Remote Work May Offer Financial Benefits

Submitted by Edward JonesPrint Story | Email Story
During the COVID-19 pandemic, many of us have been forced to work from home. But once we've moved past the virus, many workers may continue working from home. More than one-third of companies with employees who started working from home now think that remote work will stay more common post-pandemic, according to a Harvard Business School study. This shift to at-home work can affect people's lives in many ways – and it may end up providing workers with some long-term financial advantages.
 
If you're one of those who will continue working remotely, either full time or at least a few days a week, how might you benefit? Here are a few possibilities:
 
  • Reduced transportation costs – Over time, you can spend a lot of money commuting to and from work. The average commuter spends $2,000 to $5,000 per year on transportation costs, including gas, car maintenance, public transportation and other expenses, depending on where they live, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. If you are going to work primarily from home, you should be able to greatly reduce these costs.
  • Potentially lower car insurance premiums – Your auto insurance premiums are partially based on how many miles you drive each year. So, if you were to significantly reduce these miles by working from home, you might qualify for lower rates.
  • Lower expenditures on lunches – If you typically eat lunch in restaurants or get takeout while at work, you could easily be spending $50 or more per week – even more if you regularly get coffee drinks to go. By these figures, you could end up spending around $3,000 a year. Think how much you could reduce this bill by eating lunch at home during your remote workday.
  • Lower clothing costs – Despite the rise in "casual dress" days, plenty of workers still need to maintain appropriate office attire. By working from home, you can "dress down," reducing your clothing costs and dry-cleaning bills.
As you can see, it may be possible for you to save quite a bit of money by working from home. How can you use your savings to help meet your long-term financial goals, such as achieving a comfortable retirement?
 
For one thing, you could boost your investments. Let's suppose that you can save $2,500 each year by working remotely. If you were to invest this amount in a tax-deferred account, such as an IRA or your 401(k) or similar employer-sponsored plan and earned a hypothetical 6 percent annual return for 20 years, you'd accumulate more than $97,000 – and if you kept going for an additional 10 years, you'd have nearly $210,000. You'd eventually pay taxes on the amount you withdrew from these accounts (and withdrawals prior to age 59½ may be subject to a 10% IRS penalty), but you'd still end up pretty far ahead of where you'd be otherwise.)
 
You also might use part of your savings generated by remote work to help build an emergency fund containing a few months' worth of living expenses. Without this fund, you might be forced to dip into your retirement accounts to pay for something like a major home repair.
 
Becoming an at-home worker will no doubt require some adjustments on your part – but, in strictly financial terms, it could lead to some positive results.
 
This article was written by Edward Jones for use by your local Edward Jones financial advisor. Courtesy of Rob Adams, 71 Main Street, North Adams, MA 01247, 413-664-9253.. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. For more information, see EdwardJones.com.
0 Comments
iBerkshires.com welcomes critical, respectful dialogue; please keep comments focused on the issues and not on personalities. Profanity, obscenity, racist language and harassment are not allowed. iBerkshires reserves the right to ban commenters or remove commenting on any article at any time. Concerns may be sent to info@iberkshires.com.

Letter: Hinkell Family Thanks Community for Support After House Fire

To the Editor:

We would like to thank everybody for their generous support during these tough times for our family. We greatly appreciate all of the donations, prayers, meals, and support that has been sent our way. We feel so blessed to be part of such an amazing community and we honestly couldn't have made it through this past week without all your help. 
 
To the North Adams Fire Department, North Adams Police Department, Northern Berkshire EMS, North Adams DPW, the North Adams Animal Control Officer, and the North Adams Water Department, thank you for your quick responses to our house, saving our dogs, and making sure everyone was OK. 
 
Finally, thank you to Cutting Edge Painting for dropping everything and coming to board up and secure our house and to Thrifty Bundle for immediately cleaning clothes for us to wear.
 
As we continue to move forward, we can't help but to reflect back to how lucky we are to be able to reside in a community that is so willing to help people in need. We are forever grateful and will never forget everything that the community did for us.  We Thank you from the bottom of our hearts.

Johno, Emily, Connor and Easton Hinkell
North Adams, Mass. 

View Full Story

More North Adams Stories