How to Manage Your Finances When You Move House

Moving house rarely goes smoothly, there are always going to be bumps in the process that you simply can’t account for. However, the more you prepare yourself financially for the big change, the easier the move will feel. It can be difficult to calculate every single cost you’ll encounter when you move house, and you may have some unexpected surprises along the way, but overall managing your finances is achievable. With this in mind, here’s a helpful guide on how to manage your finances when you move house:

Calculate the Costs of Moving

There’s no getting around the fact that moving home is expensive. If you’re buying as opposed to renting, the fees and extra costs amount to around £12,000. In order to fund your move, you’ll need to have substantial savings available, as you won’t get the money from your old house until after you move – in some cases it’s a long process if mortgage providers are dragging their heels. One way to get a quick cash boost is by using bridging loans. It’s effectively a helping hand for when you’re in the middle of selling your old home and moving to your next home. You’ll then be required to pay it back within a certain amount of time. An alternative to this would be to use your own savings or borrow money from a bank or family and friends. If you’re borrowing money from family or friends, then make sure you have a payback plan in place to minimise any disputes.

Draft A Budget

Once you’ve calculated the costs of moving you should have a better understanding of how much money you’ll need to use, whether that’s from your personal finances or through a loan. You can then draft a budget for each planned expenditure. This will help you to keep on track with your finances throughout the process and will make you feel more in control of your spending.

Cash for A Rainy Day

When you’re drafting your moving budget, be sure to set aside some cash in case something goes wrong where you need money quickly. This could be due to a setback or other event, and the amount you keep by is entirely up to you. Don’t spend a penny of your emergency money until the move is fully complete, as something could still potentially go wrong even in the final stages.

Decoration and Renovation

Once you’ve moved into your new home you’ll be keen to give it a personal touch by decorating it in your style. This can be an expensive venture, particularly if you’re planning on renovating any rooms. You could take out a renovation loan to cover these extra costs, or simply include it in your budget plan. When you do start the decorating process, keep costs down by comparing prices and shopping savvy. Many kitchens, bathroom and furniture companies have seasonal offers that could save you thousands. If you don’t need a particular item immediately, or you’re waiting to replace an old piece of furniture, then hang on until the summer or winter sale. Your patience could save you a lot of money once the big deals come around.