Many remote jobs have opened during the pandemic, transforming the modern work landscape. In recent years, the number of remote workers surged. In 2023, 28.3% of full-time employees work a hybrid model, while 12.7% work from home.
These statistics show many individuals are encouraged to become remote workers because of its advantages. More than flexibility in time, this work setup offers financial advantages, as workers won’t have to spend money on commuting and other expenses related to working in a physical workplace.
Great financial power comes with great responsibility. To help you manage your money well, here’s a guide to financial wellness in the era of remote work.
Understanding Financial Wellness
Financial wellness measures an individual’s ability to manage their financial resources. Individuals can achieve short-term and long-term financial goals with healthy money habits and a holistic approach. By building your savings, sticking to a budget plan, and learning how to pay off a loan early, among many other financial approaches, you can achieve financial wellness.
Shifting to remote work means facing significant changes in managing your money. To help you understand better, let’s break down how working remotely can impact your financial wellness:
It’s pretty obvious why many people are encouraged to shift to remote jobs—the potential cost savings. Of course, you don’t have to travel from your home to your office, saving you transportation costs and other expenses. Plus, you won’t have to spend money on different office attire.
Additionally, when you work from home, you don’t have to buy meals. You can just grab something from your fridge and throw it in the pan for an inexpensive homemade grub.
While remote jobs aren’t for everybody, many find this setup less stressful. Many remote workers find it easy to maintain a healthy work-life balance.
Because you don’t have to commute long hours, you can extend more time for hobbies and leisure activities that can boost physical and mental health. It indirectly affects your financial health, as you won’t have to visit the doctor often for any stress-related issues.
Remote workers aren’t also forced to relocate so that they would be somewhere near their workplace. Instead, they can pick an area with a lower cost of living, positively impacting their finances.
Isolation and Increased Expenses
As many remote workers live alone, this could affect the greater budget for utility costs. At the same time, you have to invest in suitable devices and an internet connection, among other home office setup costs.
Financial Wellness Strategies for Remote Workers
To leverage the convenience of remote work and reap financial benefits, prioritize your financial wellness through the following tips:
Budgeting and Expense Management
As you transition to remote work, it’s essential to identify and cut unnecessary expenses. For instance, look at your subscriptions and memberships that you can discontinue. Sometimes, you can get trapped in a loop of impulse purchases. That is why you should review these expenses and save money on charges that could accumulate over time.
In setting your budget, you can evaluate your expenses weekly or monthly. Of course, you must consider remote work-related costs and add them to your budget plan. It includes internet connection, utilities, a portion for mortgage or rent, and necessary home office supplies.
Establishing a Home Office
Your home office is where you do your job that makes you money. That’s why investing in cost-effective setup ideas that fit your remote work is essential. To save money, you can purchase second-hand equipment. Just ensure they have suitable features that could suffice the demands of your tasks. You can also repurpose old furniture or do do-it-yourself upgrades for your desk at home.
Maintaining a Routine
To foster a healthy work-life balance, establish working hours and stick to it every day. By building a routine, you can make use of your personal time wisely and do your work as required. You can just do the usual routine you have when you are working in the office. It allows you to boost productivity and avoid getting overworked.
In addition, working from home may bring more distractions than the typical setup. To maintain focus, incorporate breaks in your routine to recharge, reset your mind, and improve your overall well-being.
Prioritizing Mental Health
Remote jobs can sometimes make you feel isolated. To cope with feelings of isolation, you can schedule virtual meetings with friends and colleagues to discuss things unrelated to work, allowing you to disconnect from the hustle and stay socially connected.
Many remote jobs also offer counseling services and mental health resources you can avail of. Grab this opportunity to talk to professionals and discuss anything taking a toll on your mental health.
Upskilling and Diversifying Income
You can find many online courses and certifications, among other remote-friendly opportunities. Invest in taking these upskilling options to remain relevant in your industry. Moreover, you can also apply for additional freelancing jobs and other side hustles that you can do remotely. This way, you can be more competitive in the job market and secure financial stability in the long run.
Becoming a remote worker isn’t all about earning more than you can make with the typical 8-5 workweek. There could be challenges along the way, and the experience could vary from one to another. While earning potentially large amounts of money, prioritize financial wellness. Many remote workers follow different approaches, but the ones we have included in this guide worked for many achievers!
Written by: Sally Trase