Managing Post-Move Budget Adjustments

By Yolander Prinzel | January 30, 2012 AAA



It would be difficult to move from your current home into a new one without some changes to your living expenses occurring. This means you are bound to have some adjustments to make in your budget, which may be easier said than done.
TUTORIAL: Budgeting Basics

All That Comes in Should Not Be Going Out
In any budget - pre- or post-move - you should not spend more than you earn. In fact, you should always spend enough less than you earn so that you have room to put some money toward an emergency fund, retirement and short-term savings. When you look over the post-move numbers, make sure that you are still able to afford all of your bills that support your lifestyle and save money while paying down debt. (For related reading, see Saving For Retirement: The Quest For Success.)

Preparing for the Unexpected After a Move
While some new expenses are easy to predict, such as gas needed to travel back and forth between your new home and work, homeowners insurance, cable bills and grocery costs, there are some bills that you might not be able to anticipate until you've actually lived in the home for a few months. The biggest of these bills is your electric bill. Heating, cooling, lighting and powering your new home may be more or less expensive than your old home depending on its size, insulation, building materials and more. Leave a cushion in your budget to cover the fact that it might be more expensive - and consider a similar cushion for all other hard-to-anticipate bills. Also, try to live conservatively in order to help control costs. Pay attention to where you have the heating and cooling temperature set, switch to compact fluorescent bulbs and power down any electronics that don't need to be on 24/7. (For additional information, read The Hidden Costs Of Home Ownership.)

Tweaking the Non-Necessities
If you find that after moving you can't save as much or pay off debt as quickly as you once did, and that it's going to hurt your ability to meet financial goals, then you need to tweak your new budget. The easiest way to do this is to look at all the non-necessities in your monthly expense file, like cable and entertainment expenses. You can also try to control the spending of your necessities by living frugally and controlling power usage, grocery expenses and limiting dining out.

The Bottom Line
It isn't always easy to fit your old budget into a new shaped house, which is why you shouldn't try to. Make your income work with your new expenses by adjusting your non-necessities and keeping some room in your budget to cover the unexpected. (Check out, Are You Living Too Close To The Edge?)

comments powered by Disqus
Related Articles
  1. I Want Christmas To Be Debt-Free
    Budgeting

    I Want Christmas To Be Debt-Free

  2. 13 Confusing & Scary Things Frugalists ...
    Savings

    13 Confusing & Scary Things Frugalists ...

  3. 7 Secret Fees Cutting Into Your Travel ...
    Budgeting

    7 Secret Fees Cutting Into Your Travel ...

  4. Planning A Fun, Frugal Halloween
    Budgeting

    Planning A Fun, Frugal Halloween

  5. 4 Tips To Cut Your Monthly Car Costs
    Budgeting

    4 Tips To Cut Your Monthly Car Costs

Trading Center