Flexible schedules and the ability to work virtually anywhere appeal to many people. For those who already live out of the city, being able to avoid a long commute into work every morning is appealing, and for those with young families, or individuals starting their career with little to hold them down, remote working tends to greater serve their needs than traditional office-based formats.

Regardless of your working set-up, it is still just as important to stay on top of your finances. Financial planners in Victoria are likely to recommend a slightly different strategic approach to managing your budget if you’re a freelancer, entrepreneur, or full-time employee assigned to regional locations. So it’s good to get up to scratch on what the key differences are.

Continue reading for advice while you navigate this newfound work-life balance, with our top financial management tips for regional and remote professionals.

Understanding Income Streams

Previously, most formal employment structures offered a pretty simple set-up. You arrived on time and received an hourly or annual salary at a negotiated level. You likely received payment via a check or direct deposit to your account weekly or bi-weekly.

It was a static commitment on both sides, and that was that. These days, things are considerably more dynamic and not at all guaranteed. Remote or hybrid working is becoming the norm, and regional businesses in Victoria are leading job growth.

Companies are increasingly more picky about whom they offer salaried roles. Reduced hours and part-time positions are widely offered to lessen their long-term commitments, plus costs from benefits programs.

But, to make up for this unfortunate fact, thanks to the internet, workers have new opportunities for both active and passive income sources with varying levels of time commitment. These roles often come in peaks and troughs, or may be seasonal. You’ll need to adjust spending and saving levels accordingly to satisfy bills and other expenses that don’t fluctuate month to month, including rent or transportation costs.

Holidays and seasonal events bring new opportunities to workers with specific skill sets and availability to meet demands. This means you can generate year-round revenue and stabilise your earnings by diversifying your interests and strategically planning your workload.

Regional Budgeting

Since the cost of living varies considerably based on your current locale, the traditional way of allocating your budget may need partial adjustments, especially if you’re travelling a lot or your assigned location changes quarterly or perhaps more frequently. Recognise that you might need to switch from a monthly to a rolling budget.

Prioritise your essential costs, such as housing, food, and utilities, before considering any excess spending. Then research prices in your current or upcoming region you’ll be working in to finalise your planned spending habits. Remember that as a flex-work or remote professional, regional cost of living adjustments are now a permanent fixture in your budgeting process.

Unfortunately, emergencies still apply to regional and remote workers, so remember to use savings goals to contribute to a financial safety net of at least six months' worth of living expenses and large unexpected costs such as car repairs, medical emergencies, or temporary job loss.

Automate this contribution to a dedicated savings account every time you receive income, and treat this as a non-negotiable commitment, such as your rent or groceries.

Consult with your financial advisor on ways to accrue interest on these funds through an individual retirement account, employee-sponsored 401k's, or self-employed retirement plans. Full-time employees should also inquire into and take full advantage of employer-matching contributions to their savings in these retirement accounts.

Tax Considerations

Significant benefits may be available as a remote or regional professional in many locales, especially when working out of home or classified as self-employed.

Even if you're employed with a company as a full-time employee, considerable deductions might apply for personal automobile mileage, fuel costs, airfare, lodging, and meals. Keep accurate records, including receipts for all things related to trips, supplies, and miscellaneous expenses.

Determine whether a home office deduction applies to your situation to deduct costs related to internet service, rent, and utilities. If your work locale changes frequently, be aware of the tax guidelines in each jurisdiction to stay abreast of new deduction opportunities and avoid unexpected bills and late payment penalties.

Planning for Irregular Income

Freelancers, consultants, and those in seasonal industries often face challenges in managing their finances due to their dynamic and frequently unpredictable income streams or outgoing costs.

The key is understanding and planning for these fluctuations by identifying your industry's busy and slow periods. During the peaks, allocate larger income chunks to either savings or debt payments. During slow times, focus on skill-building, marketing efforts, or seeking new income stream opportunities within previously overlooked niches.

Consider adding one or two passive income sources by creating for-sale digital assets – perhaps a video series or other educational venture such as an e-book or training module. These can be quickly completed in your spare time and set you up for tidy profits during the slower periods of your primary engagement.

High Tech Time Savers

Aside from your own bank's online platform for monitoring and managing accounts, remote professionals have numerous digital tools to choose from for effectively managing your personal income cash flows.

Budgeting apps for smartphones and tablets work to sync and summarise your bank, credit, and investment accounts all in one place. These handy helpers automatically categorise expenses, track excess spending, and assist with savings goals.

Self-employed freelancers will appreciate the ability to track mileage, capture receipts, and effortlessly generate expense reports after their frequent business-related trips, saving time and reducing the chance of errors during tax season. Using these helpers and tips, plus regular consultation with your personal financial advisor, you can build wealth and resilience against the uncertainties of regional and flexible work schedules.