve learned a thing or two about how to cut costs. These helpful tidbits have had us recognizing thousands of dollars in savings when it comes to our moving costs over the years.
Not jumping the gun
Just because a location seems good when you visit or vacation there, it doesn’t necessarily mean that it’s the right location in which to settle down. There are all sorts of aspects of a living location that might only be recognized after you’ve been there for several months or even years.
Recognizing this fact, in our last cross-nation move, we didn’t put the cart before the horse, and therefore stored many of our belongings in a rental storage unit. Therefore, rather than accepting the costs of moving our belongings 2,000 miles and back again once we realized the location was not right for us, we incurred $1,000 worth of storage costs, and in turn, saved ourselves thousands of dollars in the process.
Tax deduction for moving
The moving tax deduction could add some savings to the cost of relocating. Meeting the “time and distance” criteria is the first part of utilizing the moving deduction to recoup some money on income taxes. Since in our case, we do much of the moving prep and work ourselves, we don’t always recognize the greatest savings in this area, but something is better than nothing.
Then there are certain qualified expenses that are eligible to take as part of the moving deduction, so it’s pertinent to review these items as part of completing tax form 3903.
Even for lower costs moves, this deduction can still be useful for reducing tax obligations to some extent.
Buying our own supplies and doing much of the work ourselves
There are all kinds of ways that putting a little effort of your own into the moving process can help save money. Packing and readying possessions yourself can help reduce costs as well as ensure belongings are packed safely.
Moving companies can often boost the price of packing material significantly compared to what you might be able to purchase them for yourself. To negate these inflated expenses, consider obtaining boxes from local stores, buying cheaper packing materials from dollar and discount stores, using old blankets you already own or purchasing them from resale shops, etc.
To reduce the amount of things you have to move, it might be worth considering certain resale and consignment options to downsize, thereby not only reducing the amount of stuff you’ll have to pack and move, but also earning some extra cash in the process. A couple garage sales and well-placed resale items online can garner hundreds or even thousands of extra dollars to help pay for moving costs and make the process easier.
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The author is not a licensed financial, tax, or relocation professional. This article is for informational purposes only and does not constitute advice of any kind. Any action taken by the reader due to the information provided in this article is solely at the reader’s discretion.