Saturday, July 30, 2011

How to Save Money: Move

One of the most powerful money-saving decisions we made was one of the most difficult. We decided to move. While we had motivations that weren't exclusively financial, doing some math really helped in our decision.

If you are planning a move soon, consider financial costs and savings as a big factor in your decision. Here are some things to consider.

1. Location compared to work, church, and other regular destinations. How many times do you drive there on average a month? Put these distances into a spreadsheet and calculate your savings. Look at the federal mileage reimbursement rate to help calculate how much you are saving by moving closer.

2. Monthly costs at your current location vs monthly costs at the new location. Consider rent/mortgage, utilities, property taxes, insurance, and available appliances (e.g. laundry hookups vs laundromat.

3. The costs of moving: rental truck or movers, deposit at new location, closing costs/selling costs, down payments, cleaning, application fees, installation services, and new furnishings and appliances.

In the quest to save money, consider that housing is probably your primary expense. Are you willing to make big decisions to help your financial situation?

Personally, when we moved we gave up 250 square feet. However, we are 12 miles closer to my job, and 12 miles closer to our church. By calculating the average number of round-trips we make to each destination monthly, that is a savings of $250 a month in transportation costs alone! That's $3000 a year. In addition by going with a smaller place, we saved $70 a month. That's $840 a year.

If I told you it was possible to save $3800 a year and spend more time with your family and less in the car, would you consider it?

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