How to budget for a long distance move without going into debt

I’m ready to break up with Texas.

I moved to Austin eight years ago and never thought I would want to leave. It’s a great city with relatively affordable housing, access to green outdoor spaces and an unparalleled music and arts scene. It’s easy to get around without a car (I ride a moped) and you barely have to walk a mile without bumping into a body of water, which is probably what I love most.

Despite the positives, it’s time to pursue my dream of living in Seattle. Before you ask me about the wet weather, I will say that it is one of the many reasons I want to leave Texas. We haven’t seen rain in months. I also really long for a city with reliable public transportation, and Seattle checks that box.

As a Gen Zer in your 20s juggling student debt and high rent costs, I know that saving money to move West requires a solid budget and a whole lot of discipline. Luckily, I’m a personal finance writer with great expert tips on how to balance paying off debt and saving money.

How I Budget to Move West

I’ve been casually thinking about moving to Seattle, but after my most recent visit this summer, I knew it was time to start planning my move. I sat down and ran the numbers, asking myself the obvious question: Can I really afford this?

More specifically, how much will it cost to get there, and how much will I spend on housing?

To complete this step on my own without racking up debt (and to save some money just in case), I’ll probably need to save $10,000. Since I don’t work on a tight schedule, I think I can easily do that in two years. This is how I divided my moving budget:

Tips for smart financial planning before a move

Everyone has different motivations for moving and has different economic and family circumstances. But whatever your situation, you’ll want to consider how much cash you realistically need to move and how you can manage it logistically.

✍🏼 Calculate your moving budget

You do not want to be faced with unexpected costs during the moving process. The hardest part is coming up with an estimate for your savings goal. Think of it as a puzzle and answer these questions:

• How much do you need to ship or transport your belongings, or to hire movers?

• If you fly, how much do you need to buy a plane ticket? When you drive, how much do you spend on gasoline?

• What is the average cost for a one bedroom apartment or studio? How much do you need for the first month’s rent and deposit?

• What miscellaneous costs may arise? Consider some hidden costs such as construction costs, internet, water, gas and electricity connections, etc.

🏦 Start a sinking fund for moving costs

A sinking fund is essentially a savings account, but you set money aside for a specific purpose. This method keeps your goals separate so that your sinking fund (in this case, your moving fund) doesn’t get confused with an emergency fund or other savings goal.

By keeping your moving fund in a high-yield savings account, you can take advantage of better interest rates. In a high-yield savings account that earns compound interest, you won’t just earn extra money on your first deposit. Your interest also earns interest, which helps you save faster.

💰 Save as much as possible (automatically)

Once you’ve created a budget and opened a high-yield savings account, it’s time to start saving. Set up automated recurring transfers to transfer money to your savings account on a schedule that suits your finances. I like this method because it keeps me accountable. You’ll never have to manually deposit money again, eliminating the possibility of backing out and saying, “Hmm… maybe I’ll skip this month.”

Every two weeks, a small part of my salary is automatically deposited into my savings account. I also put aside about 50% of my extra income as a dog sitter. By consistently adding money, I’m on track to double my savings by the end of the year.

⏱️ Time your move strategically

Because I work remotely, I have the flexibility to move whenever I want, which allows me to avoid the peak of moving season. Summer is typically the busiest time for long distance moves, so I aim to move later in the year when costs are more reasonable.

If you don’t have flexibility or you’re relocating for work, apply for relocation compensation and research the best time of year to move to your next location.

🏋🏽‍♀️ Enlist the help of friends and family

Relying on my social network is the key to staying within my moving budget. My older brother already lives in Seattle with his partner, so I have the benefit of two more sets of helping hands and a place to stay temporarily. Keep an eye out for house sitter options, which can keep costs down if you need a soft landing before moving into your new home.

🚚 Don’t hire professional movers

Hiring professional movers to pack your belongings, load everything into a truck, and move across the country is probably the most efficient (and expensive) way to move. Take the time to research the cheapest and safest ways to transport your belongings.

I opt for a do-it-yourself approach. Don’t tell my parents, but I’ve already recruited them to be my moving team. I’m planning to buy a shipping container instead of transporting my stuff in a moving truck. Depending on the moving distance and the square footage you need for your belongings, you will likely spend less on purchasing a moving container or renting your own moving truck.

✂️ Purify, purify, purify

If it doesn’t evoke some emotion, it’s not coming to Seattle with me. I plan to sell quite a few things, including the random Nixon camera collecting dust in my closet and the bulky closet I inherited from a previous roommate. I also have some pieces I don’t want to part with, including my green velvet sofa and vintage iron bed frame.

As the time to move approaches, I will have to make some tough decisions, especially regarding my trusty moped. Austin was a great city to rely on a scooter, but in Seattle it will be more challenging.

What you should pay attention to as a new tenant

I’m nowhere near in a position to buy a house yet, so I’m a serial renter. Just like the housing market in general, the rental market is expensive and competitive. Don’t settle on one zip code, as you may need to broaden your search based on availability and affordability.

In addition to budgeting and growing your moving fund, you may also want to consider the following before moving to a new place:

• Improve your credit score. If you are a first-time renter or have limited credit history, you may need a cosigner to secure an apartment. Know your credit score before you start your apartment search to avoid unnecessary roadblocks.

• Know what your landlord expects from you. Your landlord will want a security deposit and the first month’s rent, as well as proof that you can pay the rent above that. Consider these costs in your initial budget.

• Take the longer term costs into account. In addition to recurring expenses such as utilities and Wi-Fi, parking can often become a costly expense in the long run. If you have a car, it’s worth considering parking costs, insurance and maintenance.

• Organize your documents. Organizing your documents in advance can speed up your rental application process. Gather recent pay stubs, bank statements, and a copy of your photo ID before these documents are lost in the moving abyss.

• Determine if you need a roommate. Splitting rent, utilities, and Wi-Fi can significantly reduce your financial burden. Consider your budget before deciding what size apartment you need and whether you should find a roommate.

• Start looking for places early. Unless you have temporary housing, you may need a place to live before arriving in your new city with your belongings. Set a timeline to explore the market once you have the money. You can work with a real estate agent or a housing/rental app to help you find something that falls within your target date range and price point.

Read more: 6 Gen Z hacks to save money when rent is too high

What’s next?

My current apartment in Austin is the first “adult” place I lived after leaving my parents’ home. As I begin to put together my next chapter in Seattle, I recognize that not everyone has the luxury of saving money before making a long-distance move, but I don’t want to start my life in a new state with moving debt.