Moving cities or countries? Here’s how to keep your finances on track

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Relocating—whether it’s for a job, family, or lifestyle—comes with more than just packing boxes and booking movers. The bigger challenge often lies in managing your money without getting caught off guard. From rent deposits to shifting bank accounts, a lot can slip through the cracks if you don’t plan ahead. But with a little foresight, you can make the move without burning a hole in your wallet.

Budget for hidden expenses

The first shock most people get while relocating is how many little costs pile up. Security deposits, brokerage fees, advance rent, shifting charges, new furniture—it all adds up. If you’re moving cities, even temporary expenses like staying in a hotel or eating out can strain your budget. The best way to handle this is to create a relocation budget that goes beyond just packers-and-movers. Add a buffer of at least 10–15% for unexpected costs.

Manage loans and EMIs

If you have ongoing EMIs—whether on home loans, car loans, or credit cards—make sure you set up auto-debit or UPI mandates well in advance. A missed payment during the chaos of relocation can hurt your credit score unnecessarily. If you’re moving abroad, consider whether you want to continue your Indian credit cards and loans or close them before you leave.

Revisit insurance policies

Relocation often means new risks. If you’re moving within India, check whether your health insurance covers hospitals in your new city. For overseas moves, you’ll likely need an international or local health insurance plan. Also, update your address with insurers so your communication and claims don’t get lost.

Sort out your banking needs

Changing cities? Shift your bank branch or consider opening an account with a bank that has a strong presence in your new location. Moving abroad? Inform your bank of your new NRI status and convert accounts if required. Not doing this in time can complicate fund transfers and compliance.

Keep investments liquid

In the months leading up to relocation, avoid locking up too much money in illiquid instruments like FDs with long tenures or real estate. You might need quick cash for deposits, emergencies, or settling in. Having a healthy balance in savings and short-term mutual funds can provide breathing room.

Bottom line

Relocation is one of those life events that tests both your patience and your finances. But if you budget smartly, stay on top of EMIs and insurance, and keep liquidity handy, you’ll make the transition smoother. The goal is to settle in your new home without feeling like your bank balance took a bigger journey than you did.

FAQs

1. Should I break my fixed deposits before relocating?

Not always. But if you anticipate large cash outflows, consider liquidating or keeping funds in short-term instruments so you’re not forced to break FDs mid-way.

2. Do I need to change my PAN or Aadhaar details when I move cities?

No, but you should update your address in Aadhaar and with your bank, mutual funds, and insurance providers to avoid future hassles.

3. How do NRIs handle EMIs if they relocate abroad?

NRIs can continue paying EMIs from their NRO accounts. It’s best to set up standing instructions so payments continue seamlessly.