Job Relocation Costs

What are the real costs of relocating for a new job?

Whether or not to move is always a huge decision to make.  The costs of moving are never cheap and can really hit you where it counts – your bank account.  However, your bank account may not be the only cost you take on.  Therefore it is important to factor in what all your actual costs of moving truly are.  To determine if relocation is feasible you must consider a number of factors before you make a final decision. 

Salary:

Often people will get a new job offer or career opportunity and get really excited once they learn what their new salary will be.  This is great however salary is only one part of the overall cost/benefit story.   Therefore you must compare your overall costs to the salary or wage you will be receiving in order to decide whether relocation is financially possible.  One must realize that even if you make more money, it could take several months to pay back the move.  If you are only making enough money to get by from paycheck to paycheck, then relocating may not be a good idea.  This is especially true if you end up taking on substantial debt while doing so.  As well, if you are married or in a relationship, you must consider your partner’s current wages and whether or not he/she will be able to acquire new work.  In today’s world this is often an issue as most households have more than one income.

Cost of Living:

Make sure to investigate what the costs of living will be in your new area.  Are the rental and real estate prices lower, the same, or higher?  Housing costs can vary considerably between different areas or regions.  Some cities can be substantially more expensive than others, so be sure to look into these costs before even considering relocation.  Local newspapers and the Internet (don’t have to leave home) can often be a great resource for finding out these costs.

Basic services are usually fairly competitive throughout all regions of a country however they are important to assess as well.  Services such as telephones, cell phones, internet, cable, etc can all vary in cost.  It is important to have a look at what the rates will be in your new area.  Furthermore look at the availability for each specific service.  Some regions may only have dial-up internet (slower) or have poor cell phone reception.  Although some of these factors may not cost you considerable money, they do add up over time and could cause substantial inconvenience. 

For everyone who drives a vehicle, remember to factor in the fuel costs.  Although overall gas prices fluctuate with world markets, there is a definite variation in prices depending on where you live.  If you are planning on doing a large amount of driving once relocated, this is a very important factor to look at.

For everyone who uses public transit, this cost should be factored into your overall expenses.  Transit passes and tickets can vary substantially from city to city.  This can often depend on how much the public transit is subsidized by the local governments. 

Insurance rates are usually different as well depending on where you live.  Things like car, home and theft insurance can all have a huge impact on your wallet.  For example, in some countries the rate of car insurance can vary from anywhere from $1000/year to $5000/year depending on what state or province you are living in.

Today, food costs are usually fairly constant in most towns or cities.  However, this is not the case if you plan on relocating to a new country or a remote location.  Look into what the cost of groceries are by calling local grocery stores or contacting someone that lives there or knows the area. Ask for the average prices overall to get a good idea of what your weekly costs might be.

Overall City Appeal:

Find out what the city or region you are moving to is like.  Does it have a lot of community involvement?  Is there a high crime rate?  Do you have family or friends there?  These are all factors (costs/benefits) that may not cost you money, but may affect your overall willingness to relocate.

Looking at the overall big picture will help you evaluate your costs and ultimately decide whether moving is feasible.  Once you’ve looked at all the factors such as your salary, cost of living, and overall city appeal, you’ll be able to make your relocation decision much easier.

Courtesy of: The Job Helper