My twenties have been defined by the moves that I have made: in my relationships, in my career, and especially in my apartments.  As the people and jobs change, so does our location, it seems.  While I have enjoyed all the moves that have helped me to evolve into the person that I am today, as I enter my thirties I am excited to start settling down and growing some roots.  As I gear up for another move, which will hopefully be my last for a while, I’m more prepared this time around to think of it from a budgetary perspective.  That’s probably because I finally have a budget that will allow me to get some of the things that I really want!  However, from my experience, I’ve learned that moving has many hidden expenses you may not anticipate.  These unforeseen expenses could have a big impact on your overall budget.  Here are my saving money tips to consider if you’re about to move, preparing to move, or just dreaming of moving in 2014.

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Tip #1 - Make a spreadsheet of your current living expenses

One of my saving money tips is to get an accurate snapshot of your financial situation.  I’ve learned that simply saying, “Well I make x amount per month, so I should be able to afford x per month in rent” doesn’t exactly pan out.  There are so many expenses you’ll encounter above the cost of your rent that you might not think of until you map them out.  Itemize your list with expenses such as cable, electric, commuting costs, phone, food, and fun.  Then you’ll have a more realistic picture of what you can afford.

Tip #2 - Evaluate your expenses for opportunities to save

Now that you have all of your expenses itemized, one of my saving money tips is to take this opportunity to see where you can cut costs.  I have a friend that realized she was spending over $1000 per month on dry-cleaning.  Sometimes, it takes mapping out your expenses to see the opportunities to save.  My fiancée and I realized that with how much we use our car, it’s not worth paying $400 per month to park in a New York City garage.  We have actually decided to sell our car, which will benefit our budget even more! 

Tip #3 - Identify your “hard lines”

Where will you not compromise?  Maybe you NEED a doorman building.  Maybe you are willing to forgo a doorman in order to be in the perfect location.   Chances are you’re not in a position to get every single thing on your must-have list.  But make sure you are getting at least a few of the things that are most important to you.  For me, I absolutely need to have laundry in my building.  Laundry in the building is the most important factor for me, after location, for which I know I will allot a large portion of my budget.  Determining your priorities helps you figure out a road map for what you can afford.  It also helps to highlight the other items on your wish-list where you might be willing to compromise.

 

Tip #4 - Broker or no broker?

For my apartment search, we’ve decided it’s important to make the best move that will allow us to stay in one place for a few years.  We’ve realized that having a broker will give us the best advantage for finding the right home.  Brokers get rental and sale listings first and have the best pulse on the market in terms of pricing and location.  But you definitely pay more for their service…in NYC it’s often 15% of your first year of rent, which can really add up.  One of my saving money tips is to utilize Streeteasy.com to search for fee and no-fee listings.  I also recommend leveraging your network.  Ask everyone you know who lives in your desired location about buildings they like or if they know of apartment availability.  Nothing is better than a first-hand recommendation!

Tip #5 - Do you NEED a moving company?

Some moves are more complicated than others, but many times, if you’re willing and able, you can move yourself without the help of a moving company.  I have moved 3 times in the last 4 years and I only hired a moving company once.  While it makes the process exponentially easier and I would argue it can be worthwhile, some moving companies can charge you up $1000 for the day in most locations.  Look for a moving company that charges under $250 or move yourself and you’ll save big!

Tip #6 - You CAN negotiate

Many people don’t realize you can negotiate rent.  Most of us think negotiation only applies when you’re buying real estate, but this simply isn’t the case.  If you can’t directly lower the monthly rent, one of my saving money tips is to see if the building/landlord will offer one month’s rent free.  When you factor in one month of free rent over the course of a year, it actually lowers your monthly payments; which is a great way to save. 

There is nothing more satisfying than feeling like you got everything you want in your new home and stayed within your budget.  It is possible - but it requires careful analysis, a few budget cuts, and thoughtful planning.

 

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