Should You Move For a Job?

Have you received an interesting offer to live and work somewhere else? Moving to a new city can be very stressful, especially if it involves changing jobs or re-locating with an existing employer. While this stress can be heavy on the person dealing with the job change or transfer, it can also affect others.

Before you accept the move and start plotting your appearance on HGTV’s House Hunters, you and your family will have to work through some tricky decisions. That’s the scenario my fellow planner Brian Kelly, CFP® was discussing with an employee on our Financial Helpline recently. Here’s what he had to say:

1. Don’t base your decision solely on the new salary. Think about how far your income will go in the new city. If you are moving to a place where the cost of living is much higher, you might have to eventually answer this question: “Is the location worth it?” The answer to this question might just be “yes, it is worth it to live in a smaller house near the ocean or have to spend more in a town that has more amenities,” but this is a trade-off that you should be aware of. You will also want to consider new expenses you are not currently budgeting for such as traveling to visit family and babysitters.

2. Calculate your net pay after benefits. Employee benefits are now a large part of a person’s compensation. Taking a new job with a salary increase but weaker benefits can actually decrease your total compensation so factor these in. See this guide for calculating the value of your benefits.

3. Consider your spouse’s career too. Think about this in a longer term perspective. In 5 years, is our “team” going to be better off?

4. How does the move affect your children? Moving children can have effects on their education, their relationships and possibly their well being. Do some research on school systems and after-school care. This might impact your decision on where to buy or rent.

5. How does it affect your parents? Some grandparents’ retirement plans center around time with their children and grandchildren. Others will need elderly care. You might need an extra bedroom in your new home.

6. Should you purchase a home right away or is it wise to rent for a certain time period? Purchasing a home is a major financial decision. The closing costs alone can make a short-term home buying decision a bad one if you have to sell before the house appreciates in value.

7. Lastly, you have to consider the real possibility that it doesn’t work out, for whatever reason, and have a plan B. Companies fail, managers can be impossible to work with, the job doesn’t turn out how you thought it would, parents get sick, or you just miss home.  In that case, have a backup plan.

Checklist of things to do:

  • Create a side-by-side budget with current and new income and expenses. Factor in cost-of-living and benefit changes.
  • Have a family meeting with spouse, children and/or parents to discuss how the potential move will affect them.
  • Visit before you make the final decision. See the new work facility, meet and interview people you will work with and check out schools and areas where you might want to live.
  • Research school districts and after-care if necessary.
  • Compare the costs of renting and buying a home. Consider renting, even if it’s temporary, until you are sure of where you want to live.
  • Articulate a plan B just in case.

Once you’ve worked through the action steps, the wisdom of one path vs. another should be more clear. What does your head tell you? Your heart? The balance of both will help you make the best decision for you and your family.

 

Do you have a question you’d like answered on the blog? Please email me at [email protected]. You can follow me on the blog by signing up here, and on Twitter @cynthiameyer_FF.

 

 

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