Creating a Budget For The Big Move

Household moves can be a costly, time-consuming affair, even when just moving across town. Due to the variety of costs involved, creating a budget is the best way to keep moving expenses from spiraling out of control. With a budget in place, money is allocated according to need, making it easier to stick with it.

Professional moving companies provide a valuable service that removes the onus of packing, loading, driving and unloading during a big move. While hiring a local mover will add to the expense of a move, steps can be taken to reduce the costs of labor and materials. Moreover, some local moving companies may offer special rates at certain times of the year or for smaller-scale moves. A "you pack, we drive" arrangement whereby a family packs their own belongings and hires a company to move them may be an option, so it is crucial to compare different moving companies to find the best deal for your situation.

A wide variety of fixed and potential costs can arise when moving, chief among them being the expense of hiring a moving company. This could include the price of the truck rental, gas, packing supplies, labor costs (hourly or flat rate), unpacking and packing costs. When shopping around for moving companies, asking for a list of charges will enable you to weigh your options for each business, and compare included costs. Supplemental charges may include:

* Insurance (both vehicle and property)

* Additional labor and/or drive-time fees

* Storage fees

* Ask about any other fees a moving business might add onto your bill

When purchasing insurance for the move, understand that there are three basic valuation types that a moving company may offer.

* Declared value insurance is based on the total weight of a family's possessions with a specific dollar amount set per pound (this option usually applies to long distance moves rather than short hauls)

* Assessed value insurance insures a specific dollar figure per item which must be declared at the onset

* Full value insurance covers all property moved, whether it's lost, damaged or destroyed, although a deductible and minimum amount of coverage are required

When making a budget, first determine the associated costs of hiring a professional moving company. Add to that the cost of insurance and packing supplies. Once the budget is in place, it may be possible to both reduce the cost of moving and add to available funds. Consider raising money by selling anything you're not using or that won't fit into your new home. This will not only provide some financial cushion, but will reduce labor costs, because there will be less to pack and less to move.

When movers must dismantle bed frames, shelving or other furniture, you are being charged for that time, which will add to your costs. Labor costs can be reduced by undertaking some of the preparation beforehand. It can also be beneficial to include space in your budget to provide lunch or soft drinks for your movers if the process will take many hours. Taking care of the people who take care of your belongings is always a smart idea. When moving, eliminate the element of surprise by doing your research and developing a budget. This helps a family keep track of expenses so they don't get out of hand, resulting in a less stressful experience.