Before the pandemic, most employers shunned the idea of their staff working from home. Fast forward a year, and many employees are happy to find this arrangement may become more permanent. Working from home provides many perks, including a slew of financial benefits you should capitalize upon immediately.
Identify Your Potential Savings
While most employees immediately saw the potential monetary savings of working from home, you must identify these savings and put them to work for you.
Begin by listing all the expenses you have working in the office versus at home, such as:
- Commuting & transportation costs
- Lunches out
- Parking fees, garage fees, toll road costs, etc.
- Office attire
- Dry cleaning costs
- Wear and tear on your vehicle
- Coffee runs
When working every day at the office, these expenses are normal, and you likely don’t give them a second thought. However, once you add up all these costs, you begin to see just how much you could save on a recurring basis.
Seize Your Savings
After you identify your potential savings, it’s essential to put an action plan in place to capitalize on this newly available money. The easiest way to accomplish this feat is to automate your savings through Payroll Deduction or Automatic Transfers.
Both options allow you to automatically transfer money into your savings account without you lifting a finger each month. While they are similar in nature, there are differences.
- Payroll Deduction allows you to designate a specific amount or percentage of your paycheck to be deposited automatically into your savings on payday. Working in combination with Direct Deposit, this tool can also be used to make loan payments, ensuring you never miss a payment.
- Automatic Transfers are similar to Payroll Deduction but are not tied to your paycheck. Instead, you choose a specific day each month for a set amount to transfer from your checking account into your savings account (or other investment or loan account).
Both options allow you to put your savings on autopilot. Soon, you won’t even notice these funds coming out of your account each month, but you will notice the boost to your savings.
Stay Motivated with a Purpose
Anytime people come into new money, whether a gift or, in this case, newly freed-up funds, there is the temptation to spend it frivolously. To overcome these impulses, it’s helpful to establish a financial goal tied to your newfound money, such as:
- Saving for your child’s college
- Taking a well-deserved vacation
- Creating an emergency fund
- Purchasing a new vehicle
- Making a down payment on a new home
- Updating your home (kitchen, bathroom, or home office)
When you have a purpose behind why you’re saving, the process becomes much easier. Otherwise, those temptations to spend will only grow as you watch your savings balance increase.
We’re Here to Help!
Life is full of opportunities and working from home provides you with the ability to put more of your hard-earned dollars back in your pocket. Whether you’re interested in opening a new savings account or want to learn more about Payroll Deduction and Automatic Transfers, we’re ready to help.
Please stop by any of our convenient branch locations or call 813-782-4899 to get started today.
Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.