What Factors Should You Consider When Planning a Move for Financial Freedom?

Are you considering moving to a new state, city, or country for financial reasons? Accurately weighing the pros and cons of your move ahead of time can go a long way in helping you make the best decisions.

We've compiled some noteworthy factors to keep in mind when planning in this guide. No matter if you're relocating for the short or long term, you want to know how the decision could impact your career, finances, and everyday life.

Career Considerations

You may be considering staying with your present employer or taking a risk and accepting a new position elsewhere on your own. As intriguing as it seems, there is no denying the need to thoroughly research your future place.

You want to check out how relocating could impact your career over the short or long term. For instance, what benefits are covered differently in the new area compared to your present location? You want your most crucial routine and healthcare costs duly catered to or prepared for.

Is your company sponsoring the move? Or are you set to sponsor the entire move, knowing that it could amount to thousands of dollars, depending on some factors? How does the new location or role provide novel opportunities to upskill or progress within the niche?

Is your new position allowing for flexible working hours? These may be useful if you have children or wish to balance work and other interests.

‘Smart moves aren’t just about chasing higher income — they’re about finding the perfect mix of opportunity, stability, and quality of life.’ — Marie Toland, Slotozilla.

Family Life

There are several factors to take into account if you have a family or want to build one in your new area. If you already have children, you want to make sure that the transfer does not have a severe negative impact on your spouse and children.

Other family-based questions to ask include:

• What work opportunities will be available in your new location?
• Will your partner and kids be able to smoothly progress their careers and lives, or will moving draw them back?
• Are there opportunities to meet new people and make new friends in the region?
• Where applicable, how much does childcare cost?
• How will housing prices impact your living arrangements?

Answers to questions like this can help you and your partner check if you're on the same page on crucial issues as you conclude on the best relocation decision to make. Moreover, your children's ages will also prove crucial in helping you make the perfect pick.

Younger kids adapt faster and make friends more easily. On the other hand, kids nearing high school completion might have to grapple with abrupt environmental changes while preparing for tertiary education. You want to ensure they don't start dropping in grades or get frustrated with the new environment.

Is your family already very happy and settled in the current location? Deeply consider if the move won't significantly alter the bright smiles and beams in the home, or scheme other incentives to make adaptation easier.

Finances

You're moving for financial freedom. That's why you need to observe little but important details about the new move. Top financial considerations to consider if you're relocating to up your financial status include:

• Living expenses
• Child care costs
• Potential impact on routine savings
• Potential impact on retirement savings

Living Expenses

Regardless of the compensations promised or expected income raise, they may amount to way less if things are just more expensive in your new location. For instance, if a family that has been living in suburban Iowa suddenly moves to some of the most expensive states to live in the US, the living price tag will probably skyrocket. It might help to carefully research the living expenses in the new area to see how far your expected take-home would go.

Childcare Costs

Childcare costs are a major consideration if you have kids or are expecting them. A move may potentially increase your childcare expenditure or boost your savings. Begin researching various options, particularly if the relocation involves changing your current caregivers.

Routine Savings

Also consider how your new or anticipated income (and expenses) will impact your saving ability. Do you think you can meet up with routine options like emergency fund savings accounts, or a tax-free savings account, after the move?

Also, what would you do if things suddenly don't work out? Creating a financial security blanket can help you while you prepare for your next move.

Retirement Savings

It also helps to consider how the new move could impact your retirement savings habit. If you're nearing retirement, consider whether your new opportunity or role includes matching benefits or plans that can bolster your retirement savings goals.

Physical and Mental Health

The entire process of weighing between two options can be stressful in itself. Even more, you want to assess how a move could impact your (and your family's) physical and mental health. Here's how to check whether a move looks safe for your physical and mental health.

Mental Health

The prospects of relocating to an entirely new location can be exciting, especially for young professionals. However, the actual process of moving can be stressful in itself. So, it can help to put a plan for managing stress or anxiety. For instance, scheduling gym memberships or routine exercises can help you better cope with mental health issues related to physical relocations.

Physical Health

Stress can also directly affect your physical health. So you want to remain significantly active to ward off potential health issues like digestive or immune system dysfunction. Physical activities like hiking, yoga, or cycling can be excellent ways to exercise and meet new people in your new location.

If you're moving to a more rural place with overwhelmed local services, check for provisions of a virtual healthcare plan (either from your employer or budget). Spending on personal healthcare can be more affordable than spending large sums on emergency healthcare.

Your Back-Up Plan?

Lastly, what happens if you don't make the move? Perhaps your kids or partner doesn't want it, or your immigration plans failed against your expectations? What if the new job or role turned out to be a bad fit, and the move felt like a scam?

It's vital to plan your way out ahead of possible eventualities. Think up a back-up plan to help you and your family keep growing financially and otherwise, regardless of the outcome of the relocation plan.

Conclusion

Choosing whether to move or stay is ultimately a personal choice and differs based on the events surrounding each person or family. Where possible, ask around about people who have made a similar move and see if they could help with handy advice.

Ultimately, taking time to fully weigh the merits and demerits of a move and how it could directly or indirectly impact your financial freedom goals can narrow down your options and aid you in making the right call.