With the rise of remote work, some women may be considering relocating for a number of reasons, such as moving to a larger home or being closer to family. However, there are a number of factors working moms should consider before making a move. In today’s “Financially Savvy Female” column, we’re chatting with Charlotte Cowan Geletka, CFP, managing partner at Silver Penny Financial Planning, about what some of those factors are.
Keep Up With the Latest: Sign Up for The Financially Savvy Female Newsletter
Stay in the Know: Read More From the Financially Savvy Female
Don’t underestimate the cost of the actual move — this needs to be factored in when comparing the costs to live in your current home compared to your desired new location.
“You can spend thousands of dollars moving and getting set up,” Geletka said. “You’re so emotionally invested in getting the home, but you’ve got to get yourself there, plus all the setup costs — furniture, all that kind of stuff.”
Taxes can vary greatly from state to state and even city to city. In addition to income taxes, pay attention to estate tax, inheritance tax, sales tax and property tax.
“People look at housing costs and they don’t look at all the other things,” Geletka said. “Take what you’re spending now and add it all up. Itemize it out.”
This includes everything from your weekly grocery bill to how much you spend on dry cleaning.
“You have to look up the child care costs in your area because that is going to be a significant part of your costs,” Geletka said.
This can be an especially large factor if you are moving away from an affordable (or free) child care arrangement.
Breaking the Glass Ceiling: How To Land a Leadership Position
“Say you move to the Midwest and you buy a house that costs less, but let’s say you’ve lost a cheap child care arrangement so now you have to go full price on child care,” Geletka said. Those costs can greatly up your overall living expenses so need to be considered.
A change in location sometimes requires a major change in how you live — which can add additional costs.
“Say you need a car because you lived in a city and you didn’t need a car,” Geletka said. “Add that cost in. Or you moved to a different climate so you need warmer clothes. It’s not just the house.”
GOBankingRates wants to empower women to take control of their finances. According to the latest stats, women hold $72 billion in private wealth — but fewer women than men consider themselves to be in “good” or “excellent” financial shape. Women are less likely to be investing and are more likely to have debt, and women are still being paid less than men overall. Our “Financially Savvy Female” column will explore the reasons behind these inequities and provide solutions to change them. We believe financial equality begins with financial literacy, so we’re providing tools and tips for women, by women to take control of their money and help them live a richer life.
More From GOBankingRates