Posted by Thinking about relocating to a new city with little to no money and unemployed? If you wish to pick up and move without any planning, you are not the only person in this situation. For young people, the thought of starting a new life in a different environment can be exciting. To set things in motion, you will need to get your own personal finances in order.
Moving without money
Relocating without any financial planning or a job is the worst situation you don’t want to be. If you are already in that state, perhaps you want to:
- Move out of your parents’ house for the first time?
- Leave your college town after graduation?
- Dealt with a life-changing event such as divorce or strain family relationship?
- Moving away from an unhealthy relationship?
- Restarting your life with a clean slate?
You don’t have to owe other people an explanation of why you made this decision to move on, but you owe yourself for taking a path in hopes of reaching the next stage of your life.
What you should consider moving on without money
There are many factors to consider in starting a new slate and there are things that you may not have really considered along the way. Relocating to a new city is not a simple feat where you can just simply pack your belongings and find a new place to lay back. Moving is very costly!
Take a moment to consider these factors:
Cost of living
How much does your target city cost compared to where you currently live? Calculate your current income into cost of living to compare how much you actually need to end up earning to enjoy a similar quality of life in the new city.
Moving costs
Moving all your necessary belongings is not cheap, the cost depends on how much stuff you want to move and how far are you moving away.
Essentials that you need to spend money on:
- moving supplies ( get unused boxes if possible)
- rent a truck if you are bringing along furniture
- gasoline
- night accommodations if it’s long distance travel
Most of these costs can be mitigated if you got yourself an employer who can support your relocation. If you have not saved up money for these relocating costs, you better start managing your personal finances now.
Housing security deposit
It takes time to start a new job regardless of how well prepared you are for the interviews. It would take time for employers to complete the interview process, candidate evaluation, paperwork and prepare for a new hire to start work. Even if you are highly aggressive in job hunting, it would still be going to take weeks before you can even start on your new job. Not to mention the time it takes for you to earn your first pay check after the first day on the job.
The biggest risk of relocating without any money or jobs can trap you in an apartment lease that you cannot afford. It is best to stay with a family member or friend or look for a short-term rental option until you are well financed.
Your first paycheck
It takes time to start a new job regardless of how well prepared you are for the interviews. It would take time for employers to complete the interview process, candidate evaluation, paperwork and prepare for a new hire to start work. Even if you are highly aggressive in job hunting, it would take weeks before you can even start on your new job. Not to mention the time it takes for you to earn your first pay check after the first day on the job.
Related: How to Manage Your Money As A Fresh Graduate
The best city to start over with zero income
When it comes to deciding which city is the best to move without money, you should look for a place with:
- affordable cost of living
- promising employment opportunities
- existing relationships with close family members or friends
Pay off your debt
Unless you are debt free, credit card debt and student loans are excess baggage that you are forced to drag along with you regardless if you stay in a new place. Failure to miss out your payments can incur late fees which can hurt your credit score and build up unnecessary interest. It is best to clear away your debts before making the life-changing decision to move without a job. At the very least, try to plan ahead so you have sufficient money to clear off several months of payments in your bank.
Save as much as you can
Ideally, it is best to save at minimum six months worth of your projected living expenses to help fund your relocation. You will need the money to shift all your belongings, find a suitable place to stay, and sufficient time to find a job without any concern about your next meal.
Start depositing a percentage of your current paycheck into savings. If you are aiming to relocate as soon as possible, you will need to save at least thirty, forty per cent or even more from every paycheck to accumulate enough cash. Your tax refund, performance bonus from your current job, side incomes can help increase your savings.
Related: The Best Personal Budgeting and Finance Tools
Sell your belongings
Selling away your possessions can support you in terms of having fewer items to pack up and help your financial gains to boost funds. Items such as on-demand collectables and electronics can be sold through physical or internet marketplace. You could even consider ditching your vehicle if you are staying in a city where public transportation is more accommodating to reduce your expenses and improve your savings.
Reducing your expenses
Most of your expenses are mainly utilised for housing, transportation and food. Beyond that, you may be spending on various minor transactions throughout the month. Here are some of the items and services that you can cut cost.
- streaming services via subscription
- monthly gym membership, find alternatives means without incurring any cost
- any non-essential expenses that you can cut back on
Minimising your expenses will help you save up money before you relocate, take this opportunity to challenge your monthly spending habits and run a tight budget.
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You Jing is a content writer who writes career and lifestyle contents to inspire job seekers and employers alike on their journey to work-life balance, empowerment and transformation in their career path.
Reach me at youjing@jobstore.com