It's a fact. Remote working is an essential component of the future of work. At the same time, remote jobs can present considerable challenges when it comes to personal finances. Particularly for freelancers who can experience significant variations in income from one month to the next one. How can you protect yourself? Here's our advice.
The financial benefits of working remotely
Remote jobs offer a plethora of financial benefits. Some are direct. One example is the elimination of travel costs. Yes, when you work remotely, commuting is a thing of the past. This is undoubtedly a source of substantial savings in fuel or public transport fares (not to mention the time saved).
At the same time, working from home opens up other opportunities for maximizing financial resources. For example, you can deduct part of your rent or the cost of maintaining your home, which, as a workplace, can lighten your tax burden. Similarly, employers can offer to reimburse team members for equipment and services (such as Internet connections) used in the course of their work.
The Challenges of Remote Working
Remote working is not without its challenges, especially for freelancers. For the latter, instability is often the rule. This, in turn, makes budget planning more difficult. That's why, first and foremost, rigorous monitoring of expenses is essential, an imperative that can be tedious to put in place. And that's just as well. Recent years have seen a proliferation of online applications and tools dedicated to personal finance management. They are often very well designed. Don't hesitate to use them.
Savings strategy
From a very practical point of view, and to combat this financial instability which can be chronic, it is highly recommended to build up an emergency reserve. This can take the form of liquid savings representing three to six months' expenses. Its primary purpose is to cushion unexpected fluctuations in income. It is equally important to diversify your sources of income to reduce the financial risks associated with working remotely.
Optimizing personal finances
In addition to eliminating expenses, we also aim to optimize personal finances in general. By this we mean that it's always a good idea to look back at your contracts with suppliers and customers, and to be constantly on the lookout for better deals. What's more, to go even further, you shouldn't hesitate to invest in your own financial education to optimize decision-making in this area, which is not always easy to master.
Smart investments
Financial education can also take you to unexpected shores. You may not have thought about it before, but there are many investment options available, whether in real estate, the stock market, art... Well thought-out planning can generate substantial long-term returns. Choose investment opportunities that match your risk profile and financial goals.
Think about retirement
When you work remotely, it's essential to know how to anticipate the unexpected. That's why it's so important to take out insurance to cover against the unexpected, whether personal or professional. Appropriate insurance policies can protect against the unexpected, reducing financial stress in the event of health problems, accidents or job loss. On the other hand, even if you're young, you should already be thinking about retirement. It requires long-term planning.
According to the World Bank, there will be 1.57 billion freelancers in the world by 2023, representing 46.4% of the global workforce. This means that freelancers also make up a significant percentage of remote workers. That is why they have to manage their personal finances in the best possible way. This is not just desirable. It's an obligation.