In mid-October, my girlfriend and I made the decision to move from Boulder, Colorado, to Bend, Oregon. Many months, if not years, of thought and consideration went into the decision. As a CERTIFIED FINANCIAL PLANNER™ who deals with finances every day, I wanted to share the steps I took in planning for this significant life change. In this post, I’ll walk you through my firsthand experience of making a 1,500-mile move across the country. I’ll also highlight the key financial considerations that guided my process.

1. Prioritize the emergency and future opportunities fund (EFOF).

Before diving into the logistics and feasibility of the move, my first step was to make sure I built up my emergency and future opportunities fund (EFOF). While I would recommend that an individual maintain closer to six months’ worth of expenses in their EFOF and that three months’ worth is acceptable for a couple, my move was coming up. 

So even though my girlfriend and I were planning the move together, I aimed to have at least six months’ worth of living expenses in cash, easily accessible. This gave me peace of mind. For one, I could use my EFOF to cover the cost of the move. Plus, I knew I’d be prepared for any unexpected situations — whether that meant car troubles on the road or delays in settling into my new home. 

With this safety net in place, I felt confident that I could handle the typical challenges that come with a move.

2. Evaluate cost-of-living differences and cash-flow plan modifications. 

Once I checked the box of establishing my EFOF, I turned my attention to the nitty gritty finances of the move, starting with the cost of living. I compared everyday expenses in Bend to what I was used to in Boulder. From average housing costs and groceries to dining out, utilities, and — most importantly — the cost of my snowboard pass to the local mountain, Mt. Bachelor, I looked at it all. To get a clearer picture, I reached out to friends and family in the Bend area for insight and reviewed publicly available data on the average cost of common goods. Resources such as this online database gave me a sense of what to expect in terms of differences in everyday expenses. 

I also considered how my expenses might change. In Colorado, weekend getaways to snowboard in resort towns with friends were a regular part of my routine to avoid the notorious I-70 traffic on Saturday mornings. Since my new mountain commute was only 30 minutes each way, I knew I wouldn’t need to take as many weekend trips. This allowed me to decrease my budget for short weekend travel since I wouldn’t have to pay for overnights at lodges. 

The question friends and family asked most often when sharing the news of my move was whether I planned to buy or rent: a classic debate. Given our uncertainty about staying in Bend long-term, my girlfriend and I decided to rent for the time being. There’s a chance we may not stay in Oregon long enough to make the cost and hassle of buying worth it. If we weren’t considering a potential move back East, where we both grew up, at some point the option to buy would have been far more appealing.

The exercise of going through my cash-flow plan helped me make adjustments where necessary and ensure I was still prioritizing saving — all while not forgetting to have fun along the way.

3. Understand the tax implications of moving to another state.

Next, I compared Oregon’s tax structure to Colorado’s. I found that Oregon has a progressive income tax rate ranging from 4.75% to 9.9%. Colorado, on the other hand, has a flat income tax rate of 4.4%. Although Oregon’s income tax rates were higher, I also discovered that Oregon doesn’t have a sales tax, unlike Colorado’s 2.9%. This meant I could offset some of the additional income tax burden through savings on consumption taxes.

When evaluating the tax implications of moving to another state, it’s important to consider not only income tax and sales tax, but also other factors such as property, estate, and any local taxes that might apply. For example, some states may offer property tax exemptions or may impose inheritance taxes, while others do not. It’s important to consult with a tax professional to understand how your move could impact your filing status, deductions, and potential changes in your overall tax strategy.

4. Assess insurance costs.

I also reviewed insurance costs for both my car and the new home I’d be renting. Fortunately, I found that my car insurance would decrease, thanks to Bend’s lower population density and the reduced mileage I’d be driving. Instead of the 180-mile roundtrip I was used to in Colorado, I would only be driving about 25 miles to the mountain each way for snowboarding on weekends. While updating my auto insurance and address, I also took the opportunity to shop around and compare quotes. I was able to switch to a new insurer, saving nearly 50% on my premiums! 

One downside was that my renters insurance costs would be slightly higher due to the increased wildfire risk in the area. Overall, this analysis helped me anticipate my new financial obligations and, ultimately, save a significant amount on insurance.

5. Consider moving costs wisely.

The cost of moving across the country typically ranges from $1,000 to $5,000, depending on factors like distance, the number of items being moved, and the type of service you choose. By opting for a more DIY approach, I anticipated we would fall on the lower end of that range. Using online calculators, like this one, can provide a helpful estimate to give you an idea of what to expect.

When it came to the physical move, my girlfriend and I had to weigh the costs of renting a U-Haul van, using a moving pod, or moving only the necessities. We realized that we didn’t own much that we truly cared about taking with us. That provided a good opportunity to update some of the older items we had. We decided to sell items like our mattress, dressers, and furniture. Then, we set aside the proceeds from selling the items as a budget for new purchases after the move.

6. Reflect on non-financial goals.

Finally, I considered my long-term, non-financial goals. Moving to Bend was about more than just finances. It was about being closer to family, particularly my older sister and her husband. While we loved all that Colorado had to offer, my girlfriend and I were also eager to explore a new environment and create memories after five years of living in Colorado.

Sure, I focused heavily on the financial implications of my move. But at the same time, I realized that the non-financial aspects were equally — if not more — important. Not every decision in life has to be financially driven. As someone who deals with personal finances each day, I constantly need to remind myself of that. 

Looking back, I certainly realize that moving can be a complex process. It was so much more than a cost-of-living comparison exercise, and I found it essential to look beyond the numbers. By planning ahead and considering both financial and personal factors, making a well-rounded decision that aligned with my goals became a lot easier.

If you’re looking to make a move, reach out! Our team here at FPFoCo specializes in working with clients like you through life transitions. From planning a relocation to settling in and adjusting to the changes that a move can bring, we’ll be here for you throughout the journey.