Benefits Of Remote Work
D. S. Mitchell
The vision of going to work has changed for many of us during the COVID-19 pandemic. Working from home may continue for many workers as we move out of the pandemic and back to normalcy. A Harvard Business School study reported that more than one third of the companies surveyed believed that post-pandemic work environment will include an increase in remote work.
The shift to at-home work can have long term positive financial advantages. Such possible benefits could include such things as:
- Reduced transportation costs. Over even a short time you can spend a lot of money commuting back and forth to the work place. The average commuter typically spends $2,000 to $5,000 annually. This includes gas, car maintenance, public transportation costs and other related costs according to the U.S. Census Bureau.
- Lower insurance premiums. Auto insurance premiums are partially based on miles driven. If you no longer travel from home to work and back again you should potentially save money.
- Lower lunch costs. Eating at restaurants, or visiting coffee shops while at work can add up fast. It is easy to imagine saving $50 to $100 per week by working from home.
- Lower clothing costs. I’m not suggesting you work in your skivvies but there are definitely ways to relax your wardrobe when working from home. Not to mention reducing laundry and dry cleaning expenses.
- Lower child care costs. Child care costs can be high. Working from home should reduce those expenses dramatically.
- Increased time. Working from home can save hours of time spent on the bus, train, subway or in your car. Spend it recklessly or wisely it’s your choice, but working from home should give you more of it.
It is not hard to imagine saving as much as $5,000 each year by working from home. If this new phenomenon becomes the norm you should think about saving or investing this potential windfall. Edward Jones suggests two possibilities to make the most of this extra money. One, build an emergency fund containing at least one year of emergency cash. Two, an IRA or a similar employer-sponsored plan could provide an approximate $97,000 ($2,500) to $200,000 ($5,000) after 20 years at 6% interest.