7 Frugal Techniques for Your International Move That Will Save You Money
Moving overseas is no easy feat. There are all kinds of factors to consider, and they can all seem expensive and stressful.
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Fortunately, there are some cost-saving techniques you can take advantage of to make your international move as smooth as possible — without draining your bank account.
Opt For a Shipping Container
One effective cost-saving measure is opting for sea freight instead of air freight, according to Rhett Stubbendeck, CPCU, CEO and founder of Leverage Planning.
“For example, shipping a container by sea from New York to London might cost about $1,500, compared to over $8,000 by air. This choice alone can save thousands of dollars,” Stubbendeck said.
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Sell Your Bulky Items
“When I moved internationally, I also chose to sell most of my bulky items instead of shipping them,” Stubbendeck said.
“This not only halved my freight costs but also saved me from hefty import taxes on those items, which can be as much as 20% of their value,” he said. “It was a tough decision, but financially, it made a lot of sense.”
Meticulously Inventory What You Need
Another critical strategy involves meticulously inventorying what you really need to bring along, according to Dennis Shirshikov, finance professor and head of growth at Summer.
“Shipping costs are predominantly based on volume and weight, so every cubic foot you reduce can lead to substantial savings,” Shirshikov said. “For example, if the cost to ship a container internationally is around $5,000, reducing the volume of your shipment by 20% could save you $1,000.”
David Blain, founder and CEO of BlueSky Wealth Advisors, agreed.
“Regarding shipping belongings, I’ve seen clients save significantly by downsizing — opting to sell or donate items instead of paying steep international shipping fees,” Blain said. “For example, the cost to ship a 20-foot container overseas could range from $2,000 to $4,000 depending on the destination.”
“By reducing the number of shipments or the size of shipments, our clients have saved thousands of dollars,” Blain added.
He said this approach not only aids in financial savings but also simplifies the transition, making it less stressful and more cost-effective.
“If you choose to purchase essential items upon arrival, consider local prices versus shipping costs for a comprehensive cost analysis,” Blain said.
Move During the Off-Peak Season
Another tip, according to Stubbendeck, is to plan your move during the off-peak season.
“Freight companies often lower their rates by up to 30% during quieter months like late autumn or early winter,” he said.
He said this timing strategy is something he always suggests to clients looking to move without overstretching their budgets.
Shirshikov agrees with this approach. “Typically, moving services are in lower demand during the winter months, which can lead to reductions in service fees,” he said.
“For instance, moving costs during peak times can be as much as 20%-30% higher compared to the off-season,” Shirshikov added. “By scheduling your move for a less popular time, you could potentially save thousands, especially on long-distance relocations.”
Blain also noted that planning when you move is key.
“One of the most crucial cost-saving strategies is to meticulously plan your timeline for the move,” he said. “By scheduling your relocation during the off-peak season, which for most global destinations is from October to March, you can see an average cost reduction in moving services by up to 20%-30%.”
“Confirm this with international movers who can provide exact seasonal pricing differences,” Blain added.
Shop Around and Negotiate
“Don’t hesitate to shop around and negotiate,” Stubbendeck said. “Getting multiple quotes and comparing prices can lead to significant savings.”
“When I relocated, this approach helped me save an additional 15% off the standard moving costs,” he said.
Blain noted that understanding and negotiating terms with international moving companies can further reduce expenses.
“Obtaining multiple quotes and asking for specific inclusions such as packing services or storage can lead to better deals and avoid unexpected charges upon arrival,” he said. “Always seek clear details on insurance coverage for goods in transit to mitigate potential costs from damages or losses.”
Take Advantage of Tax Deductions
“I’ve guided numerous clients through the complexities of relocating internationally, focusing significantly on financial and tax considerations that most directly impact the costs and efficiencies of such moves,” Blain said.
Another powerful strategy he recommends involves tax deductions associated with the move.
“For U.S. citizens moving abroad, specifically for work, certain expenses like the cost of moving household goods and traveling to the new destination can be deductible if the move is closely related to the start of work,” Blain added.
He said this would effectively reduce gross income, lowering overall tax liability. “It’s imperative to speak with a tax advisor to ensure that each deduction is recorded properly, adhering to the current tax laws of your home and destination country.”
Keep a Detailed Checklist
Lastly, Blain recommended having a detailed checklist.
“That includes closing accounts, understanding rental lease terms in the destination and transitioning utilities [which] can prevent unforeseen charges that often incur when these elements are overlooked in the chaos of moving,” he said. “Our clients benefit from such organizational strategies, preserving resources which can be allocated more efficiently in their new home country.”
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