New York Workers Save Over $4,000 a Year by Not Going to the Office

What happened

Hybrid working models mean Manhattan workers are spending $12.4 billion less each year. "People have changed their lifestyle and their behavior," Michelle Meyer, North America chief economist at Mastercard Economics Institute told Bloomberg, who analyzed the data.

The Bloomberg investigation showed that the average worker in New York spends $4,661 less each year on meals, shopping, and entertainment because they're working about 30% fewer days in the office.

So what

It's one thing to save over $4,000 a year through remote work, and quite another to contemplate the impact returning to work could have on your bank account balance. Sure, office life in other parts of the country may not be as expensive as New York. All the same, as more and more employers push their staff to come back to in-person work, it's good to be conscious of the potential changes in your transport, childcare, and other costs.

Now what

Here are some extra expenses to factor into your budget if your company wants you to return to the office, as well as some ways you might minimize them.

• Coffee and lunches: Like many things, nipping out for a sandwich or salad is more expensive than it used to be. March 2022 data from Square shows that sandwiches were 14% more expensive than the year before, while wraps had increased by 18%. Dubbed "lunchflation," bringing food from home could save you $9 or $10 a day.
• Smart clothes: Joining video calls in your pajama bottoms is not an option when you're physically in the office. If you need new clothes for work, reduce costs by shopping in a thrift store or organizing a clothes swap with friends.
• Commuting costs: Cutting transport costs can be challenging, but it's not impossible. Look into car sharing, public transportation, or even biking to work. If you can't avoid driving, use a gas rewards credit card to get maximum rewards from the money you spend.
• Childcare: For some families, a transition back to the office means spending more money on childcare. And unfortunately, a study by Child Care Aware® of America showed the cost of childcare has outpaced inflation over the past three years. It says the national average price of child care was around $10,600 annually.

Depending on your situation, a return to the office won't necessarily be all bad. Not least because some people miss the collaboration and social aspects of working in person. And remote work does carry some extra costs too. For example, higher electricity bills and office furniture. But generally speaking, more in person days will translate to more costs and it's good to be ready for them.