In the course of our 11-year marriage, my spouse and I have shifted residences eight times across five states. You might guess we’re in the military, but that’s not the case. Often our job roles in the defense sector necessitated these relocations. Usually, a job change for us meant exploring opportunities in different companies located in another state.
We’ve had a fair share of experiences from having no corporate-backed relocations to receiving full-fledged relocation support during our latest move. We are now wiser, knowing what to seek and what to steer clear of.
Moving long distances can be quite pricey. Whether the expenses are borne by your employer or you, below are some key financial factors to consider when planning a job-related relocation.
COST OF LIVING CONSIDERATIONS
Before deciding on moving to a different city or state, you should compare the cost of living in each place. There are several reliable online resources, some even allowing comparisons at the zip code level, to assist you in this. However, these tools should be used with care.
We’ve found them handy in our past relocations, but their results were not always accurate. For instance, during one move, we underestimated the cost of living, despite the hints from our online tool. It was only when we started house-hunting that we realised our miscalculation. Local houses were comparably priced to our previous location, but their conditions varied widely.
So, while online calculators are a helpful starting point, exercise caution and conduct supplemental, thorough research, especially concerning the major budget components.
INCOME RESEARCH
Should you decide to proceed with your move, do some research on the potential income range in your new location before interviewing. Use platforms like payscale.com for insights into area-specific salary brackets based on your qualifications and job experience. Use websites like glassdoor.com to gauge the salary ranges for your role specifically within the company you’re targeting. This will enable you to ensure a sustainable way of living in the new area.
RELOCATION PACKAGE
Congratulations on landing your new job after clearing the income and cost of living hurdles. The euphoria, however, is typically quick to dissipate with the looming challenges of moving. As a property owner, you’ll have to put your house up for sale, or find a new place to rent or buy in your new city – all quite taxing tasks. A comprehensive relocation package can help alleviate this financial stress.
Comprehensive doesn’t necessarily mean unlimited. Some companies provide a fixed relocation package which may or may not fully cover your moving requirements. Therefore, during negotiation, be clear about what you need. Particular expenses to factor in when negotiating a relocation package include:
HOME SALES: As a homeowner, you’ll have to sell off your house, a potentially pricey affair. Some employers may help you buy your house, but you’ll have to decide if you’re better off selling it yourself depending on market conditions.
PACKING AND MOVING: Packing supplies and professional movers contribute to your moving costs. If it’s a cross-country move, hiring professional movers is wise, however, renting a U-haul could save you some money.
FLIGHTS: You may need to make multiple air trips especially if you’re moving far.
AUTOMOBILE RELOCATIONS: Besides your household goods, your vehicle will also need to be moved. This could be done via vehicle-moving services or by the same company that moves your belongings.
HOUSE HUNTING TRIPS: It’s advisable to make a home hunting trip before your move. This may increase your meal and accommodation budgets.
TEMPORARY HOUSING: Keep in mind the cost of temporary housing arrangements, especially if you have kids and pets.
PET MOVING: If you own pets, they, too, need to be transported, which could mean extra costs like vet appointments and airline fees.
RENTAL CARS: Renting a car might become necessary until your car arrives.
LEAVE: Considering your accrued leaves might be forfeited with your job change, negotiate for upfront leave to settle in comfortably in your new home.
A cross-country move can be quite expensive, and while some of these elements can be skipped if you were to move yourself or move a short distance, don’t be stuck with all the expenses if your employer requires you to move. Be sure to negotiate.
Have you ever experienced any financial setbacks during a cross-country move? Have you ever negotiated for or requested a relocation package? Do share your experiences with us.
