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Working from Home

METRO photo

By Leah S. Dunaief

Leah Dunaief,
Publisher

Many people in their pajamas are now summoned to get dressed, leave their homes and work full-time in the office. The working-remotely imperative is being phased out as COVID-19 fades and the new year begins. No more pajamas in front of the computer, disguised with a proper work shirt as far as Zoom revealed. Remote work is becoming a unique chapter of the pandemic past.

Or is it?

Let me take you back to July 1965. I had just given birth to our first child in a Westchester County hospital, just north of NYC, and was in something of a new mother daze when my supervisor from work appeared at my bedside. I had been employed as a researcher in the editorial department at Time Inc until that past weekend, and the baby coming a little early surprised us all, apparently including my boss.

She was an attractive woman in her 40s, trim and almost six feet tall, and she supervised some 20 staffers. For a couple of seconds, I thought I might be imagining her, but she pulled up a chair, as if this visit was an ordinary occurrence, and we had the following conversation.

“Hello, Leah, congratulations to you and your husband.”

“Hello, Bea. What’s happening?”

“Oh, I thought I would drive up here to congratulate you properly, see the baby, and ask you if you would like to continue working.”

“What?”

She laughed. “I know you live in the Bronx, about 30 minutes from the office (which was in the Time-Life Building at 50th and Sixth Avenue) and right on the D line (subway). We could bring you the material and the books you need by messenger. Then, when you finish each batch of work, we could repeat the process. For questions, we could call you and discuss by phone. What do you think about that?”

I blinked. Was this really happening?

“I think I will be taking care of the baby,” I offered after a long pause.

“We thought about that. Mia (a staffer in the department) no longer needs her nanny, and she could  continue her work with your baby in your apartment. She is from Haiti and speaks little English, but I believe you speak French, yes?”

“A little.” I was now in a different daze.

“Then this could work. You will be able to stay at home with the baby and work comfortably in your apartment while the nanny takes care of your son from 10-6 (our business hours) in the next room. She will come Mondays through Fridays. She is very responsible. She has five sons of her own.”

Then she said those prescient words without knowing she was 60 years ahead of her time.

“You will be working remotely.”

And so it went. A few days after we brought our son home, the first batch of work arrived from the office via a cheerful messenger, and I was set up at a desk in the bedroom to continue my job. 

The nanny, Madame Bayard, also arrived and lovingly greeted and cared for our baby until I would appear. This unusual arrangement continued for almost two years. I would return to the office perhaps once a month for meetings and to touch base with my editor of the moment, but otherwise I did indeed work remotely, even from my parents’ bungalow in the Catskill Mountains the following summer. We gave Madame Bayard the time off, and while my mother cared for our son, I worked on a comfortable chaise in the shade of a tree, driving to the office only a couple of times in two months.

This idyllic arrangement ended when my husband finished his residency, and we moved to Texas, where he served at an Air Force base during the Vietnam War.

I finally left the employ of Time-Life. It was now too far for even a messenger to reach me. But today, my grandson and his wife both have satisfying jobs that call for working remotely.

Photo by Pixabay

By Michael Christodoulou

Michael Christodoulou
Michael Christodoulou

During the COVID-19 pandemic, many of us have been forced to work from home. But once we’ve moved past the virus, many workers may continue working from home. More than one-third of companies with employees who started working from home now think that remote work will stay more common post-pandemic, according to a Harvard Business School study. This shift to at-home work can affect people’s lives in many ways – and it may end up providing workers with some long-term financial advantages.

If you’re one of those who will continue working remotely, either full time or at least a few days a week, how might you benefit? Here are a few possibilities:

  • Reduced transportation costs – Over time, you can spend a lot of money commuting to and from work. The average commuter spends $2,000 to $5,000 per year on transportation costs, including gas, car maintenance, public transportation and other expenses, depending on where they live, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. If you are going to work primarily from home, you should be able to greatly reduce these costs.
  • Potentially lower car insurance premiums – Your auto insurance premiums are partially based on how many miles you drive each year. So, if you were to significantly reduce these miles by working from home, you might qualify for lower rates.
  • Lower expenditures on lunches – If you typically eat lunch in restaurants or get takeout while at work, you could easily be spending $50 or more per week – even more if you regularly get coffee drinks to go. By these figures, you could end up spending around $3,000 a year. Think how much you could reduce this bill by eating lunch at home during your remote workday.
  • Lower clothing costs – Despite the rise in “casual dress” days, plenty of workers still need to maintain appropriate office attire. By working from home, you can “dress down,” reducing your clothing costs and dry-cleaning bills.

As you can see, it may be possible for you to save quite a bit of money by working from home. How can you use your savings to help meet your long-term financial goals, such as achieving a comfortable retirement?

For one thing, you could boost your investments. Let’s suppose that you can save $2,500 each year by working remotely. If you were to invest this amount in a tax-deferred account, such as an IRA or your 401(k) or similar employer-sponsored plan and earned a hypothetical 6% annual return for 20 years, you’d accumulate more than $97,000 – and if you kept going for an additional 10 years, you’d have nearly $210,000. You’d eventually pay taxes on the amount you withdrew from these accounts (and withdrawals prior to age 59½ may be subject to a 10% IRS penalty), but you’d still end up pretty far ahead of where you’d be otherwise.)

You also might use part of your savings generated by remote work to help build an emergency fund containing a few months’ worth of living expenses. Without this fund, you might be forced to dip into your retirement accounts to pay for something like a major home repair.

Becoming an at-home worker will no doubt require some adjustments on your part – but, in strictly financial terms, it could lead to some positive results.

This article was written by Edward Jones for use by Michael Christodoulou, ChFC®,AAMS®,CRPC®,CRPS® of the Stony Brook Edward Jones.

Edward Jones, Member SIPC