Who doesn’t love remote working? You have the flexibility to work from anywhere. All you need is a laptop and a stable internet connection.
Additionally, you can save a lot of money and time with online jobs. No more commuting, food, and clothing expenses.
But even with these advantages, a lot of remote professionals struggle to manage their finances.
How do you better manage your finances as a remote professional? Here are 7 finance tips.
Track Spending Within a Budget
Some remote workers earn a sizable disposable income, either due to higher pay or the savings as a result of working from home. (Or both.)
But at the end of each month, some of them have no money left. Where did it all go?
Well, you would know if you track your spending within your budget.
As a rule of thumb, preparing a budget helps you live within your means. It also enables you to plan for future purchases.
If Possible, Cook Your Own Meals
Do you know how expensive restaurant meals and take out are? With food delivery services, they’re highly accessible to remote workers.
Once in a while, it’s good to indulge your cravings for takeout. But doing it every day will cost you so much money.
If possible, try to cook your own meals. This is always the cheapest – and healthiest – option.
Watch Out for Online Spending
How much are you spending on online purchases? Have you checked out so many Shopee or Lazada budol finds in your carts?
Well, we’re in the same boat. With discounts, vouchers, and deals, it’s easier to splurge online!
However, you have to limit your impulse to buy stuff online. Yes, you can take advantage of deals, but make sure that they’re within your budget.
In the worst-case scenario, you can always delete the shopping app.
Schedule Errands
Even when working from home, you might need to go out once in a while. But with the pandemic virtually over, most go out as soon as they’re able.
And we all know we spend quite a bit when we’re out. Transportation, eating out, and other such unplanned expenses.
Well, you can curb some of this spending by scheduling errands in such a way that you’ll maximize your day out.
Consider scheduling grocery runs, shopping, and even face-to-face meetings in one day, for instance.
Allocate for Taxes
As remote professionals, you’re not tax-exempt. Anything you earn from your online job is taxable in the Philippines.
Some remote workers forget this. And they’re left with no budget for taxes.
It’s best to have a separate account for your taxes.
Every time you earn money, save up to around 20 – 30% and deposit it into a separate account. In this way, you have saved up for your taxes when they’re due.
Take Advantage of Tax Deductibles
Another perk of remote workers are tax deductibles. Unlike employees, you can use some of your expenses to lessen your taxes as long as these are related to your job.
You can deduct your expenses for your internet bill, rent, utilities, and more. Take advantage of these tax deductibles to save more money every taxable year.
Build an Emergency Fund
Do you have clients who stopped availing of your services? If you have no other source of income, where will you get the money for your expenses?
What if an emergency happens? Some remote workers are often one unfortunate accident away from drowning in debt.
It’s best to set up an emergency fund, just in case. A healthy emergency fund is around 3 to 6 months’ worth of expenses.
With this, you have leeway for emergencies or a cushion to tide you over until you find another client.
If you’re looking for a stable online career, you might want to consider working with reputable agencies like Remote Staff.
Most of these agencies offer long-term remote working careers for more stable cash flow. Some also take care of looking for another client for you when your current one stops availing of your services.
So follow the finance tips above and best of luck on a prosperous remote working career!
Cheers!
About Rica Jankulovski
As the Co-Founder and General Manager of Remote Staff, Rica Jankulovski has been helping small-to-medium sized companies grow sustainably and steadily by matching them with hard-working, English-speaking Filipino remote talent.
Having been born and raised in the Philippines and currently living in Australia, her unique experiences and perspectives on both cultures allow her to constantly empower both her clients and remote talents to make a meaningful difference in work and in life for the past 15 years.
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