Financial Tips for Moving to a New City

Moving to a new city can be one of life’s most exciting transitions. Whether it’s for a new career opportunity, educational pursuit or a fresh start, relocation brings a mix of anticipation and uncertainty.

Amid the excitement, the financial impact of moving is often underestimated. Between moving trucks, deposits, cost-of-living adjustments and the chore of re-establishing financial services, expenses can pile up quickly. But with careful planning, you can reduce stress and focus on making the most of your exciting new chapter! Here’s how.

Budget for Moving Costs

One of the first steps in preparing for a move is understanding the expenses involved.

• Professional Movers vs. DIY: Hiring movers provides convenience but comes at a premium. Some companies have surcharges for things such as mileage, wrapping breakables and even for carrying up or down flights of stairs. On the other hand, renting a truck and handling the move yourself can save money but may add stress and require help from friends or family.
• Hidden Expenses: Beyond the obvious costs, factor in packing supplies, gas or mileage fees, hotel stays if traveling long distance, and potential storage rentals.
• Deposits and Fees: Many landlords or utility companies require deposits upfront. Having cash set aside for these expenses can prevent financial surprises.
• Emergency Buffer: Experts recommend adding at least 10–15% to your moving budget for unexpected costs, such as replacing broken items or covering delays.

Research the Cost of Living

Adjusting to the financial reality of your new city is crucial.

• Housing: Rent or mortgage payments are often the largest expense. Research neighborhoods carefully to find a balance between affordability and convenience.
• Utilities and Services: Electricity, gas, water and internet costs can vary widely by region. Some areas may also require deposits to establish new accounts.
• Transportation: Consider whether you’ll need a car, how much insurance might increase or whether public transit is a cost-effective option.
• Taxes: Some cities and states have local or higher income taxes, while others do not. Sales taxes can also impact your budget more than you expect.

Using an online cost-of-living calculator before you move can help you anticipate changes and adjust your budget accordingly.

Plan for Housing and Utilities

Finding housing in a new city comes with unique financial considerations as well.

• Renting: Expect costs like application fees, security deposits (often equal to one month’s rent) and sometimes pet deposits. Make sure these upfront costs are included in your moving budget. It’s also important to remember that it’s not uncommon for your rent to increase at lease renewals to match market prices.
• Buying: If purchasing a home, research local mortgage rates, property taxes, homeowners insurance and any potential homeowners association dues. These may differ significantly from your current location.
• Utilities: Set up utilities before moving day to ensure a smooth transition. Be prepared for deposits if you’re new to the area or don’t have a payment history with the utility provider.
  • Pro tip: If possible, shop around with different utility companies to find the best rate. It’s also wise to ask about any new customer promos or discounts.

Establish New Banking Connections

Banking is often overlooked during a move but can make daily life much easier.

• Branch and ATM Access: If your current bank doesn’t have locations near your new city, consider opening an account with a local or regional institution or checking to ensure you have easy online access and ATMs near you that are still in-network and fee-free.
• Digital Banking Tools: Reliable online and mobile banking ensures you can deposit checks, transfer money and pay bills seamlessly - especially during the busy moving process.
• Update Your Address: Notify your bank, credit card providers and lenders of your new address to avoid missed statements or security concerns.
• Build Local Connections: Community banks often provide personalized service and insight into the local market, which can be helpful when adjusting to a new area.

At OMB Bank, we make switching to us a breeze!

Update Your Financial Accounts and Documents

Moving requires a checklist of updates to ensure your finances stay in order:

• Update mailing addresses on all financial accounts, including bank accounts, credit cards and loan providers. It’s crucial to coordinate with the post office as well so they can get your address updated and your mail forwarded, as needed.
• Notify your insurance companies, including auto, renters or homeowner’s insurance. Premiums may change based on your new location.
• Update government documents such as your driver’s license, vehicle registration and voter registration.
• Establish a new primary care physician, dentist and optometrist, if you need one.

Build a Local Safety Net

Settling into a new city takes time, and a financial cushion can ease the transition.

• Emergency Fund: Aim to keep at least three-six months of living expenses set aside. This ensures you’re prepared for unexpected costs like medical bills or job changes.
• Networking and Community: Building local connections can provide career opportunities and a sense of belonging, both of which contribute to financial and personal stability.
• Explore Local Resources: Explore community programs, local chambers of commerce and professional groups to learn about financial opportunities and support.

Relocating to a new city is more than just a physical move - it’s a financial and life shift that requires preparation and awareness. With a plan in place and by making smart moves ahead of time, you’ll be free to focus on the excitement of discovering your new community and building a bright financial future there. 

OMB and its affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decision.