Is Hybrid Work Stealing from Your Emergency Fund?

How often does your employer expect you to come into the office? That number can have a profound impact on your ability to save for the future.

According to the National Bureau of Economic Research, people who work from home one to two days a week save as much as $5,000 a year. 

In other words, you lose money every day you have to go into the office. 

While many corporations take a flexible approach to hybrid, requiring their employees to work from the office just once a week, many more ask employees to come in three to four days a week. If you need to go into the office, every day you commute skims off the top of your paycheck. 

Is there anything you can do about it? Let’s explore your options.

Prioritize Savings No Matter What

Regardless of your at-home-to-in-office ratio, you need to ensure your budget reserves some funds for savings. A common rule of thumb recommends saving as much as 20 percent of your take-home pay, but this isn’t possible for everyone across the board. 

You may be able to save more or less depending on your unique cost of living. Thanks to inflation, most people pay more than they used to on the usual things in their budget. And while inflation isn’t as high as a year or two ago, it still means your expenses use up more of your paycheck, leaving less for you to save.

The important part is that you save, no matter how much that winds up being. If you fall short, you can find a line of credit or personal installment loan online, choosing the right option for your emergency. Taking out a loan online can help you bridge the gap in your savings, so you don’t have to delay urgent repairs or medical care.

Rebuild Your Budget with Hybrid Work in Mind

If you have to be in the office more days than most, it’s time to check in with your budget. 

Calculate the new costs your commute will add to your spending, like transportation, wardrobe, and food. 

Don’t forget to think about indeterminate spending, like wear and tear on your vehicle. The AAA says every mile of driving adds roughly $0.09 to maintenance and repair costs.

Knowing these current and future costs, can you budget handle your hybrid work model? 

If you would struggle to save at the same time, look to your non-essential spending for some relief. Limiting takeout while at the office, cancelling subscription services, and reducing how often you take rideshares can help you juggle your commute and emergency fund. 

Is a New Job in Your Future?

At the end of the day, you have to evaluate your financial situation and your career goals. If juggling the cost of living is getting harder by the day, it may be time to switch jobs. 

Figure out what you need to do to snag a higher-paying job that offsets these costs. Look at growing industries, such as tech, cybersecurity, and the SIEM market.

While many companies have embraced a hybrid work model, many others still allow a totally work-from-home option, too. At the very least, you can start applying to companies where you know they limit their in-office days to fewer than you currently work. 

In any case, it never hurts to update your resume and look at the job market! You never know what you might find.