If you’re considering a move to Utah, there are a few financial factors to keep in mind. From the cost of living to job opportunities, Utah can be a great place to live and work.
First, however, it’s essential to research and ensure you’re ready for the transition. Then, you can set yourself up for success in your new home state with a bit of planning.
How to be financially ready before the big move to Utah
Here are five steps to successfully relocate to Utah from a financial perspective.
1. Understand your current financial situation
Before any successful journey, you must understand where you are today.
And while assessing your current financial situation can feel daunting, several steps can help make the process easier:
First – Analyze your cash flow
Cash flow is the net amount of cash and cash equivalents that moves in and out of your financial accounts. You can get an idea of your current cash flow or how money flows into and out of your household prior to moving by looking at your income and expenses for the last six months.
Second – Examine your assets and liabilities
Simply put, your assets are everything you own, and liabilities are everything you owe. Listing them down will help you form a picture of your financial situation. Assets include investment accounts, bank accounts, the value of your home, any rental properties, your cars, and more. Liabilities include mortgages, car loans, personal loans, credit cards, and more.
Third – Calculate your net worth
Your net worth is the value you get when you subtract your liabilities from your total assets. This will give you a dollar value of the current net worth of your household and can be a valuable metric as you evaluate your upcoming move.
Once you understand your current financial situation, you can plan a successful and stress-free move.
2. Research Utah’s different areas to see which is the best fit for you
After you understand your current financial situation, it’s time to do your research.
Utah has many unique areas to choose from when deciding where to settle. From the mountains and lakes of Northern Utah to the stunning red rocks and desert climate of Southern Utah, every area has something unique to offer. Your decision should be based on what best fits your needs, wants, and financial situation.
Researching the cost of living should give you an idea of what a particular area of Utah is like and its level of affordability.
The cost of living in Utah is generally lower than the national average, but prices vary across different cities and towns. Rent can be more affordable than in other parts of the country, but groceries and entertainment expenses stay consistent with the rest of the USA.
It’s also important to factor things like property and income taxes into your budget when evaluating your move. Overall, Utah offers great value when compared to other states.
In addition, consider researching the average salaries for different industries in Utah and the proximity to other services such as hospitals or shopping centers. By thoroughly investigating all potential options before deciding, you can better understand each area’s cost of living and amenities, which will help you narrow in on the right location.
3. Make a budget for what you want and need in Utah
Once you’ve narrowed down a few possible locations, you can pencil out a budget.
Fortunately, Utah is an amazing state that offers much to people of all ages and budgets. Everything from living near stunning national parks or incredible ski slopes, Utah has something for everybody.
When creating a budget for your move to Utah, you’ll want to consider your needs and wants.
If you’re moving with your spouse or family, consider sitting down together to discuss what’s essential for your move and what you want but won’t be a dealbreaker. List everything from the size and type of house you like and the ideal neighborhood to your ideal distance to outdoor recreation. Discuss this with your family wealth advisor to get the most out of your money.
If you want to buy a home, write down a price that fits your financial plan. Alternatively, if you’re interested in renting, figure out how much you’re willing to pay each month. By clarifying what you want and need and the numbers, you’ll filter the locations and homes that may fit your situation well.
4. Consider your job prospects in Utah
Utah can be an amazing place to find work, with an incredibly low unemployment rate of 2.2% in December 2022, well below the national average of 3.5%.
With a population of around 3.3 million people and major industries such as finance, technology, fabrication, and engineering, Utah offers a wide variety of employment opportunities in both rural and urban areas. Additionally, many large employers have chosen to open offices in Utah, including global corporations like Adobe and Domo.
If you plan to continue working remotely for your current employer, understand whether moving to Utah will affect your compensation. Some employers can scale their compensation up or down based on the cost of living in the area. If Utah is a decrease in the cost of living for you, that could result in a pay cut.
Be sure to discuss this with your employer before making your move to understand how it could impact your income.
5. Make a plan to save up for your move to Utah
After you’ve decided on a location, built a budget, and researched potential jobs, it’s time to plan and start saving before the big move to Utah.
Moving to a new state can be quite costly and stressful, so creating a plan of action is important. Saving up for your move to Utah should be done according to your budget and needs. As part of a successful savings plan, it can be helpful to start by determining how much money you’ll need to save overall and breaking that figure down into monthly goals.
Consider every expense associated with the move, including rent, mortgage costs, deposits, down payments, transportation fees, and moving costs. After calculating all expenses, assess your financial situation and develop a timeline for moving. Concrete goals and timelines will structure the process to help you feel less overwhelmed with tackling such an immense task.
If you’re looking for more savings opportunities, start small by creating manageable goals like cutting down on eating out or monthly entertainment bills.
Ultimately, moving to Utah can be a great financial decision, but you must take the time to do your research and plan accordingly. Following the tips in this blog post, you’ll be on the right track to understanding your current situation, identifying what’s important to you, creating a solid budget, finding an area you love and can afford, and securing gainful employment in Utah.
And if you want to ensure that your finances are in good hands, consider working with a professional wealth coach.
Tencap Wealth Coaching is here to help
If you’re interested in working with a financial planning professional to ensure your financial success, then Tencap Wealth Coaching is here to help.
At Tencap Wealth Coaching, we’re focused on helping you achieve your financial goals and more through academically sound financial planning. From investment management to retirement planning and tax strategies, we are here to manage the complexities of your money and allow you to relax and enjoy life. Learn more or schedule an introductory meeting below.
Nick trains and develops families in creating, maintaining, and growing wealth. This includes educating clients on the science and academics of investing, comprehensive financial planning, and ongoing coaching to ensure discipline for a lifetime. Nick has seen this create incredible levels of freedom, fulfillment, and love for the families he works with.