Five steps to take control of your finances as you prepare for relocation
1.Register with BGRS
As soon as you receive your posting message, ensure your BGRS account is active. It’s through the BGRS app you’ll track your move. This includes costing out your house hunting trip (HHT), knowing how you’ll be reimbursed for moving costs, and what’s covered – and what’s not – for you and your family. Check out the Guide to Relocating for detailed information on what to expect during your move, and download checklists to help you track each step.
2.Understand your eligible relocation costs
Every move is unique. Most moving costs are covered, but there are monetary and time limits on reimbursements. Get clear on what you can and cannot claim. Remember to keep all receipts for your move, starting now. It’s recommended you designate a tabbed folder to save every proof of purchase as you go. Remember, BGRS now provides much of your reimbursement up front as a lump sum. Whatever you don’t spend – or cannot prove you’ve spent with eligible receipts– you’ll have to pay back.
3. Compare current and future income
Get a sense of how much money will come into your house each month at your new location. Look at variations in provincial income tax deductions as part of this exercise, which affects your net pay. Examine any benefits you receive where you currently live – for example, childcare subsidies, caregiver or child tax benefits -- and determine if you’ll receive comparable benefits when you move. Consider whether your spouse will work after your move. Will there be a period that you’ll rely on a single income? Do you need to apply for employment insurance? Are salaries for your partner’s work equivalent in your new location? Is remote work a possibility?
4. Compare cost of living
Determine how much you’ll pay for necessary expenses at your new location. If you plan to buy a house, is the real estate market similar to where you live now? If you’re renting, what can you expect to pay at your new location? Try to compare household bills, like hydro, natural gas and internet fees, which vary by province, and even by municipality. Look at the prices fuel and transit to understand how your daily commute might be affected. Compare grocery flyers between your current and new location, and accessibility of stores. This will give you a general idea of the difference in cost for items you buy frequently.
Don’t forget to look for hidden costs. If you have a family member helping as a caregiver where you live now, will you have to pay for that service when you move?
5. Book an appointment with a SISIP specialist
Every CAF member is eligible to receive free financial advice. SISIP specialists can guide the financial side of your move.
- Help to understand the costs associated with your move
- Assist you with comparisons of current and future income and expenses
- Develop a budget that works for your individual circumstances
- Discover ways you can pay down debt faster and save for the future
- Update your life insurance policies to ensure they keep pace with your lifestyle
Benefit from confidential advice from financial specialists who are part of the military community and understand how relocation works.
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by SISIP Financial, for the benefit of SISIP Financial, Investment Funds Advisor, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
