On 19 January, Boris Johnson brought the working from home rule to an end. An enforcement that was introduced to reduce the spread of the Omicrom variant. Since the start of the pandemic, working from home is something that we’ve all got used to, and even as restrictions lift, many people are continuing to work from home and only returning to the office on a hybrid basis.
One of the benefits of working from home is the amount of money you can save. The average UK employee spends £126 a month commuting, according to Real Business Rescue[i]. This means working from home could result in £1,500 a year in savings.
Whilst working from home certainly has its perks, there are other cost implications of being in the house all day, so here are some tips to help reduce costs and save money whilst working from home:
Lower the thermostat
With energy prices set to rise, it’s time to be more frugal with the heating. Small things such as lowering the thermostat by just 1 degree can have a huge impact on your heating bill, reducing it by up to 10%.
Working from home can save on lunch costs and coffees that we buy on the go. The average cost of a latte is £2.76, according to research from ThinkMoney.co.uk.[ii] That’s £13.80 per week, £717 per year! By saving on takeaway coffees, not buying lunch out every day and planning meals in advance, it’s amazing how much we can reduce food waste and save.
What to do with the money you’re saving each week?
It’s important to review your spending and see where your money could work better for you. Thinking longer time, saving into an ISA or contributing additional money to your pension are better options than just putting your money into a savings account where the interest is currently very low.
There is a range of ISA’s available from a stocks and shares ISA and help to buy ISA to a Junior ISA for parents who want to prepare their child’s financial future. Remember to make use of your Personal Allowances before the tax year end on the 5th April.
Regular financial review
We always recommend reviewing your financial circumstances regularly with a financial advisor. They will identify the most suitable investment vehicles for the money that you’re saving to make sure that your money is working for you.
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.
[i] Real Business Rescue Survey January 2022
[ii] Think Money July 2020