Can Remote Work Pay Off for You?

6 min read
Man sitting on couch with laptop

Working from home has evolved from a necessary response to a public health crisis into a potentially permanent fixture in the corporate world. Even as many employers are encouraging (if not, demanding) a full return to office, many workers also are seriously evaluating if they ever want to go back at all.

What began as a year of adjustment and uncertainty, working remotely has become not only commonplace, but very comfortable. And it's no wonder. The benefits are simply hard to ignore, particularly when it comes to taking care of work-life balance, as well as your mental and financial health. But before you donate your suits and stock up on sweatpants, it's important to look at some of the perks and drawbacks to understand whether or not remote work can pay off for you. 

Perks of Remote Work

When we think about remote work, one of the first things that comes to mind is flexibility. Whether that’s folding laundry between tasks, catching a lunch-time yoga class, or taking Zoom calls from a distant mountain-top (thank you, Internet), it’s never been easier to create your own schedule. The best part? This newfound flexibility may save workers money, too. 

It makes sense. If you’re a full-time, in-office employee, think about what you typically spend on commuting expenses, professional attire, lunches out, coffee breaks, and after-work happy hours. Even if your company covers lunches or offers commuter benefits, those perks generally don’t compare with the money you can save when you work from home. Depending on where you live and how long your daily commute, you could save upwards of $4,600 a year. See how much you're saving with this calculator

That’s a lot of money. And when put to good use, it can make you even more money. For example, you can increase your monthly contributions to your retirement account, or put those extra funds into a high-yield savings account. Or, you can use your newfound savings to pay down debt, saving you on interest in the long run. 

Now consider the mental health benefits. Imagine if you could reduce your time spent in bumper-to-bumper traffic by nearly 100%? In some metro areas, commuting can take more than an hour—and that’s just one leg of the trip. Eliminating this daily activity is not only a big time-saver, but an enviable stress-reliever. You could spend those unlocked hours improving your quality of life. In other words, you’d have more time for exercise, sleep, hobbies, and family. If (like us) you believe “time is money,” doing away with daily travel to and from the office can pay off in more ways than you can imagine.

Plus, you might be surprised to learn that remote work actually enhances productivity, debunking the theory that employees get less done when they’re away from the office. 

Working remotely also creates geographically boundless opportunities. Previously, employees working in expensive cities like New York or San Francisco were hard-pressed to find affordable housing within a reasonable distance from the office. The rise of virtual work now enables employees to choose where (and how) they want to live. That could be closer to family, into a larger home in a less expensive suburb, or to a farming or mountain community further afield. Being able to leave high-cost rentals for places with a lower cost of living has enabled remote workers to not only save money, but to afford a home for the first time in their lives.

And it turns out, when you’re able to save money—and liberate your time to do the things you enjoy—your mental well-being and outlook on life are likely to change for the better. 

Downsides of Remote Work

Of course, remote work isn’t for everyone, and downsides do exist.

First, check in with your employer and ask about any rules, policies, or expectations that come with remote work. For example, if you’re planning on moving, some companies may decrease your salary to match the market rate of your new location. This might be a lot less than what you're making now, wiping out any potential savings you were hoping to achieve with a move. Also, some employers are asking employees to go 1099 (become a contractor) if they move out of the area, pushing the tax and health care liability entirely on the worker. And some state tax restrictions could prevent you from relocating to certain states, so connect with your manager and HR department before making any sudden moves. 

While you could save money in the long run, be sure to consider all your upfront costs. For example, you may have to spend more than you expect to create a remote office. If your employer doesn’t offer reimbursements or a stipend for setting up a workspace, the initial output can eat into your budget.

From a social standpoint, working from home isn’t exactly a party. Virtual work may lead to less interaction and collaboration with peers and managers. This can lead to feelings of job insecurity, or that you need to be responsive to texts and calls at all hours to make coworkers back in the office understand that, yes, you are indeed "working." This can lead to mental burnout, which can affect both your health and your finances. 

Similarly, if you you know you thrive on daily office interactions (e.g., brainstorming in the conference room or lunches and coffee breaks with friends) you may find remote work isolating (and perhaps a little lonely). This might lead to anxiety or depression, and not worth upending everything just to save money on gas and parking. 

Distractions at home can also be an obstacle for remote workers. This became abundantly clear early in the pandemic, as hundreds of thousands of new remote employees found themselves working alongside partners, children, and roommates under less-than-ideal circumstances. On top of that, there’s another subtle downside of remote work that you might not anticipate: the inability to unplug. 

For some, commuting to and from an office provides a psychological boundary between work life and home life. Removing that boundary causes some to work longer hours and neglect their personal needs. Success as a remote worker requires continuous monitoring of your work-life balance to maintain equilibrium. 

How to Thrive as a Remote Worker

Ultimately, what you’re able to achieve as a remote worker comes down to discipline. This translates to creating an environment that is not only conducive to being productive, but that supports your daily tasks, and ensures lines of communication remain open. 

First, it’s critical to have a designated workspace. Everyone's home environment and personal preferences vary widely, so there’s no one-size-fits-all workstation. You have to find what works best for you (and whomever you may share your space with). If you don’t have a study or spare room, you may need to get creative.

“A few simple investments can make a huge difference,” says Corissa Peterson, a writer and hiring manager with Resume Genius. “This doesn’t mean that you have to spend thousands of dollars on a fancy new office set-up. There are plenty of affordable additions you can make: a lumbar back support cushion, an adjustable monitor stand, or even a height-adjustable standing desk.” 

Flexibility is key. In the same way you may have to negotiate your workspace with a housemate, collaborating with coworkers remotely can be more difficult than if you were working in the same office. If you live a time zone away from your primary office, for example, you may end up taking calls earlier or later in the day (or night) than you’d like. 

And when you’re separated from your team and company by screens, effective communication is paramount. Whatever mix of tools are available at your organization, make a point of getting to know your coworkers’ personal communication preferences (and let them know yours, too). The more empathy and understanding you have for your coworkers (and yourself) while working remotely, the better your communication will be. 

Finally, work within your company’s rules and policies. Discuss your needs with your manager to develop a structure that works for your role and the needs of your team. It may take some trial and error, and that’s normal. If your company values what you bring to the table, they’ll be willing to work with you to get it right. 

The Bottom Line

While it appears that remote work could be here to stay, whether it’s the right choice for you all depends. If your organization is moving to a remote or hybrid-work model, or you simply feel like you’re ready to make the switch in your next role, take time to consider the pros and cons of working away from an office. Evaluating your needs as well as the above factors will help ease the transition.

You May Also Like

Related Resource Center
Soft inquiries won’t impact your credit scores, and hard inquiries can hurt your scores slightly. Here's what you need to know.
Oct 9, 2023
6 min read
woman on mobile phone image
Having a money plan in place before you turn in your resignation can make the transition smoother. Learn ways to prepare your finances before you go.
Sep 4, 2023
5 min read
Young man relaxing in an orange hammock by a misty lake holding a cup of coffee, looking at laptop on his lap.
Take control of your money and personal wellbeing with tips to recognize burnout and restore your physical, financial, and emotional health.
Aug 7, 2023
6 min read
Woman in pink blazer sitting on ground with laptop in lap next to young girl looking at documents
With six in 10 U.S. consumers living paycheck to paycheck, could budgeting, saving, debt management, or side income be the antidote?
Jul 25, 2023
5 min read
Paycheck to Paycheck
Your credit score plays a role in nearly every financial move you make. Having a great credit score can save you hundreds (or thousands) of dollars a year through lower interest rates on your credit card accounts, personal loans, moving loans, car loans, or mortgage.
Jul 9, 2023
4 min read
Man in denim button up holding a phone, sitting at table smiling
Related Impact
From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.
Nov 13, 2022
2 min read
blog header stackit 765x430 v1-1
Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals.
Oct 2, 2022
5 min read
LendingClub Rewards Checking Nationally Certified as Trusted, Afforda
Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.
Apr 19, 2022
2 min read
Illustration of large number 4 and letter M made up of colorful, tiny illustrations of ethnically diverse people
In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 
Mar 6, 2022
less than a minute read
Blog-post
LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  
Jan 2, 2022
2 min read
Man in blue button up shirt and glasses smiling
Related FAQ's
We offer several ways for you to make your monthly auto loan payment, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date.
Nov 29, 2023
less than a minute read
LendingClub provides a year-end statement that summarizes your account activity, including how much interest you’ve earned and information regarding Notes tied to loans that have been charged off.
Jun 7, 2023
less than a minute read
After you submit your application, you'll get an email with instructions for confirming your email address.
Jun 7, 2023
less than a minute read
In some cases, we may need to confirm your employment before your application can be finalized. The fastest way to confirm your employment is to provide your work email address.
Jun 7, 2023
less than a minute read
To process your application, we may need to confirm your income matches what was on your application.
Jun 7, 2023
less than a minute read
Related Glossary
{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.
Sep 6, 2023
4 min read
{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 
Mar 21, 2023
4 min read
{noun} The total annual cost to borrow money, including fees, expressed as a percentage.
Mar 21, 2023
3 min read
A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.
Feb 7, 2023
3 min read
{noun} An interest rate that remains the same for a set time, usually for the life of the loan.
Feb 4, 2023
3 min read
Change Your Money, Change Your Life
Join our monthly newsletter for tools, tips, and insights to improve your financial health.
  

LendingClub Bank and its affiliates (collectively, "LendingClub") do not offer legal, financial, or other professional advice. The content on this page is for informational or advertising purposes only and is not a substitute for individualized professional advice. LendingClub is not affiliated with or making any representation as to the company(ies), services, and/or products referenced. LendingClub is not responsible for the content of third-party website(s), and links to those sites should not be viewed as an endorsement. By clicking links to third-party website(s), users are leaving LendingClub’s website. LendingClub does not represent any third party, including any website user, who enters into a transaction as a result of visiting a third-party website. Privacy and security policies of third-party websites may differ from those of the LendingClub website.

Savings are not guaranteed and depend upon various factors, including but not limited to interest rates, fees, and loan term length.

A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,854 for a term of 36 months, with an interest rate of 10.29% and a 6.00% origination fee of $1,191, for an APR of 14.60%. In this example, the borrower will receive $18,663 and will make 36 monthly payments of $643. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states. 

For Personal Loans, APR ranges from 9.57% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of July 11, 2023 and are subject to change without notice. 

Checking a rate through us generates a soft credit inquiry on a person’s credit report, which is visible only to that person. A hard credit inquiry, which is visible to that person and others, and which may affect that person’s credit score, only appears on the person’s credit report if and when a loan is issued to the person. Credit eligibility is not guaranteed. APR and other credit terms depend upon credit score and other key financing characteristics, including but not limited to the amount financed, loan term length, and credit usage and history.  

Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. ​Deposit accounts are subject to approval. Only deposit products are FDIC insured.

“LendingClub” and the “LC” symbol are trademarks of LendingClub Bank.

© 2023 LendingClub Bank. All rights reserved.