Looking to work remotely for the foreseeable future? Consider a few money moves to maximize your income. Our financial guru Sheneya Wilson, a Certified Public Accountant and founder of Fola Financial, reveals four things to do when working from home (or abroad) to maximize your financial position:
Create more than one stream of income.
The best financial move one can make is maximizing their talents and skills to create more than one stream of income. Now that people have the ability to work from home, they can also work on their dreams and set themselves up to be stronger financially. Life is short and we need to remember that we can’t pass our jobs down to our children, but we can pass down assets and businesses.
Take advantage of tax deductions on any at-home office costs for your side hustle.
Tax law benefits those who own businesses and/or real estate the most, so there are many tax breaks and incentives for individuals who fit into one of those categories. Individuals who operate a business from their home can for sure take advantage of the many home office deductions available, which include rent, utilities, maintenance, etc. Purchasing items necessary to have at home to get the job done are expenses that your company can reimburse you for. Additionally, any supplies and software needed to maintain your home office are tax deductible.
If you’re still working for a company, ask them to help offset the costs of work expenses.
Unfortunately for employees, only their employers can deduct these expenses under the new tax code. This is a good time for remote employees to negotiate additional compensation to help build a comfortable home office to work from. Some employers have already begun giving out stipends for the cause.
Continue to maximize additional company benefits:
For those who are not quite ready to take the entrepreneurial leap, it is important to still get set up with a good financial plan, which would include saving for retirement while maximizing that employer match if offered, and investing in a Whole Life insurance policy.