If you're like millions of other Americans, you might be facing a tighter budget right now. That can be scary, but the good news is that there are things you can do to help you ride things out. And you might just find you like your new cost saving measures after the pandemic is over!
Not Commuting? Get Rid Of a Car
Cars are one of the largest expenses on the average American family. The average monthly cost of a car loan was $523 in the first quarter of 2018--and that doesn't include other costs like gas, repairs, and maintenance. In total, having a car can cost almost $9000 per year, according to NerdWallet. If you're driving less right now without your daily commute, consider getting rid of a car.
If you have two cars in the family, consider if it might be possible to downsize to one. If one member of the family could take another to work or a transit station, or if you have public transit in walking distance, even after quarantine it's possible you won't need a car to commute to work. You might be able to go completely carless!
You can check how easy it is for you to achieve your daily errands on foot, transit and bicycle using WalkScore, and see if a car free lifestyle would work for you.
The biggest suggestion from financial experts for people trying to ride out the COVID crisis is to find one large expense that you can cut out of your budget--this is generally more sustainable than many small expenses. Getting rid of a car is a great way to remove a massive strain on your finances in one move.
Ending Your Commute Could Be Easier on the Wallet
Even if your usual commute isn't possible without a car, it's possible you won't have to return to the office at all. More and more workplaces are considering remote work arrangements post-pandemic, because of their convenience, economy and flexibility. Just this week, Google and Facebook extended their work from home policies until the end of 2020, and other companies are following suit.
Commuting can cost upwards of $5000 per year in some places in the US. Consider asking your employer whether they would allow you to continue working from home, even if your state is opening up.
Research has shown that working from home can actually be more productive than working in an office, so there are benefits for your employer too. On average, WFH employees work about 1.4 more days per week than their office counterparts.
Other Financial Perks of WFH
The costs of working outside your home aren't limited to commute alone. Whether it's office attire, lunch, or your caffeine budget, working in an office is expensive.
According to a Visa survey, the average American worker spends nearly $3000 a year on lunch alone. Of course, you'll still need meals if you extend your WFH past quarantine, but eating at home is much cheaper. And brewing your coffee at home will save you about $1000 a year.
If you can dress more casually when you're working from home (especially if you don't have video calls) you'll save money there too--up to $1700 dollars a year.
If you're looking for other tips and tricks for maintaining your financial health during the COVID crisis, you can see all of our personal finance content here.
