A View From the Road: When the Economy Starts Moving Again, You Won’t Want to Be Left Behind

September 19, 2011

I am not entirely surprised with the news that no new jobs were created in August, if my view from the road this past week was a microcosm of the rest of the country. Over the past week, I moved from Northern California to just north of Salt Lake City, Utah. My husband and I plan to retire here. We figured, why wait, and put in to be transferred to the Mountain states. We rented out our home in California, packed up and moved to our condo.

I say the view from the road because we moved ourselves, so I literally was on the road following our rental truck that my husband drove. As you may know from experience, there is a lot to be observed when you have your feet (and ear) to the ground. Driving the 12 hours to Utah was much different than if we’d hired movers and hopped on a plane. What I observed (other than seeing my husband almost get smoked several times by overly aggressive truck drivers) was, we are an anomaly. People aren’t moving. We saw one other Penske rental truck in Reno and a couple of small Budget rentals, but we saw NO full service moving trucks the whole drive.

When people move, it is generally a sign of hope for the future, and becomes a self fulfilling prophesy because moving stimulates the economy. The sign of hope is two-fold – for companies hiring new employees, or transferring or promoting current employees which causes relocation. Companies taking on this commitment show they are positive about the future, and are willing to invest in their business. New employees making the move are doing the same, and are making new commitments to their employers, their families and their future.

It takes a commitment since moving is expensive! We decided to do it ourselves with some help from our friends and families, as well as this wonderful service called, “Simple Movers™,” that contract with Penske. Here are some of the ways we helped to stimulate economies in three states: California: moving from, Nevada: driving through and stopping in, and Utah: moving to.

Expenses we incurred when moving:

Hauling
Steam cleaning carpets and housecleaning
Property manager – since we aren’t there, the expense is well worth it!
Truck rental
Simple Movers™ to load truck
Supplies – boxes, tape, dolly, touch up paint, etc.
Hotel at home – can’t sleep in an empty house
Restaurant – can’t cook at home when it’s packed up
Gas – diesel for truck, unleaded for me
Hotel on road
Restaurant on road – stayed at a Casino in Elko, Nevada, we ate there but were too exhausted to gamble, so we either saved money or didn’t win big. I guess it depends on how you look at it.
Sunflower seeds, cokes and candy bars for the drive
Storage locker
New stove and microwave
Cable TV
Phone
Vehicle registration
Driver’s license fees
New physician initial visit
Dog registration (most important thing on the list)
New light fixtures (upgrade)
Ceiling fan
Mountain bikes (second most important item on list, we bought them used at an end of season rental bike sale)

The list would even be longer when you buy a new place. Here are additional things:

Real estate agent times two – buyer and seller
Lender
Title company
New carpet
New appliances
Window coverings
Cement poured for new patio
Patio furniture
Handy man services
The list goes on and on…

When the economy does turn around and jobs are added, the trickle down will be amazing. New jobs create new opportunities for workers in so many industries. When people are optimistic, they make purchases they have been delaying, such as a home remodel or a new vehicle. Our economy is obviously still sluggish and we don’t know when things will turn around. But my view from the road reminded me to keep investing. Now is a great time to build up shares in equities like the 401(k), Roth IRA or simply in an investment account. When the economy does turn around, the market shifts from the bear to the bull and people are on the move again, the growth will be amazing.