There is little doubt that the pandemic reconfigured our traditional way of doing things, and in some cases redefined our priorities.
Work, school, parenthood, relationships, community activity, and finances were all re-calibrated as a result of Covid-19. The early impact was felt keenly in families, where residences were transformed into children’s classrooms and business offices.
One such transformation is the proliferation of remote working. There are numerous advantages to working from home. It may allow you to work from the comfort of your own home or even from a different city or country. It can also help you achieve a more harmonious work-life balance.
While the mental and health benefits of working from home are lauded, the financial benefits of working from home receive little attention.
7 Ways Remote Work Can Improve Your Finances
1. Eliminates transportation costs.
It’s no secret that the daily commute to work is time-consuming and exhausting. However, it also has implications for your finances.
Transportation expenditures can quickly build up if you work in a traditional office setting and don’t live close to your workplace. The most typical commuting costs are parking, gasoline, and public transit.
If you use your automobile to get to and from work, your car insurance premiums may also be higher. Working from home allows remote workers to avoid these additional fees.
2. Spend less on food.
If you work in a traditional office setting, it’s easy to be enticed to order takeaway or go out for expensive lunches with coworkers.
As an office worker, you might spend $15 a day, three days a week on eating out or buying takeout. In a regular month, that would amount to $180 in spending. You’d easily spend over $2,000 after a year of doing this!
Because your coworkers aren’t present to influence your behavior while you work from home, there’s less motivation to order meals or go out to eat. You’ll have access to a fully stocked refrigerator and pantry, as well as nutritious, budget-friendly snacks and dinners.
You’ll also have more time to prepare meals for lunches and snacks in advance because you won’t have to commute. You’ll spend less on impulse as a remote worker, and you’ll save money on weekday lunches.
3. Lower accommodation costs.
You are not bound by any office building or city as a remote worker.
You can live practically anyplace you desire because of this. Moving to one of the most cost-effective places is a smart idea if you want to save money. Living in a lower-cost locale means cheaper bills and more money to devote toward your financial objectives.
This could be especially beneficial for folks who live in a high-cost-of-living area and feel like they’ll never catch up.
4. Reduces child care costs.
According to a Care.com poll performed in 2019, more than 40% of respondents spend more than 15% of their income on daycare. As a result, many parents, particularly women, may be forced out of the job due to the high cost of daycare.
For some families, having one or more parents work from home might be a lifesaver. This allows one parent to be available for some childcare requirements while also earning a living. You might be able to eliminate some or all of your childcare fees as a remote worker.
5. Save on clothing expenses.
When you work from home, you might not need to spend as much money on clothing.
You may want to invest in a few outfits for online meetings and events, but you won’t need a professional wardrobe every day of the week. This might save you a lot of money. You’ll probably feel more relaxed during the day as well.
6. Potentially reduces health costs.
The stress that comes from the daily commute, eating junk food during break and lunch time, plus working in a toxic office environment can take a toll on your health in the long run.
This would imply that you may be visiting your physician more often and taking prescriptions to help you cope with the stress.
However, remote working enables you to sidestep the health implications of working from an office, which means you not only get to live a healthier life, but would also spend less on healthcare in the long run.
This is especially useful when you are older and retired, as this is the stage of life when medical costs would take a huge chunk from your living expenses.
7. Having a side hustle.
One of the unspoken benefits of working from home is that you can combine your regular work with a side hustle which can make more cash for you.
For example, while working you can also have an online store where you sell things online. Also, because remote work saves you time which is money you can channel the free two hours to something more productive such as creating video content or writing for your blog to raise extra cash.
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