Job relocation? Here's how to move cities without wrecking finances

A higher salary might not always lead to a bigger bank account if you are unprepared for relocation realities

- Anagh Pal

When Jeffrey E., 25, moved from Tiruppur in Tamil Nadu to Gurugram in Haryana fora new job ata fintech company, he was earning.a good salary and did not worry much about a likely increase in his expenses.

However, he soon found himself spending more than he needed to, largely due to convenience.

“While my expenses are still well under control, I have not been able to give enough attention to building up my savings,” he said.

Moving to anew city for work can bea game-changer for your career, but it also comes with new financial challenges. A higher salary might not always lead to a bigger bank account ifyou are not prepared for the realities of the relocation.

Here’s a guide to help you navigate the financial journey of a big career move.

Relocation toa bigger city often involves more than just higher rent and bills. You have to consider a new city's culture and commute, which can significantly impact your finances and well-being.

“In bigger cities, expenses tend to rise in proportion to income, so savings don’t increase as much as one would expect,” said Vivek Banka, founder, GoalTeller, a financial planning firm.

And ifyou’re moving froma city where you live with your parents to ametro suchas Bengaluru or Mumbai, your rent burden will be substantial and other lifestyle expenses are likely to increase. The salary hike should be enough to cover these costs. But if you end up saving less, the move might not make sense froma financial perspective.