Should You Consider Relocating?
Martin Lukac represents www.RateEmpire.com and www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates.
Let's assume that the new position will get you an increase of $10,000 a year in salary. Your boss says that this will be a "good move" for your future. You have the weekend to decide.
Relocating is considered on of the most stressful events that can happen to a family. In fact, it is considered on of the toughest events on a marriage -- ranking right up there with having a baby and the empty nest syndrome. Changing jobs, which often happens when you are moving, is also a really stressful situation. You're probably already stressing before even deciding yes or no.
First of all, you can't put any math or business to your emotions. They are what they are. But realize that change is good. And that it is perfectly normal to look forward to something, yet be worried about it as well.
The financial aspect of it is easy to quantify.
You will probably be given a compensation package for the move. This will likely be a general package that takes no account of your personal situation. So you will need to look at it to see that it works for you. The after-tax cash flow of the relocation should at least be zero. You shouldn't lose money to do this.
The first thing to consider is the cost of living in the area you would be moving. Given that you will receive an increase in salary, chances are the cost of living is higher. Hopefully it isn't -- which means more dough in your pocket. But if it is, how much higher is it?
Will housing cost you the same? Can you upgrade or will you be forced to downgrade?
While you are looking at the area, perhaps you should do a quick bit of detective work. What is the area like? Is the crime rate high? Are the schools good? Are property and personal taxes higher or lower? Will your income taxes change? Will social security taxes change? Can your spouse find work in the area?
One way to do this detective work is to sit down with your spouse and write down all of the questions that pop into your head. Then get on the internet and try to find the answers. First thing Monday morning, you might make a phone call or two to area real estate brokers and even the chamber of commerce for more information.
Article Archives

