New city. New opportunities. New adventures. But also a nostalgic goodbye to the city you’re leaving behind. You might be thoroughly excited about the move or completely dreading it, but either way, there are a few things you need to take care of when shifting cities. Apart from the logistics that you need to take care of, you also need to be careful that you don’t leave any loose ends where your finances are concerned.
Keep the following in mind for a smoother financial transition to your next city of conquest.
Get the Important Documents Updated
Once you move to a new city, your important documents need to be updated with your new residential address. Make sure you update the following documents:
- PAN Card: You can update your address on the PAN Card manually or online.
- Driving License: You need to provide an application to change the address.
- Income Tax Records: It’s easy to miss this one. Update your bank account details and address details with the tax department. Although the IT department usually uses the address on your PAN card, it’s always a good idea to keep the tax records updated.
- Other Documents: Other documents to update are Aadhar Card, Passport, Voter ID, etc.
Get your Bank Account Transferred
The Reserve Bank of India has made the portability of your bank account much easier. Update the KYC (Know Your Customer) form and other required forms to shift your account to the local branch of the bank. You will require your local address proof for this. If you hold a joint account with someone else, however, all the holders will need the sign the form. Once you get your address updated, you will be issued a new cheque book.
If you are holding a Recurring Deposit and other Term Deposits, or any other type of investment account, then you should get that deposit/account transferred to the new city.
Get Your Investments and Insurances Transferred
It’s important that you remember to update your address for your investments and insurance policies. If you forget to do so, any correspondence will be sent to your previous address and you might miss out on important notifications.
Shifting Expense
This is something you need to factor in when managing your finances when moving cities. Hauling your stuff from one city to another is often a great hassle. You can always choose to do it on your own, especially if you don’t have too many things to transfer. Getting professional help, however, will greatly relieve you from the stress of shifting and you can spend the time saved wrapping up all the important things that you need to do before you leave the city.
A Few Tips to Manage New Expenses in a New City
If you’re relocating from one city to another, your household and lifestyle costs are going to change. Here’s what you can do to manage your expenses.
- Create and maintain a budget. Irrespective of whether your new city is more expensive or less, sticking to a budget will help you sort out your expenses and also keep your savings intact.
- Unless you have permanently shifted to a new city, renting would be better than a buying. Before you move, try getting an idea of the property rates in the new city, especially around your workplace. It’s not enough to find a house for a reasonable amount of rent, also enquire about how frequently the rent increases, the amount of advance payment required, etc.
Additional Reading: Should I Buy A House Or Continue Staying On Rent?
- If you have kids and are shifting in the middle of an academic year, getting admission in a good school might be tough. In that case, a good idea would be to let them complete their academic year in their current school and then shift at the start of the next academic year. Meanwhile, you can learn more about the schools in your new city and shortlist the ones which match your requirements.
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