With companies opting to conduct business remotely in light of COVID-19, it turns out that remote work has its advantages. As the pandemic forced shutdowns across the country in March, 3.4 million Canadians switched to remote work by April.1 While the number has been steadily declining since as workers return to the office, many continue to work from home - and may continue indefinitely.
What can be gained by a remote work schedule other than comfortability? Are there any actual financial advantages? The answer is a resounding yes - and these are just five of how remote work may give you more financial freedom.
Benefit #1: Less Work Expenses
You probably don’t realize how much money you tend to spend when working away from home. Just cutting your commute can save you thousands of dollars each year on gas, or more depending on how far you travel.2
You’ll also spend less money eating out or buying coffee, which quickly adds up when you do it most days a week. For example, say you buy a $4.00 cup of coffee just three days a week. In a year, that could add up to over $600.
You can save, too, on some unforeseen expenses: clothing and dry cleaning, for example.
Benefit #2: Tax Deductions
Many traditional employees will not be able to take advantage of work-space-in-the-home tax deductions. However, those that fit the qualifications can. These individuals need to prove:
- The space is used more than 50 percent to do your work.
- The workspace is only used to earn your employment income.
- It is used regularly and continuously to meet clients or customers and/or others in relation to your employment duties.3
The work-space-in-the-home deduction caters best to self-employed individuals, small business owners and independent contractors.
Benefit #3: Flexible Hours
Even if you’re working as an employee for another company, working from home often gives you more flexibility to “be your boss.”
If you’re working an hourly wage, you can get more of a say about when you work and how much you’re making. If you choose to work less, you have more time open to earn money in other ways, such as through freelance work.
Benefit #4: Time for Other Business Ventures
Working remotely, as mentioned above, typically provides you with more flexibility. You can earn some extra cash - without sacrificing too much time - by exploring other earning methods.
Consider starting your own small business venture on the side or offering freelance services, both of which you can design according to your new schedule. Making the most of this extra time, you’re given can be the key to becoming a higher earner.
Benefit #5: Possibly Cheaper Insurance
Some car insurance companies will cheapen your insurance if your commute has changed. If you typically commute regularly, call your insurance company, and let them know your commute has changed. Lowering your annual kilometre count will likely reduce your monthly premium.
Many workers favour remote work for the flexibility and capability to carve their own schedule. If you’re considering keeping your work remote, these five financial advantages are compelling reasons.
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