The coronavirus pandemic is unlike anything most people have ever experienced in their lifetime. Certainly, for me, I could never have imagined a time when the borders would close not just internationally but between all Australian states. There have been some workplace culture changes as well as a result of the pandemic, the biggest one being the rise in working from home. Now depending on who you ask, working from home is either the best thing on this planet or a ticket to insanity.
Even by working in an industry with the option to work from home, we have to acknowledge some privilege. At the height of the pandemic, essential workers who were on the front lines of the virus were not in a position to roll out of bed at 8AM and log onto work in their pajamas. They were out there doing their jobs because it needed to be done and at a great cost. No one can ever really know the true death toll from covid as the numbers are likely far greater than currently reported, but we know that it is in the millions worldwide.
Working from home for those who are in occupations that can was used as a temporary solution to the pandemic. Except after two years, it suddenly seems like it may not be such a temporary thing. More and more companies are realising the benefits of working from home, for both their bottom line as well as their employee’s workplace satisfaction. From the company’s perspective, it saves them money on overheads. With staff working from home the business may no longer have the need to rent a commercial office space and have all the ongoing costs of electricity, water, internet, etc. There have also been studies that show that employees are actually more productive working from home, which could help alleviate fears that people are just sitting at home watching tv all day. Prior to the pandemic, it was rare to see job advertisements advertising full-time remote working options, but that is certainly no longer the case.
Employee satisfaction and productivity is another thing that businesses seem to now take into account. The prevailing attitude towards working from home can range from people who absolutely love it to people who despise it. Some people love having the flexibility of a later wake-up and no commute times. The amount of extra time to get things done becomes very apparent throughout the day when you no longer have a 40-minute train commute each way. On the other hand, some people can get a little stir crazy being cooped up at home on their own for work. There are many variables and factors but overwhelmingly at least having the option to work from home a few days per week can have a huge benefit to most people’s quality of life.
The savings
Looking at working from home purely from the financial perspective, let us break it down. You are no longer spending money throughout the week on:
- Fuel, public transport tickets, parking, wear and tear on your vehicle. This would be a huge saving of at least $40-60 per week, if you have a standard 20-40 minute commute. Probably more if you have to pay for parking in the city. Not to mention the reduced stress of not needing to navigate a busy train platform or getting stuck in a gridlock traffic jam.
- Takeaway lunches & coffees. Getting through the day is often hard without a pick me up with your workmates. I sometimes go out for food or drink at work not because I actually want those items but purely to get away from the office for a while. I am sure I am not alone in this? A take away coffee every day and a few lunch dates can quickly add up. When you are working from home, it is very unlikely that you will have these same temptations and accessibility. This will save you so much money per week depending on how bad you are with buying food at work.
- Clothes & makeup. When working in a professional office environment you need to dress a certain way. This will cost you a decent amount, as a $5 kmart tee might not cut it when you have meetings with the board of directiors. Working from home means you can join the zoom meeting without anyone even seeing your clothes. Less wear and tear on the good clothes you do own and less of a requirement to be out purchasing new items for expensive meetings. The same goes for makeup. If you are a woman that likes to wear makeup to work it is probably unlikely that you would do the same for a work from home day. Makeup, especially good makeup is expensive and saving it for those face to face meetings will save you money.
- Child care/after school care. If you have kids the flexibility of working from home can be a godsend not just to your own emotional wellbeing but also your wallet. With most parent’s both working 9-5 it can mean you have no other choice than to place your young child in afterschool care. But if you work from home, you might have the flexibility to pop out for 15 minutes and pick them up from school. With childcare arrangements working from home could give you so much more flexibility. Whilst it is pretty safe to say that most people would still be unable to work from home and look after a baby aged 0-5, it might give you the flexibility to have a cheaper alternative. Do you have another mum friend or grandparent who can come over and watch the kids whilst you work and then you do the same for her when she has her work from home day. The cost of childcare can be a huge barrier for women getting back into the workforce and eat massively into the weekly pay packet, so it is time to get creative with how we can use working from home to our advantage.
- Time. How much is your time worth? Commuting 45 minutes each way is an extra 1.5hr in your day that you can not get back. That time could be spent doing chores around the house so you don’t need to spend your weekend doing them or spending time with your partner/kids. This is something that you can’t really put a price on. The whole goal of financial indepedence is to have choices and freedom. Part of that freedom is not wasting time with activities that serve no benefit. I would consider commuting as serving no benefit to my life. Even though you can not put a price on this aspect of working from home, in my opinion it is the most important saving.
- Tax claims for work expenses. When you are working from home you will have additional expenses you can claim in your tax return. You are saving money on all the above but by working from home you are also probably increasing your electricity and water bill. Especially if you have the airconditioner running all day. If you don’t have a work phone provided to you, you can also claim part of your internet and phone costs that are used in association with your work. Be sure to keep records so that you can work things out easily at tax time.
Conclusion
In this post-pandemic era of working from home becoming accessible for normal office-based roles, think about what your ideal scenario is. Is it full-time work from home or would you rather have some sort of split between home and the office. When searching for a new role or negotiating in your current position, I personally believe that working from home benefits can be as attractive as a salary increase. The savings alone could equate to an increase of a few thousand dollars per year. Don’t be afraid to ask the question, because you just might get what you want. Especially if you can prove to your company that you are just as if not more productive when working from home.
