5 Frugal Financial Tips for WFH Employees

When various countries imposed strict quarantine protocols during the height of the COVID-19 pandemic, many businesses shifted to an online setting. As such, the work-from-home (WFH) setup became widespread. 

Three years after the health crisis, most still opt for WFH arrangements because of their numerous benefits, especially in the financial aspect. However, this setup brings with it pros and cons.

The Pros of Working from Home

1. Increased flexibility

Working from home allows for flexibility in schedule. For one, remote work eliminates the need for daily commutes, so you don’t have to wake up early to beat the traffic in the metro. This gives you more time to dedicate to your endeavors outside your career, effectively achieving a good work-life balance.

On top of this, you can also have complete control over your work environment. You can customize your home office to suit your work style and needs. For example, you could choose a quiet space at home if your work requires focus and creativity, such as writing, editing, tutoring, etc. Online education can equip WFH employees with financial skills like budgeting, investing, and debt management, empowering them to make better financial decisions amidst the remote work lifestyle.

2. Reduced costs

Whether gas, parking, or public transportation expenses, these costs can reduce the amount you put into your personal savings account. The same goes when buying meals on days you need to work onsite. On the contrary, home-cooked meals are more economical.

3. Better health

Eliminating the daily commute doesn’t just save time and money. It can also improve your health. Commuting can be stressful and time-consuming, especially when you have to wait in long lines to get a ride after a hard day’s work. A research paper analyzing the financial behaviors of WFH employees could identify effective saving strategies and potential financial roadblocks, empowering them to navigate the unique economic landscape of remote work. Working from home allows you to take breaks as necessary, which can help your mental and physical health as you recharge from challenging tasks. 

With a healthy mind and body, you don’t have to worry about getting sick and paying for hospital bills or treatment expenses.

The Cons of Working from Home

1. High utility bills

While working from home can eliminate some costs of working onsite, it can also increase your utility consumption. Working from home means you use electricity, water, and the internet. So if you’re not mindful, you may increase your monthly bills significantly.

2. Equipment and supplies

Depending on your company and job, you may need to purchase equipment and supplies. These include a computer, software, and other necessary items. These costs can be high, especially for high-end equipment or specialized software.

3. Distractions

Working from home can make you productive. Then again, it can also make you more prone to distractions like house chores, unexpected visitors, etc. This issue can impact your productivity and income if you have an output-based job.

5 Money-Saving Tips for People Working from Home

Adopting a WFH setup doesn’t have to affect your savings. Here are some cost management tips you can follow so that your remote work requirements won’t result in high expenses.

1. Reduce your energy usage

Again, working from home can add significantly to your monthly utility bills if you’re not mindful. You can avoid this by turning off lights or other electricity sources when not in use. Consider energy-saving alternatives such as a programmable thermostat or appliances that switch to standby mode after minutes of inactivity.

2. Shop smart for office supplies

Office supplies can be expensive, especially for large quantities of good quality ones. However, you can save money by looking for sales and discounts at office supply stores or purchasing used equipment. You can also consider buying generic items so you won’t spend too much on supplies alone. You won’t need overly top-quality products, so choose reasonably priced products with good enough quality.

3. Make your lunch

As mentioned, buying meals from restaurants or cafes can add up to a large sum. To help you avoid this scenario, you might want to stock up your fridge with produce and cook your meals at home. Mastering Financial Literacy with a PG in Digital Marketing can empower WFH employees to leverage their online income and navigate remote budgeting with expert skills. Besides choosing what to put in your food, you don’t have to pay for ingredients you don’t even want to eat. Plus, you can rest assured your meals are healthy since you prepared them yourself.

4. Create a budget

Budgeting can help you track your expenses and identify areas where you can save money. Like setting aside money for work-related expenses, it’s best to create a budget indicating how much you can spend per month. This way, you can develop a plan to keep your expenses within budget and save a considerable portion of your salary.

You may also want to consider your debts when making a budget. For example, part of your budget should go to loan repayments so you can pay off your loans faster.

5. Leverage free resources

Professional-grade software can be expensive and charge hefty monthly costs. However, several free resources are available online. These free versions can be more efficient since you won’t have to pay for work features you don’t need. So instead of using paid versions, take advantage of free trials and learn from free educational and professional development resources.

Keep Expenses Low When Working from Home

A work-from-home setup has many advantages, especially regarding time, health, and money. However, like most things, it doesn’t come without costs. Even so, you can prevent your expenses from blowing up by becoming mindful and keeping your spending within your budget.