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Moving can be a strenuous task, which can dampen the excitement that comes from relocating to a new space. The transportation of heavy possessions and prized valuables can be tricky and may be damaged or lost
When organizing your move, it helps to know how much it’s going to cost you.
The number is determined pretty much by the size of your new home, the moving company you choose, and the distance you’re planning to move. There are some industry benchmarks, but you need to factor in specifics like packing supplies, moving date, and any insurance cover.
Once you know what you need to put aside here are some ideas on how you can squeeze your funds to make it all affordable.
You can make some cash as you build up to the start of the moving process by working out if there is anything you can sell. It’s an ideal time to realize some money on the things you will no longer need.
As you’re sorting get rid of what you no longer need or want. Plus reducing the volume of stuff to be moved is likely to save in moving expenses, too. Here are some of the items to consider for sale first:
Balance transfer cards are great debt management tools by turning unwieldy credit card debts into much more affordable and therefore manageable borrowing.
You can avoid unexpected costs by planning your move carefully. For instance, get the removal firms to survey and give a precise quote. Then you can work out a cash flow forecast to make sure you will be able to move on the date you have in mind. If not, simply delay your move and save up what you now know you need.
If possible, try to arrange your move so it occurs during non-peak periods. Demand tends to spike during the summer, because that is when children are out of school and parents are all scrambling to get into their new homes before the new school year begins.
The first and last days of each month are invariably peak moving periods, too, because leases expire and people who rent swap apartments.
Do it all yourself if you can and if not, instead of going through a business that outsources moving jobs, hire the driver yourself. With less overhead you will have more money to spend and if you’ve done your research, you can choose confidently.
Purge all the stuff that you don’t need and see if you can off-load it for cash. This will also save money on the move because movers charge by weight and distance covered, so it’s pointless packing stuff you won’t need.
Avoid moving any trash. Make sure the garbage bags aren’t lying around to be mistaken for belongings. And don’t bother buying packing supplies. Ask friends and family for any unused boxes tape and instead of bubble wrap use clothing and towels to protect anything valuable like glassware. Make use of as many idle containers like as suitcases, baskets and bins as possible.
Have a Garage Sale to put cash in your pocket and drive your own car – don’t hire anyone else to do it and pack as much in the car as you can.
The average cost of a local move in Canada has been estimated at around $1,250, while long-distance moves can cost as much as an average $4,890.
So, when considering your moving costs, you need to consider how they are going to be paid. Personal loans could be the best choice but what the upsides and downsides?
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To claim any deduction for moving expenses you need to complete Form T1-M, which covers Moving Expenses Deduction and work out the moving expense deduction for which you are eligible on the return’s line 219.
If you receive any reimbursement or allowance from your employer for eligible moving expenses, you will only be able to claim moving expenses if you include any amount you have received in your income or alternatively when you reduce your moving expenses by any amount refunded.
When the net moving expenses paid in the year of the move are more than the eligible net income you earned at the new work location in the same year, you are able to carry forward and deduct the unused part of these expenses from your income earned at the new work location in the future.
If the moving expenses are paid in a year after the year of the move, you can claim them on your return for the year you paid them against any income earned at the new location. This could apply if your old home does not sell until after the year of the move.
This applies if you:
Generally, your move must be within Canada. If you move to work, including running your own business, any summer employment, or you can claim moving expenses.
However, you can only deduct these expenses from the income you earn at the new work location.
If you moved out of Canada to attend a post-secondary institution, you must be a factual or deemed Canadian residents.
When you move it’s always worth looking to trim a little extra off the cost of moving costs. With a little lateral thinking, you are bound to find ways of putting some cash back in your wallet and save yourself from finding the money is tight.
Any extra savings can help significantly, especially if you encounter something unexpected that wasn’t accounted for. Hopefully, some of these money-saving tips will help you cover the cost of your big move.
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