The pandemic has signaled a massive shift in the way we work. 21% of all working Americans now work remotely at least once a week. That means that over 30 million of us are taking advantage of remote work, and are making large savings on commuting costs and workplace expenses.
It is no wonder that 43% of full-time workers in America want to continue remote working after the pandemic, as those that do work remotely can save time, increase their savings, and make forward-thinking investments.
Get Your Expenses Paid For
When you first start working remotely, it might seem strange to ask your employer to pay for things that will stay in your own home. However, many employers expect you to ask for reimbursement and will happily pay for expenses connected to work like computer costs, mobile phone services, printers, and broadband services. Ensuring that you get reimbursed for expensive work costs will help you increase your savings and will allow you to make better use of your money as a remote worker.
Depending on the state you live in, you may be eligible to claim reimbursements on your tax return. However, before buying that new desk you should take care to ensure that you will actually be reimbursed as recent legal changes make it harder for many remote workers to claim for home office deductions.
Sell Your Home
It sounds extreme, but now is a great time to sell your home. Interest rates have been lowered in response to the Covid-19 crisis and there is less competition in the current real estate market. October of 2020 saw the strongest house prices since 1996, as many folks took advantage of these factors.
While traditional wisdom states that the best time to sell is in the spring or summer, that trend no longer seems to matter in the wake of the pandemic. Advancements in technology and a low inventory for real estate agents mean that the best time to sell is now. Moving homes also allows you to prioritize space for remote work, which means you no longer have to work from the kitchen table.
Leverage Your Savings
According to a survey by FlexJobs, the average remote worker saves $4,000 a year compared to folks who still commute into an office. This means you have a significant chunk of change to invest into your future to achieve financial independence. Growing your assets through investments means that your $4,000 will work for you regardless of where you are in your career. It can be scary to make your first investments, but you should always remember that inflation means that the money sitting in your savings account is losing value. By making good investments, your savings and assets should grow beyond the rate of inflation.
Upskill Through Online Learning
As well as saving money, remote workers save time. You don’t need to make commutes anymore, and it is easier to pack up on time when you’re working at home. You can use that newfound free time productively by investing in online learning. eLearning has evolved greatly in the last two years as it became more accessible than ever. Commitments to further learning will improve your work-related abilities and will make you a more competitive candidate for future roles and promotions. Additionally, forward-thinking employers often sponsor employees’ education as they recognize this will improve employee motivation and retention.
Avoid Unexpected Bills and Taxes
Working remotely means you can bounce around from place to place and take your work with you. However, living a nomadic, remote working lifestyle can potentially lead to some unexpected costs as state taxes vary and may impact your overall tax return. If you’re seriously considering taking your work with you as you tour the country, it is worth consulting a financial advisor first who can help you navigate the complexity of taxes in multiple states.
Get a Side Hustle
You may not want to use the time you save on commuting for more work, and that’s okay. However, if you feel like you have the desire to work more and want to increase your income, then you should seriously consider a side hustle of some kind. Over two million Americans began freelancing in the past 12 months and are supplementing their income while doing something they love.
Getting started as a freelancer can be tricky, as you’ll have to navigate a whole new paradigm of working. However, if your freelancing efforts are successful, you can start to command higher hourly rates and will be able to add a significant stream of income to the salary you already earn as a remote worker.
Moving Forward
By taking advantage of the financial rewards associated with remote working, you can successfully build your savings, make key investments for the future, and might even discover a whole new career in freelancing. It makes sense to take advantage of the time and money you save by working remotely, and just a little planning and preparation can set you up for years to come.
