Many people see packing up and moving to a new city as an adventure. If they are unemployed, it can open up job opportunities that do not exist where they currently live. But before relocating, there is planning to be done.
Relocating without any financial planning or a job is obviously not ideal. People move for many reasons, including a young person striking out on their own, a life-changing event such as divorce or a strained family relationship and many more.
It is important to remember that the decision to move on does not have to be justified to anyone, just make sure it is the right one, and that there is a financial plan in place to pay for the move and tide one over while one is looking for a job.
Moving without money
There are many factors to consider when making a decision to move, some that may not immediately come to mind when someone is making a decision.
Relocating to a new city is not just a question of packing up and finding a new place to live. Moving is expensive and there are things that should be considered.
Cost of living: How much does the target city cost compared with the current place? Use the current income as a base and compare how much one must earn to enjoy a similar quality of life in the new city.
Moving costs: Moving one’s belongings is not cheap. The cost depends on how much stuff is to be moved and how far. Essentials one needs to spend money on include packing materials (unused boxes if possible), hiring a lorry to transport furniture, petrol and accommodations overnight if it is a long trip.
Most of these costs can be mitigated if an employer is willing to pay relocation costs. Those who not already put aside money to cover moving costs should start now.
Housing deposit: It takes time to start a new job. The interview process, candidate evaluation, paperwork and preparing for a new hire to start work take time.
It could take weeks before one can start a new job, plus the wait for the first pay cheque once one starts work.
Relocating without money or a job can trap someone in a lease they cannot afford. It is best to stay with a family member or friend, or look for a short-term rental until the finances are in order.
The best city to start over with zero income: When it comes to deciding which city is the best to move without money, look for a place with an affordable cost of living, promising employment opportunities and existing relationships with close family members or friends.
Pay down debt: Unless one is debt free, credit card debt and student loans are excess baggage that follow one everywhere. Missing payments can incur late fees that can hurt the credit score and build up interest.
Clear as much debt as possible before moving without a job. At the very least, plan ahead so there is sufficient money in the bank to meet several months of payments.
Save as much as you can: Ideally, one should save at least six months’ living expenses to help fund the relocation.
Deposit a portion of the current pay cheque into savings. Those aiming to relocate as soon as possible would need to save at least 30% to 40% or even more of one’s income to accumulate enough cash. A tax refund, performance bonus from the current job and side income can help increase savings.
Sell belongings: Selling possessions would mean having fewer things to pack up and it would boost the funds. Collectables and electronics can be sold physically or on the internet.
The individual could even consider selling the car to reduce expenses and increase savings if public transport is a viable option.
Reduce expenses: The main expenses are housing, transport and food. Beyond that, there would be expenses here and there throughout the month.
Minimising expenses will help save money before relocating. Savings can be found by stopping streaming services via subscription, giving up the gym membership (look for free alternatives) and cutting back on non-essential expenses.
This article first appeared in jobstore.com
Jobstore is an online job site that specialises in providing jobseekers with the latest job opportunities by matching talented individuals with reputable companies in Malaysia. Find your dream job with over 40,000 job vacancies in Malaysia.
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