As more of us find ourselves working from home as the norm now, it’s the perfect opportunity to review where you can save money, and at the same time, work more sustainably – a subject that’s also very close to our hearts.
Fuel your pension
For many of us, commuting has become a thing of the past – well at least for now. Take a look at how much you were spending on fuel in 2019 compared to 2021 and see whether you can put any more money toward your pension contributions each month.
Say goodbye to posh sandwiches and luxury coffees
There are other benefits to not working in an office too. Think about all the lunches you bought out or the cost of a luxury coffee (maybe around £3 per coffee). Now is a great time to re-evaluate your expenses and see how you can save what you were spending to help you enjoy more money in retirement.
Whilst working from home can indeed save us money, it can also cause us to spend in other areas, which can impact the environment too.
Heat only one room
If you are working from one room, consider an electric radiator so you only heat up one room and not the whole house. To reduce your bills even further and be really eco-friendly, don a jumper or a cosy fleece to stay warm during these colder months.
Claim tax relief
If you’re working from home due to Covid-19, you may be eligible to claim for increased home costs. HMRC will consider claims from employees for things relating to your work, including the extra cost of gas and electricity whilst you work from home.
Plans meals to reduce energy and save waste
Now that we’re eating three meals a day from home most of the time, it’s worth taking the time to plan your meals for the week so that you reduce waste and save money. Batch cooking also reduces energy and means that you can spread your meals across 2-3 days.
After making all these handy savings, it’s the perfect time to review all your spending and seeing how much you are saving. You may be surprised to see how much your costs have reduced by not going into the office every day, and you may want to consider increasing the amount you put into a pension or starting an ISA with the amount you are saving. Both of which are tax efficient ways to save and will help you enjoy the retirement you want.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time, and are generally dependent on individual circumstances.