Bridging the Gap to Information

Wednesday, May 18, 2016

Does Working from Home Truly Benefit Your Budget?


More and more people are joining the freelance work population and enjoying the many benefits that come with this status. Apart from being your own boss, and working from the comfort of your home, it is argued that this kind of career also brings hefty financial rewards. But, are there any hidden costs that we might have not been aware of? Is freelancing and working from home really the best way to see more money in your bank account? The answers may not please you, but a reality check has never been more important.




A numbers game

Many work-from-home individuals have a false sense of wellbeing. Namely, when they compare the freelance hourly rates and day job rates, everything in the garden seems rosy. The critical flaw in these calculations is not including all the components of the full-time job pay package. These may involve paid health care, vacation, life insurance, professional training, meals, etc. Moreover, there are probably some items you need to pay for when working as a freelancer.

READ Top Freelancing Websites to Get Jobs and Make Good Money
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Time and money 

So, apart from the dreaded bosses, sterile offices and hustle and bustle of rush hours, there are many perks of having a full-time job. Freelancing and working from home, on the other hand, lead to new expenses landing in your lap. First of all, you need to get the right equipment, and for some professions this could cost an arm and a leg. Second, not all work hours all billable, income is unpredictable, and there is often no telling whether you will receive a raise. Finally, your utility bills are increased due to the more time you spend at home.

Paint a realistic picture

Budgeting might be more complicated for freelancers, but it is also a top-priority. The key is to identify all the expenses tied to your work activities and to put them against your income. Steer clear of faulty math and do not overlook things like food, internet, phone, emergency fund, and retirement. The goal is to obtain a realistic picture of your financial health, which may require developing some money management skills or employing a personal finance application.

The payday 

So, to break away from the tedious 9-5 world, one must display some serious commitment and strategy. When you do not have a steady paycheck, you need to figure out what your bare minimum is. Sticking to this plan acts as a buffer against financial shocks. If you receive two large payments on the same day, that is not the invitation to spend money like there is no tomorrow. In fact, it is likely you will experience work droughts, and periods when good deals are nowhere to be found.

ALSO READ  5 Challenges of managing an online business

One-man brand

Now, money makes the business world spin, but it is not the only factor that can make or break your career. You may possess great talents and a killer skill set, but what if no one knows about you? Personal branding has never been more important in the interconnected world, where social media accounts have evolved into powerful marketing tools. Try to start a blog and establish a reputation of an expert. Connect with industry influencers, get your name and story in front of the people, and focus on things you do best.

Spoiling the pajama party 

Another problem when working from home is that many people are faced with numerous distractions in the form of daily household activities. Owning an impeccable zone of productivity is paramount to a successful workday and ultimately prolific career. While researching, I’ve talked with experts behind unique JP Office Workstations. I’verealized that I am not doing myself any favors by staggering around the flat in a pajama, and spending half of the day in a bedroom. The truth is that those who assemble a dedicated workspace at home are able to stay at their best and climb the career ladder with flying colors.

Free from worries

Getting hold of facts and figures is the only way to stay on the safe side when planning out your career. Making a stable living is a mission impossible for those who fail to do this math, and include all the pros and cons of working from home. So, develop the habit of budgeting and stay responsible. This is essential for your survival of the booming, but highly competitive market of today. In the absence of these steps, you might be forced to return to the corporate world and cope with busy schedules and pressing deadlines.

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