Financial benefits of working from home

While the country returns to normal following the height of the pandemic, many people are still finding themselves working from home. It’s not surprising to learn that working from home can be very different from working in the office. There are new complications.

However, working from home also provides a lot of opportunities that working in an office does not. Aside from listening to music or lounging in your comfy clothes, working from home also provides some opportunities to get ahead financially.

Review your budget

Since you’re working from home, things have probably changed financially. You’re more than likely driving less (and using less gas), eating out less (no daily coffee stops) and using more electricity than you did when you worked in the office. Take the time to review your budget and make the necessary adjustments. Remember, you don’t have to simply transfer money from categories with a surplus to categories where you’ve overspent. Take this opportunity to introduce some new things into your lifestyle and budget.

If you don’t have a budget, now is the perfect time to create one. You can find a variety of free budgeting calculators and outlines online.

Review your insurance policies

While you’re reviewing your budget, take the time to review your insurance policies, especially your auto insurance. You may be eligible for a rate reduction if your policy is based on how much you drive.

Build up your savings

Instead of spending any extra money, you could build up your savings. If your emergency fund doesn’t have at least three months’ worth of salary, consider using any extra money to beef up that account.

If you have a robust emergency fund, consider looking at investment opportunities like a certificate of deposit or a money market account with a higher interest rate. Both are great options to build your financial portfolio.

Invest in yourself

One of the benefits about working from home is how much free time you get back, whether it’s time saved during your commute or not having to go out and eat during your lunch break. Use that free time to invest in yourself by learning a new skill, taking up a stress relieving hobby or exploring ways to make extra cash.

Also, take the time – and some of that extra money – to create yourself a nice workspace. It will help you stay focused and be more productive throughout the day. While this isn’t a direct financial benefit (although you may be eligible for a tax deduction), it will help you perform better and potentially yield additional benefits in the future.

Working from home can be very different than working in an office, but it can also provide financial opportunities unique to the setting. If you adjust your budget for your current needs, and invest in yourself, you can end up in a better place than you started.

Details from this blog can be found in its entirety at:

https://www.firstalliancecu.com/blog/4-best-financial-moves-to-make-when-working-at-home