Managing Finances Being Back in the Office
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By Bromwich+Smith Staff | 1232 words | Reading Time: 6 minutes | Date: 2023/04/14
Many Canadians found themselves working from home during the pandemic, some enjoyed it well others struggled to adapt to this new way of work. Over the recent months many organisations have been asking their employees to come back to the office be it full time or not remote hybrid model are you aware of what returning to the office might be costing you?
Recent studies have shown that the average Canadian was able to save $11,530 each year working remotely during the pandemic. The main contributing cost saver what is the cost to commute including transit passes or fuel. More recently we are seeing less than 20% of Canadian employees are able to choose where they work from- house office or mix. Which means that many Canadians are again commuting to the office. As prices have increased across the board you may notice that you need to now budget more for your fuel or public transit. Public transit in Ontario is approximately $22.00 a day which on a remote hybrid model could cost $264 a month, with the added cost of gas to getting to the train station many Ontario commuters or averaging $450 a month just to get to the office. Will the actual costs will vary depending on your province and your means of transportation the message remains the same this is one of many costs that have gone up recently. While there is not much you can do about these increasing prices, you can consider carpooling and ridesharing as viable options. You may consider talking to your employer about the additional costs there may be spending accounts that can be allocated towards parking or transit passes call mom or you may be able to negotiate how many days a week you are needed in the office depending on the scope of your job.
The dreaded food costs increases are unavoidable no matter where you work. However you may find yourself more likely to prepare lunch at home as a means of stepping away from your work versus how often YouTube shoes to eat fast food or takeout options while working in the office. Don't forget about your daily trip to the coffee shop with coworkers that you likely avoid when working from your Home Office. Depending on the hour's and your commute you may find yourself too tired at the end of the day to cook dinner and find yourself ordering in or grabbing something from the drive through. To look at some simple math if you were to work in the office five days a week, you might find yourself paying $5 a day for coffee, $15 a day on lunch and up to $30 a day on ordering takeout dinner. Over the course of one year that's over $7000 spent on take out items. If you were to compare that to the cost of buying groceries and preparing your own meals you may be surprised at how much you could be saving by just making it yourself. While we know it's not always an option to splurge on take out- lets be honest sometimes take out is a necessary choice. Is important to weigh what is valuable to you and the costs may be worth the time you save- only you get to decide your priorities.
The cost of childcare. Child care has been a long discussed expense which varies based on where you live. While some provinces have implemented Childs care reduction including $10 a day child care for those who have inquired many have been placed on waiting lists. Current childcare costs for an infant can be as low as $738 in Prince Edward Island or up to $1986 in Ontario. Many provinces average $950 a month for an infant. Post pandemic many private child care facilities were forced to close with caregivers finding out of the house employment. This has led to a shortage in many cities across Canada for affordable childcare. This is a struggle that many Canadian families are experiencing on top of the costs associated with safe child care.
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Tick tock. We've all heard the saying time is money but have you ever stopped to think how much your time is worth? For someone making $55,000 A year would value their hourly time at $26.44. meaning if they spend an hour going to and from work each day five days a week will clock in $13,748 in commute time every year.
So what options do I have? We suggest talking to your employer about the return to office policy you may be granted the ability to work from home have on a hybrid schedule or granted more flexibility with the days that you choose to come in. Perhaps your job can be done in the office on weekends or when your children are in school so that you can avoid additional childcare costs.
Talk to your coworkers you may be surprised to know that you are not the only one in this situation. You may be able to set up with coworkers who work in a similar area and have a similar schedule to yours. If carpooling isn't an option they may know of close to the office cheaper lots that can save you money with early bird rates and special promotions. Just by opening up you'll learn all the things you never knew that you never knew. your coworkers might be able to keep you on track to reduce your eating out costs as well.
You may think about meal kit options to help reduce the cost of groceries and discourage you from running out to grab lunch each day. We understand the struggle with affordable groceries and you may need to consider spending extra time meal planning prior to your return to the office.
If you're finding you are unable to reduce your costs of traveling to the office you will need to find money in your budget elsewhere to reallocate to these additional expenses. This may mean slashing your entertainment budget monthly subscriptions, or reducing your utility bills in order to readjust for this change. Remember your budget is a living document that means anytime an unexpected expense comes up you'll need to change your budget somewhere else to cover for those costs. You don't want to be going into debt just for going into the office.
At the end of the day if you are finding that all of your expenses are overwhelming and you are unable to stay on top of the added items know that you are not alone. Many Canadians have had to alter their lifestyles, their careers common in their everyday activities to re calibrate from added debt. You do not need to struggle with crushing debt as there are debt relief programs available to Canadians. Reaching out to a licensed insolvency trustee today will empower you with the knowledge you need to make an educated decision for your own financial future. There's no shame in asking for help and all consultations with a Bromwich+Smith debt relief specialist are confidential with no obligations.
Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1-888-936-2829, or request a call back at contact us page. We want to see you flourish!