7 Financial Considerations Before Moving to Boise, Idaho

So that’s the plan! Moving to Boise, Idaho from California is probably one of the most important 772 mile trip you’ll make in your life.

The capital of Idaho and the county seat of Ada County, Boise lies along the banks of the 102-mile long Boise River that rises in the picturesque Sawtooth Range in in the southwest of the state. The mountains offer protection against the harsh winter blizzards that could blow in from Canada.

This middle-sized city is currently having its moment in the limelight. The population growth between 2010-2018 was up  by more than 18% and the city featured in Forbes magazine as the 4^th fastest growing city in the US.

Boise was chosen as the best place for millennials to live in, as well as the best location to purchase a home in.

Surveys show that Californians form the largest number of out-of-state newcomers in Boise, while others come from Washington and Utah. Well educated, professionally qualified young people under 40 form the bulk of those moving into Boise. They prefer to leave more expensive, and unsafe places to choose this city that has much to offer.

What brings people to Boise is the mild climate, the exciting job opportunities, cleaner and less crowded spaces, friendly atmosphere, rich art scene, amazing leisure, sports and entertainment scene. Most importantly, the comfortable and safe quality of life, affordable cost of living, good educational and health facilities and good housing in great neighborhoods.

As fears of the current pandemic begin to slowly recede following the advent of vaccinations, people are making plans for their future in smaller, less urbanized locations.

The city has a widely diversified industrial scene. Besides the traditional agricultural industry, it now encompasses electronics, lumber, wholesale trade, trucking, lumber and technology. One of the biggest employers in Boise is the federal government.

Making A Move: What You Should Consider

People who move across to a different state have to keep several important points in mind.

Finance and taxation are state or federally regulated subjects so there may be differences in each state. Federal, state and local taxation may differ. They may be imposed on income, property, salary, capital gain, imports, etc.

California state taxation is much higher than Idaho. The sales tax in California is between 7.5-10% while Idaho’s is only 6%. In California, Hawaii, New Jersey, Minnesota and Oregon, your income taxes are also higher where it could be between 13-9% based on income. Idaho has income tax rates of between 1.125-6.9%

California has higher taxation on property, gasoline and cigarettes.

Home prices in California hit $600,000 recently, while those in Idaho are at $300,000.

If you own municipal bonds in California, it’s important to check whether income from these is tax exempt in your new location.

Financial Aspects To Organize Before You Move

1. Organize your financial documents: Go through all your important financial documents when you begin planning your move. These documents include banking documents, insurance documents (get hard copies of life, accident, vehicle insurance policies), investment documents including those related to property, mortgage and payment records, equity, mutual funds, bank deposits, and your will. If you have bank lockers or have given/taken loans from friends and family, keep a record of these. Ensure you have hard copies of medical insurance policies and personal identity/address proof.
2. Validity: Organize documents in neat folders and ensure that they’re up to date. Arrange them date-wise, starting with the most recent on top. If you have to renew policies or give instructions to your bank, keep a reminder of the due dates so that you don’t forget to do this in the midst of moving.
3. Tracking: Begin tracking regular and recurrent payments so that the dates are not missed and you have to end up paying fines and penalty. Clear any unpaid bills and ensure that you keep a track of any installment payments that you have to make on furniture, appliances etc.
4. Make a new budget: Cost of living is much lower in Boise, Idaho. If you’re moving from California, you will get the immediate benefit of a lower cost of living in the new city. However, it is important that you make a new budget that reflects this. This helps you plan your savings better. Keep a tidy sum aside to cover the costs of moving and settling into your new location.
5. New/Old relationships: If you’ve moved to Boise following the establishment of a new relationship, ensure that your financial goals are in order in the new configuration. You may have to restructure your budget, incur new expenses and also change your spending and saving habits. Similarly, if you have recently dissolved an existing relationship just before the move, ensure that all financial matters are in order before you move. Death, divorce, marriage, live-in relationships, birth of children, child support payments and care for seniors or persons with disability have to be factored into the financial map when you move.
6. Tax Returns: Make sure that you organize your taxation papers, records and receipts correctly and keep them updated before you begin the moving process. Finance records such as pay-stubs, canceled checks, disability/pension plans, retirement plans must be carefully organized. Experts recommend that you preserve your tax statements for 7 years before shredding them. This can help you when you plan to purchase a new house because it helps you to establish that you’ve been a responsible citizen.
7. Calculating Educational Expenses: Idaho has a college education rate of nearly 85% and there are a number of excellent schools. You may have to decide whether you want your children to study in private schools or enter the public school system. Education is one of the largest budgetary items for a family. It also influences the area that you choose to live in, the prevailing property rates and mortgage payments to be made. This means that your educational goals for your children could also impact other expenses for your daily living.