After spending the last two years working remotely, many workers are heading back to the office for in-person workdays again. In fact, according to the World Trend Index Survey, 50% of leaders say their company already requires or plans to require, full-time in-person work in the year ahead.

The budget impact

Working from home has its pros and cons, but one thing in the plus column is saving money. The average commuter in the United States spends $8,466 and about 19% of their annual income on their commute every year, according to an analysis by Clever Real Estate. And depending on where you live and how inflation is affecting your area, those costs could climb even higher. 

It's important to adjust to these expenses. 

Determine your commuting expenses

If it's been a long time since you bought a monthly subway ticket or paid daily tolls, you might not remember what you used to spend. During your first weeks, keep track of all the related expenses of commuting (even the less obvious ones), so you can budget accordingly. Some things to factor in:

• Gas, tolls, or public transportation: According to the May 2022 BLS Consumer Price Index Summary, the price of gasoline continues an upward trajectory. So if you’re driving to work, having to fill up more often can be a real budget buster. If you’re taking a commuter bus or train, that’s a more predictable expense that you can factor in.
• Cab costs: Uber prices have increased as well, with the rideshare company adding a surcharge of up to $0.55 on each Uber trip to offset rising gas prices. Keep this in mind if you rely on rideshare companies for transportation when working late or meeting coworkers for Happy Hour.
• Hiring a dog walker for your pandemic puppy: Barkly Pets, which matches pet owners with service providers, reports an average cost of $18 per 30-minute walk. If you need someone to walk your dog a few times per week, budget accordingly.
• Daycare for your children: If you’ve been able to cut back on daycare costs because of remote work, you’ve been saving quite a bit. A LendingTree study found that American workers spend an average of between 17% and 20% of their average yearly wages on child care for their kids younger than five years old. For older kids, you may pay a bit less for school aftercare, but it still has a budget impact.
• Buying work clothes and "outside gear" that you haven't needed in a long time: This cost varies depending on the wardrobe and items you have on hand, but it’s likely that you’re going to want at least a couple of new things. For instance, when was the last time you needed a pair of dress shoes or a blazer? And depending on your office dress code, don’t forget to add in possible dry-cleaning costs.

Once you track these expenses, you’ll be able to estimate a new line-item amount to include in your monthly budget. From there, you can determine whether you need to trim your other spending categories to account for these new commuting costs. 

Tips to save on commuting 

Once you’ve assessed what heading back to the office costs, try these strategies to help stretch your commuting budget.

• Negotiate with your boss. See if you can retain the option to work from home one to two days per week. Many companies are allowing their employees to keep a hybrid schedule rather than require a full in-person return. This can help keep the costs more manageable. 
• Ask about commuter benefits. Some companies might offer a pretax transportation account, so you can set aside money from your paycheck to go toward transit and parking. This provides you with a tax-saving advantage.
• Carpool. See if you have fellow coworkers or family members who might be interested in sharing rides, even if it’s just a couple of times per week.
• Look into gas discount programs. Some gas stations have loyalty programs or partnerships with other retailers that give you cents off at the pump. Sign up and save because every little bit helps.
• Consider credit cards that reward you for commuting. Some cards give bonus points or cashback on gas, tolls, and parking. If you can get rewarded for spending you have to do anyway, it could be worthwhile.
• Bring your own. Those lattes and lunches really take a toll on your wallet. Plan to treat yourself once in a while, but try to prep and pack most meals and take an insulated coffee mug to go.

Whenever you have a major life change that affects your finances, it's important to reassess your budget and make adjustments as needed. Going back to the office — especially in an environment where everything has gotten more expensive — is one of those times. By planning ahead, your financial transition back to the office will go much more smoothly.