Guide to Saving Money on Your Move

Many of us find ourselves needing to move lately. Sadly, many are moving out of necessity rather than choice. When times are tough, it’s more important than ever to find ways to cut expenses and moving is one of the most expensive things you can do. Here’s a handy guide to make your move more affordable. 

Before the Move: Minimize the Load 

Every pound you take with you costs you more, so you should get rid of anything you can live without. Weigh the value of each item before you pack it. For every item you own, you have three choices. You can keep it and pay about 60 cents per pound to move it, get rid of it and buy a new one when you arrive at your new location, or get rid of it and just live without it. Of these three choices, living without is the most economical, followed by paying to move it. The most expensive option is to get rid of something you will need again when you arrive at your new location. The most common mistake people make during a move is to throw away their spices, goods that are expensive to replace. 

Getting Rid of It 

Getting rid of things you can live without does not necessarily mean throwing them away. Anything that can be sold on sites like Amazon, such as books, DVDs and any item for which you have a UPC code, are best sold there. The shipping credit for books, DVDs, CDs and tapes can earn you an extra dollar or so if you send USPS media mail. Remember this when pricing and try to post the lowest price on the market to encourage a quick sale.  

Items that cannot be sold on sites like Amazon can be posted on auction sites like eBay. You can save money on your posting if you pay just for one listing picture and then use flickr to host the other images in the product description area. You will need to know a little html code to do this, but it is easy to learn and will save you 15 cents per photo for the listing. Keep a short auction period to get rid of items quickly. 

Everything else should go by way of a yard sale about one week before you move. Whatever is left over can go to the Salvation Army or other charity. Get a receipt and you can use the donation as a tax deduction. 

Track Your Expenses 

It’s important to record all of your moving expenses because some of them can be deducted on your tax return. See Publication 521 from the IRS to understand the three tests you must pass to deduct your moving expenses. Essentially, you must be moving near your new job and at a time that is near when you are beginning the new job. In addition, the new job must be at least fifty miles farther away from your current home than the old job was. Finally, there is a time test that requires you work 39 weeks at your new jobs within the first 12 months of your arrival. For this reason, many people must wait until the following tax year to qualify for the moving deduction. In these cases, taxpayers must file an amended return for the previous year in order to gain the tax advantage. 

Keep a sturdy file in a place where it will be easy to find next year. Mark the date when you will meet the time test on your calendar or set up an email reminder that tells you when you qualify and where you put the receipts. Most people will have lost these documents by the time they are ready to claim them, so be smart, hold on to them and make them easy to find when you need them! 

The following list of expenses may be deductible on your taxes. Be sure to consult your tax preparer or the IRS website for full details on what you can and cannot deduct. 

• Gas and oil for your car, or the standard mileage rate 
• Parking fees and tolls 
• Moving expenses you pay for yourself and members of your household 
• Cost of transportation and lodging for yourself and members of your household for a single trip 
• Cost of packing, crating, and transporting household goods and personal effects. 
• Costs for connecting or disconnecting utilities 
• Cost of shipping your car and household pets  
• Cost of moving your household goods and personal effects from a place other than your former home, up to what it would have cost to move them from the former home 
• Cost of storing and insuring household goods and personal effects for up to 30 consecutive days after you move out and before they are delivered to the new home 

During the Move 

Now that you have whittled down your belongings to a reasonable load, you will need to rent a moving truck. This is almost always the cheapest way to move. Call around to at least three companies before settling on one. If you are uncomfortable driving a rented moving truck, the next most affordable option is to hire a portable storage container company to deliver a container to your home. You load the container and they ship it to the new destination for you. This way, you just pack your immediate necessities into your car and drive to the new location.  

If you have not yet started packing, the day you reserve the truck is a great time to start. Use old newspapers and clothing as packing material for fragile items. Pack carefully to avoid damaging items. Pull the drawers out of your dressers and use them as boxes. Clothing can be packing in what I like to call “South Boston matched luggage,” which is just a few plastic trash bags. Hampers make excellent boxes as well. The more items you can find to use as boxes, the more you will save on the cost of real boxes and tape. 

After the Move 

Some things cannot be planned for. You may find you need to purchase curtains or lighting for your new home. Whenever possible, have a tailor alter the curtains you already have to fit your new home. Start looking up thrift stores around your new town and always buy used items for your new home. You will need to be patient before you find all the right  decorations, but the savings will be well worth it.