Work From Home & Save

Working from home is estimated to save you $4,000 annually - here’s how.

For many Canadians this past year was an experiment in working from home. Few of us will forget March 2020, when we were asked to move to our home office and not come into the office. Zoom meetings with poorly lit desks, background noise, dogs barking, kids crying soon became normal, heck we even started to catch on that we could wear a nice shirt with comfy sweat pants all day!

Working from home saves money.

Commuting, gas, parking, lunches and new clothes were all now a thing of the past. Working from home also meant better house management with meal preparation and less last minute spending. With both parents at home the savings can really add up. As we venture into 2021, some offices will open, however many employees will elect to remain home for at least some of the work days.

These additional savings can be applied to the mortgage using your pre-payment privileges. Most mortgage contracts allow you to increase your monthly payment by 15-20% and do lump sum payments of 15-20% annually. Some contracts state lump sums can only be made on the anniversary date of your mortgage so check your contract.

Another great financial planning tip is to put the extra savings into your RSP and apply the refund you will get to the mortgage. Save for retirement and use refunds toward the mortgage, accelerating your mortgage payments. This is a win, win strategy if you have available RSP contribution room.