Think about how working from home affects your finances and you’re likely to come up with a number of ways you’ve saved money. Have you considered how it may be costing you money in the long run? It’s not always free to work from home, no matter how much you’d want to believe.
Some of us may have found it pleasant at first when the COVID-19 crisis shut down companies throughout the nation and millions of employees were forced to work from home. There’s no commuting involved. Savings on petrol and vehicle expenditures are enormous. Wearing your jammies to work.
When it comes to your wallet and your mental health, there are charges that you may have overlooked. A few costs to keep in mind if you’ve just started working remotely, whether for a short period of time or for the long term. It’s been a while since you’ve spoken about money.
A change in financial circumstances? Foran Financial Group’s financial experts can help you. You can count on us.
Office Supplies and Technology
Back in March and April, you could have gotten away with setting up your laptop and a few folders on the dining room table or a corner of your couch while working from home for a few weeks. However, if working from home is becoming a more permanent solution (and you’ve taken over the entire dining room table), it may be time to consider setting up a more formal office space for your business.
It is likely that you will be responsible for furnishing your home office unless you are able to obtain office materials from your workplace: It’s a large list, but it includes everything from a desk and chair to lighting and office supplies. Consider purchasing software licenses or upgrading your computer equipment if necessary.
Utilities, Internet, and Cell Phones
The bandwidth of your high-speed Internet connection, your phone service, and any other services you pay for will almost surely be used if you work from home. You may see an increase in your utility costs as a result of greater consumption. It’s possible that you’ll need to improve or increase your Internet service, for example, if you have children who will be continuing their distance education in the autumn.
Rather than relying on take-out or dining out every day, you may save money by eating at home for lunch and avoiding your morning Starbucks habit. When it comes to consumables like bottled water, dish soap, toilet paper, and paper towels you may discover that you are paying more. Cleaning services, the water cooler, and sponsored lunches are all things you can’t take advantage of when working from home.
A working parent knows how difficult it may be to find a decent work-home balance. As summer approaches, you may find yourself juggling both working and raising a family full-time now that school has let out, daycares and camps are closed, and kid activities have yet to resume.
Some families have hired nannies or paid babysitters to take care of their children for a few hours so that they may answer phone calls or work on a project. Even while these expenses may seem modest on a daily basis, they may mount up rapidly, particularly in schools and daycares are closed in the autumn and you continue to work from home.
Every new mom should be aware of these five financial preparation suggestions.
Before the outbreak of the Coronavirus pandemic, it was estimated that each person working from home earned an average of $10,000 per year, most of which would have gone toward the cost of their house. Now that companies are requesting that their staff work from home, the burden of these expenditures falls on the workers themselves.
Even if you’re still paying the same amount of money in rent or mortgage, you may have to give up part of your own living space. Have you removed the playroom? It seems like you were forced to set up business in a guest room Can’t you go to the family room or your bedroom when your partner is “at work” between the hours of eight in the morning and five in the afternoon?
Exercising one’s body
Working from home means no commuting to and from the parking lot, no climbing the stairs, and no lunchtime workout. Consider acquiring a treadmill and free weights to set up in the basement, or subscribing to a new workout app or videos, if you’ve only been exercising by walking back and forth between your desk and the fridge for the last several months.
Subsidies for Taxes
When it comes to money, working from home is a great option. The foregoing costs may be eligible for tax deductions when you complete your return next year. The purchase of home office furniture, computer equipment, office supplies, professional development charges, and travel expenditures may be deducted by your financial adviser and accountant. Depending on the size of your home office, you may even be able to deduct a percentage of your Internet, energy, and other utility costs as well as a portion of your total house square footage.
The End of the Story
There are several advantages to working from home, including reduced transportation expenses and savings on dry cleaning and business lunches. However, it’s vital to keep in mind that working from home comes with a price — it’s not free. Your budget should be re-evaluated to fit these new expenses and savings!
It’s possible to be reimbursed or paid for some of these work-from-home expenditures if you work from home as a permanent solution. When a major life transition occurs, talking to a qualified financial organization may be a significant advantage. Any changes in your income, spending, aspirations, and relationship with money should be discussed with your financial advisor.
Different Jersey residents who are transitioning and are seeking a financial adviser, or those who are ready to get another view from a new financial organization, may get in touch with me for help. It’s a passion of mine to assist folks through life’s significant changes. Set up a time when we can talk about how I can assist you as well.
LPL Financial, a registered investment adviser and SIPC-member firm, provides securities and financial advisory services.
Foran Financial Group’s financial experts may only do business with citizens of the states in which they are fully licensed or registered. Offers from people residing in other states are not allowed.