How to Pay for Moving Expenses: Should I Finance or Use Savings?

One of the most important decisions when planning a residential move is how to cover your moving expenses. Should you dip into your savings or opt to finance the cost? Both options have their pros and cons, and the right choice could depend on your financial situation and goals. Keep in mind that your moving company is only one piece of the pie, and other expenses add up.

Let’s explore the advantages and disadvantages of each payment option, what moving costs you should prepare for and why working with a professional moving company ensures your money is well spent—no matter how you decide to pay.

Using Your Savings to Pay for a Move

Tapping into your bank account and using your savings can be a straightforward way to cover moving expenses. Here are some pros and cons to consider:

Pros:

1. No Debt: Paying with savings eliminates the need to take on debt, helping you avoid interest payments.
2. Simplified Budgeting: Once the move is paid for, you won’t have to worry about a new, ongoing monthly payment.
3. Cost Savings: You avoid the interest charges that come with financing.

Cons:

1. Reduced Emergency Fund: Dipping into savings can leave you with less money for unexpected expenses, like medical bills, car repairs or a furnace for your new home.
2. Delayed Goals: Using savings might mean postponing plans to buy a home, start a business or take a vacation.
3. Cash Flow Strain: A large upfront payment could strain your immediate cash flow, especially if other costs arise during your move.

Financing Your Move

Financing your move could make the process more manageable, particularly for larger relocations. Here’s what to weigh:

Pros:

1. Preserve Savings: Financing allows you to keep your savings intact for emergencies or other priorities.
2. Flexible Payments: Many financing plans offer adjustable terms, so you can choose a monthly payment that fits your budget.
3. Immediate Affordability: Spreading the cost over time makes moving more accessible, even if you don’t have substantial savings.
4. Extend Lump Sum Payments: If you are moving for work and receive a lump sum payment, you could extend your budget’s reach.
5. Additional Services: By financing your move, you can add additional services like packing or cover the cost of specialty items like pianos.

Cons:

1. Interest Costs: Depending on the financing terms, you’ll likely pay more over time due to interest.
2. Monthly Obligations: Financing adds a recurring expense to your budget, which could strain your finances if not managed carefully.
3. Potential Debt Accumulation: Financed moves can contribute to long-term debt if not paid on schedule.

Other Moving Expenses to Budget For

Hiring professional movers is just one part of the total cost of relocating. When planning your budget, don’t forget to account for other expenses, such as:

• Relocation Costs: These include utility setup fees, security deposits, time away from work and temporary housing.
• The Price of a New Home: Whether renting or buying, initial costs like a down payment, first and last month’s rent or closing fees can be significant.
• Transportation: For long-distance moves, consider the cost of plane tickets, gas or car shipping.
• Food and Daily Necessities: Moving often involves eating out or purchasing groceries in unfamiliar areas, which can add up.
• Child Care: If you have children, you may need to budget for daycare or babysitting services during your move.
• New Home Costs: Consider new furniture, cleaning supplies, cosmetic updates and renovations.

Are Moving Costs Tax Deductible?

While moving expenses were once tax-deductible for most people, recent changes to U.S. tax laws have limited this benefit. Currently, moving costs are only deductible for members of the military who are relocating due to a military order. For others, the IRS no longer allows deductions for moving expenses, including hiring moving companies, truck rentals or storage fees.

However, checking with a tax professional for the most accurate and up-to-date advice is always a good idea. They can guide you on whether there are state-specific benefits or employer reimbursements that may help offset your moving costs. You can also visit the IRS to see if you qualify for a moving expense tax deduction.

How a Moving Company Adds Value to Your Move

Regardless of how you pay, partnering with a professional moving company ensures you get the most value for your money. Here’s why:

• Expertise and Efficiency: Professional movers carefully handle packing, transportation and unloading. They minimize the risk of damage to your belongings and ensure your move occurs on schedule.
• Time Savings: With a full-service moving company, you save time and energy that can be spent on other aspects of your relocation.
• Customized Services: From storage options to specialty item handling, a professional company offers tailored solutions to meet your unique needs. A Bekins agent can take most of the planning and logistics off your plate.

How to Finance Your Bekins Move

At Bekins, we’ve partnered with a trusted financing provider, Enhancify, to make your move more affordable. Our financing program offers:

• Interest Rates as Low as 0%: Depending on your credit, you may qualify for zero-interest financing and save big over time.
• Flexible Terms: Choose how long you want to finance your move, with options designed to fit your budget.
• Quick Approvals: Get pre-approved in minutes so you can confidently plan your move.

By financing through our partner, you avoid costly bank loans and credit card debt. To learn more and apply, visit the Enhancify financing page.

Manage Your Relocation Expenses with Bekins

Planning your moving budget starts with a comprehensive estimate that will tell you exactly how much your move will cost. From there, you can decide if you have enough savings to pay for your move upfront or if financing it and spreading the cost out over months or years is a better option.

No matter how you pay, Bekins will provide you with a concise estimate without hidden fees and professional moving services that will make your move a smooth and enjoyable experience. Contact your local Bekins agent for a free quote and to learn more.