The wonders of information technology have opened up new ways of working. This has given rise to a new concept known as ‘Remote Workers’. You can be sipping your Margarita on a beach in the south of France, and yet be handling work from clients based in New York.
All you need is a Laptop or a Desktop, a strong internet connection, some commitment and a hunger to be successful. Many young professionals are option for remote work as it has a number of advantages.
While remote working can be an attractive proposition, there are some personal finance challenges attached to the same. In this article, a leading financial advisory firm, Carina Advisors, helps shed some light on the financial problems of remote working.
If you are a remote worker, or know someone who is, this article will be of invaluable help to both of you.
Carina Advisors on the top 5 Personal Finance Challenges faced by Remote Workers-
1. Not being able to Budget their Incomes and Expenditures
Remote workers are not working under normal situations. They are away from their homes, from a normal routine pattern. As such, one of the major challenges they face is budgeting. As they keep moving between hotels, guesthouses and rented accommodations, budgeting becomes a serious issue.
2. Remote Workers are unable to Invest in Savings
While you can get some amount of regularity when it comes to income, the same cannot be said about your expenditures. Remote workers are unable to invest in savings. As they are unaware of their budgets and expenditures, they always end up exhausting their personal finances. This leads to very little or no savings.
3. Unnecessary Expenditures drain Personal Finances
Remote working means being in new places, cities and towns. Some remote workers travel to three or more countries every year. This results in eating out, excitement, partying, and pubbing and so on. These are some expenditures, which you would normally not do, if you were staying in a specific city for a long time.
4. Increased Credit Card Usage
When you are working remotely, there are a number of problems. You will have to change the currency, open a new bank account, etc. This is why most remote workers prefer using Credit Cards while they are on projects. This is not a good habit to develop. You should look for convenience. Credit card usage can lead to high interests and foster a debt cycle.
5. Not having access to a Financial Advisor
If you know you are travelling all the time, when will you get the time to seek some financial advice? People prefer financial advisors when they can talk to them or meet them face-to-face. This takes a toll on their investment plans, savings, debt clearances, and other personal finance plans. It is important that remote workers have access to their financial advisors even on calls or Skype.
The advancements in technology have made remote working possible. However, as professionals we should not only be attracted to the benefits of remote working. As a professional, if you are not managing your personal finances while working remotely, you are setting the ground for a bad financial future.
In this article, Carina Advisors points out the top five personal finance challenges faced by remote working employees. By paying attention to this article, you can identify and relate to the kind of personal finance problems you might be going through.
If you wish to know more about personal finance or remote working, mention your questions in the comments section below.
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