Work from Home- I think this word would be two words of the Year 2020/ 2021. Of course behind the dreaded word – Coronavirus.
Working from home was always seen as a perk, which not all employees got. It was always thought of as an unproductive way employees spend time at home.
It was a joke if an employee says he is working from home, it was understood that he is going to ‘Pretend’ to work from home. This was also an assumption of higher management and as a practice it was never encouraged.
But this all suddenly changed after covid hit across countries. It was not possible to go to the offices. Companies quickly had to adapt and encourage employees to work from home.
This was easy or challenging depending the kind of work was being done. Over time it was well established that working from home is not necessarily as bad.
It is needed for the hour however it also gives substantial benefits to both employees and employers.
For employers the business continuity is expected in some cases that increase productivity from employees. with addition of reduction in costs such as
- Lower real estate costs
- No transportation cost of employees. Especially in cities like Bangalore Pune where companies provide home pickup and drop facilities
- Overheads like electricity, internet, housekeeping cost eliminated
Working from home also provides advantages to employees who are able to work from home. let’s take a look at them and how it benefit either your wellbeing aur your finances
1. Cost saving in commute
Depending on distance of commute or if your company provides you home pick up drop facilities.There are substantial benefits of cost and time saved because of no commute.
For example for me, I end up saving at least 2000 rupees per month. Cconsidering I have been working from home for more than a year I have saved at least 25000 rupees in past year.
If work from home stays even after pandemic I can save close to same amount each year which can be a very big amount in 5 years.
2. Saving a lunch, snacks, office parties
Even though I carried my own lunch there was still around 100 rupees that was used for snacks. There were also some occasions like birthday parties every other week for which we use to pool money together and order things like cakes, pizzas..
At least once in a month,we used to go out for dinner with our office colleagues.
Adding up this was around 3000 to 4000 rupees per month. Counting this for the year it is saving at least 30 to 35 Thousand Year.
3.Moving to low-cost Location
Working from home has the advantage of Living away from the commercial centres. There are substantial benefits to living away from bigger cities.
For example many of my colleagues have moved to lower cost locations or back to their hometown. This has considerable financial benefits, for example in Mumbai a very small Apartment will cost you 50,000 rupees rent per month.
You can stay in a similar sized home for half that amount in a city like Pune. Smaller cities also have considerable lower cost of living.
This is considered to be a very big savings that can be used to increase your monthly Investments.
4.Less spend on professional clothes
If you work in offices with highly professional elements, you probably would have noticed the amount you have saved on clothes.
To keep up with the trend and maintain a certain standard you end up buying clothes, shoes and accessories worth thousands of rupees every year.
For me I have saved at least 20000 rupees last year because I was working in my shorts and t-shirts the whole year.
5.Spending less on daycare and other help
Due to this pandemic many day cares have been closed and kids are staying at home with parents. Daycares can be very expensive especially in big cities. Elimination of this cost though not convenient does put up big saving numbers.
These are just a few examples I am sure they would be more money saved with working from home. It is important how you use this additional saving.
It is easily possible that you could have saved 50,000 rupees in the last year. If you are wiser, you should put this savings to work for your financial freedom.
