Working from home seems to be the new norm. It may even outlast COVID-19. Employers have been able to cut back on expenses associated with maintaining office space. There’s less cleaning to be done and less energy being used. Most employees use their own internet connection, and some are even using their personal PCs and laptops. Not having to provide equipment is another savings for employers. Now ask yourself if you can save in some way. You can. The most common areas of savings are:
· Eating Out
· Clothing / Uniforms / PPE for work
They may not look like huge savings on the surface, but they are; let’s break it down.
On average you can save $107.50 from not having to fill the car with gas each week, not going out to lunch like you would if you were in the office, and not having to pay for work wear or dry cleaning. These are just typical expenses associated with most people that work. Tailor your actual savings to your lifestyle. In a year’s time that becomes a nest egg of $5375.00 [ $107.50 x 50 weeks], That’s nothing to sneeze at. We don’t know how much longer this type of opportunity to pause these expenses will exist. Optimize it while you can! Save the money or put it to good use by paying things off early to save money on interest.
Remember, money is a tool. A tool that gives us access to the things we want and need. The way not to be bound to it is to control it. That means controlling your spending and being deliberate and purposeful in your management of the tool. 2020 revealed how prepared or unprepared most working-class people were and are when faced with job loss or a prolonged financial crisis. Although vaccines are being rolled out, life as we know it is forever changed. We have to change and adjust to the times. One way to do that is to adjust the way we utilize money. Clearly, having an ample amount is a good foundation.
So, if you’re on board with this idea, here is a place you can start:
1. Run the number : Get as close to exact numbers as possible. The more accurate you are the more useful the information is to you.
2. Be realistic: Large numbers look great on paper, but if saving that amount puts you in a bind each week and you must pull the money back out of savings, this isn’t productive.
3. Stay the course: After a while, that little nest egg is going to look very tempting. It’s easy to talk yourself into a gift here, a splurge there, and before you know it, your nest egg is a nugget or worse, the balance on the account gets so low that you convince yourself it’s not worth holding on to at all and you spend the rest. DON’T FALL VICTIM TO THIS TRAP.
4. Set a goal, it can be a dollar amount or a purchase. Either way, make it something that motivates you to keep saving. When you reach the milestone, wait 30 days before making the purchase, in that time, continue to save. If you still want the item, buy it; however, think long and hard about the time and sacrifice it took to get to that point and where you will be in another 6 months if you continue saving.