News & Trending Mortgage & Loans News

10 Reasons Why You Might Not Be Financially Ready for a Move

Are you prepared for the financial burden of a move?

male movers unloading
Updated Nov. 14, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Moving often sounds like an exciting life change. However, a relocation can be a mistake if you are already struggling to get ahead financially.

So before you make such a huge commitment, consider these reasons why moving might not make sense right now.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

You can't cover moving costs

Gorodenkoff/Adobe homeowner welcomes professional mover

It can be expensive to move your stuff. If you have a three-bedroom home, it could cost anywhere between $1,100 to $8,800 to move 1,000 miles, according to research from U.S. News & World Report.

The farther you are headed, the more expensive your move will likely be.

Take some time to run the numbers on how much it will cost to move for your situation. Unfortunately, you might be surprised by the sticker price.

You don't have enough saved for a down payment

Ivan Kmit/Adobe house model on top of money bills

If you want to buy your next residence, you’ll likely need to make a down payment. While you don’t have to put down a full 20% of the purchase price, you will likely need to put down at least 3%.

If you are buying a $300,000 home, 3% translates to a hefty sum of $9,000.

Many would-be homebuyers simply don’t have the thousands in savings on hand to make such a payment.

You can't afford insurance, taxes, and maintenance costs

Ivan Kruk/Adobe plumber

A down payment is just the beginning of homeownership costs. Some of the other costs you will face include insurance, taxes, and maintenance.

Consider what these costs will look like for your area. Depending on where you live, these expenses could take a sizable bite out of your finances.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

You can't take your job with you and don't have a new job lined up

terovesalainen/Adobe man modifying resume using laptop

If you aren’t planning to take your job with you, it’s a good idea to have something lined up before taking the plunge and moving to a new place.

Although it might seem easy to find a new job in your new city, that’s not always the case. That is especially true if the economy turns south.

If you won’t have a job when you move to your new location, at least make sure you have enough in emergency savings to give you a buffer.

You are drowning in debt

Shisu_ka/Adobe stress about debt and bills

If you are struggling to get out of debt, moving to a new place could easily saddle you with additional unwelcome costs. These new expenses could keep you in debt even longer.

However, moving can still make sense if you are planning to relocate to a cheaper living situation or are taking a new job that comes with a significant pay raise. Run the numbers to determine what makes sense for your situation.

You have several months left on a lease and can't afford to buy it out

eccolo/Adobe lease agreement document with keys

Most renters have leases that run a year or six months. Breaking such a lease can be expensive.

If you are renting and can’t afford to buy out the rest of the lease, it’s probably a good idea to stay put for a little while longer.

You don't have an emergency fund

H_Ko/Adobe male hand depositing some extra money in future

A robust emergency fund should hold enough money to cover your expenses for between three to six months.

If you don’t have this safety net for your finances, moving might not make sense. Instead, save up a bit more money before making a move.

You are in the middle of a divorce or other expensive life change

MIND AND I/Adobe signing divorce documents

When you are navigating a stressful and expensive life change such as a divorce, making a move might not be the right decision.

It’s difficult to focus on finding a place that suits your needs and budget when your attention is being consumed by other things. If possible, wait until the storm passes before making any big decisions about moving.

You have other pressing financial issues

WavebreakMediaMicro/Adobe senior couple checking their bills

If you are tight on funds due to other financial goals and obligations, adding a move to the mix could create unnecessary financial pressure.

For example, if your vehicle is on its last legs and you are struggling to save for a replacement, it might not be the best time to make a move.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

You want to move to a more expensive city

Maridav/Adobe moving boxes

If you are planning to move to a more expensive area, your cost of living could rise sharply. Before committing to such higher costs, take stock of your income and budget to confirm you have room for the changes.

Depending on your situation, it might make more sense to stay put for a bit and take advantage of cheaper living where you currently reside. If your financial situation improves, perhaps a move to a place with a high cost of living will make more sense.

Bottom line

xixinxing/Adobe movers unloading a moving van

While it might be tempting to pick up and move, the reality is that this choice has a significant impact on your finances.

So, take stock of your money situation before committing to a move and confirm it won’t overwhelm your finances or derail your wealth-building goals.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details


Author Details

Sarah Sharkey

Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make more informed decisions. She covers mortgages, insurance, money management, travel, and more.