Where to Save on Remote Work Expenses
One of the biggest savings opportunities with remote work expenses is housing. As the world becomes more comfortable with working remotely, it has become clear that the daily 1 hour commute is no longer necessary. Many individuals have taken this opportunity to move out of the city to the suburbs where they can have bigger homes for lower costs.
Another savings opportunity is commuting. Taking into consideration gas, insurance, and auto payments, commuting consumes almost 15% of your annual income in many big cities. Taking advantage of this cost saving opportunity can provide you with additional income to allocate elsewhere, such as your retirement fund. Other miscellaneous cost savings include daily coffee and lunch purchases, as well as the amount spent on clothing to look presentable in the office.
Working from home provides an opportunity to save money by making your daily coffee and lunch from scratch and reusing some of your office outfits instead of purchasing new ones. Weekly grocery trips and meal planning can help you save money on food and stay healthy during this time.
Navigating Additional Remote Work Expenses
Although you may be saving money in several areas such as your commute and daily lunches, you may also incur additional costs in other areas of your life. Firstly, utility bills will likely increase with the increased use of lights, air conditioning, and heating. Internet bills may also rise as you may have to invest in higher internet speeds to support your work, which may or may not be subsidized by your employer.
Another cost to consider are technology purchases, such as software, laptops, printers, and phones. Although many companies will subsidize these purchases, 67% of employers still require employees to bring their own device to work. Therefore, it may not be a priority for all employers to provide free electronics that would otherwise be available in the office.
Working from home also poses challenges in finding a suitable work space. At the office, there are normally ergonomic office chairs, suitable desk spaces, and other facilities that not everyone has access to at home. Some individuals may need to book a coworking space at their expense in order to find an appropriate work environment. Others may have to purchase a desk or new office chair to maximize productivity for remote work.
Remote Work Expenses and Navigating Lifestyle Changes
When adjusting to the remote work lifestyle, start by assessing your budget and making some changes to account for the additional expenses and savings you expect to incur. After subsidizing as many business expenses as possible, transfer money in your budget from where you are saving to your new expenses. Allocate any leftover funds towards savings or investment activities to increase your future financial stability.
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