One of the biggest benefits of working from home is the amount of money you can save doing so. Of course, there are other benefits, such as time savings and having the flexibility to take care of your children, if necessary. Not to mention you can wear whatever you want, however, from my own personal experience I would recommend you get dressed, even if it is in casual clothes as I find it hard to be motivated to work in my pajamas!
How much, can working from home really save you? What you end up saving from working at home will depend on where you begin and will differ from person to person. For example, if you have never owned a vehicle then you won’t have savings from not driving a vehicle to and from work and so on.
It should be obvious that working from home can potentially save you some money. There is always the chance, however, that you can spend more money from working at home. It’s easy to fall into bad habits and drift off doing something else that could end up costing you more money, like shopping on Amazon for instance. In this article, we will discuss how working from home can save you money and potentially how much.
So, if you’re ready to learn and hop on the money saving train, then let’s get started!
Is it Cheaper to Work from Home?
Before discussing how much you could potentially save if you chose to work from home, let’s touch on if it is in fact cheaper to stay home. Regardless of what you might think, it still costs money to stay home. How so, you might ask? I will list some ways it might cost you more working from home and then in the next section, we can discuss savings.
- Not a monetary point but working from home can cause loneliness, inability to stay focused which is a big one. If you get off track every day, your productivity lowers and you are not making as much money as you might need to. Setting a daily schedule and routine, not only for your work but personal hygiene and exercise, are important to have success. Being an introvert myself, I have no problem here and I find it exciting to have my days planned out at home and productivity is as high as it can be (or needs to be).
- If you are at home every day working, you will need lighting, heat or cooling, depending on the time of year and other sources of power to run office equipment.
- Being at home every day could cause you to eat more than if you were away every day for your 8 hours of work. Let’s face it, it’s very easy to fall into the trap of over-indulging, especially if you are not hyper focused on the task at hand. Setting up times to eat, just like you would away from home, is the best way to deal with this.
- Online shopping can be a problem nowadays, and from experience, I know it is a slippery slope. Amazon is just a click away. Being at home means it’s easier for your mind to drift off to things you think you need that can end up costing you more money in the long run. Stay on track, stay focused and put away your cell phone when you are supposed to be working.
- Purchasing office equipment could cost you more however, if you can get by with a laptop and the kitchen table, then maybe it’s not an issue. If you are meeting clients though, you will want to have a professional setup with chairs and tables. Lamps and pictures make for a good setting and don’t forget the cost of maintaining your space.
How Much am I Saving if I Work from Home?
Now to the good stuff! The amount of money you save from working at home will differ from person to person. Everyone’s situation is different, and we all have different material items and responsibilities in our lives. I can only give you estimates and ideas, based on my own references although, it should give you an idea of what kind of savings are possible. Below is a list of items to consider with what I would expect to save from working at home.
Savings from Not Driving to Work
If you drive a vehicle, you know the cost of gasoline is not cheap. Every week I must fill up my truck, which costs me anywhere from $50 to $75, depending on how much extracurricular driving I am doing. Regardless, that is a lot of money every month on just gasoline. On top of that, if you were able to cut your vehicle out completely, you would also save money on vehicle insurance and depending on where you live that could amount to thousands a year. Unless you have a newer vehicle, you will most likely run into the odd mechanics bill for random things that go wrong with the vehicle. Also, the less you drive, the less often you would need oil changes are tire rotations which is another saving.
- Just cutting back or getting rid of a vehicle could potentially save you anywhere from $200 a month to $1500 a month, of course, depending on where you live and what your insurance costs you.
Stop Taking a Cab to Work
Surprisingly, some people take a taxi every day. That just blows my mind because I know how expensive they are. Even if you opt for an Uber, chances are you are spending $30 to $100 per day just on getting back and forth to work. That is a huge waste of money, in my opinion. If you are doing this, then working from home would obviously save you thousands a month.
- You could even save money if you stopped using a taxi and purchased a vehicle. I know sometimes parking is an issue but there is always a way to cut that cost down. This article, however, is about working from home. So, if you worked from home that means you are saving thousands a month. Wow, I think this one is a no brainer!
Save Money by Not Taking the Bus
Other means of transportation include taking a bus or subway train. These options are more affordable than cabbing it every day however, they do cost money. Staying at home to work, instead of jumping on a bus or train, means you could save anywhere from $50 and up each month.
- That might not sound like a lot of money, but for some people, if you add that up over a year, it equals a month’s rent or mortgage payment. How would you like to have a month where it feels like you got to skip a mortgage payment? My hand is in the air!
Save Money Working at Home by Not Having to Use a Daycare
This is a no-brainer in my mind and one of the highest expenses for parents, second only to a mortgage, that is. If you have more than one child, the price you pay for daycare could be even higher than your paycheck of possibly a mortgage payment! If you can somehow have your children at home while working, you will save so much money!
- I know you are thinking, well, if you have children at home, how do you work? That’s up to you. You need to figure out a way to make it happen. One idea I have is to have a family member help-out, whether it is someone from your home or maybe grandma or grandpa can come over and watch the kids. You would be amazed how much family really does want to help, especially if they have the time. Afterall, l that’s what life is all about right? Family.
- If you can’t watch your children and work and family can’t come over to help, then consider hiring a babysitter to watch the kids while you work. Yes, it will cost you money but it’s not going to be anywhere near what you would spend on a daycare.
- A fulltime daycare, in my area, costs anywhere from $800 to $1,200 per month for one child. I imagine in much larger centers, such as New York, you would pay much more.
- Again, this is like paying another mortgage payment. Think about how much further ahead you would be if you could stop paying a daycare.
- Maybe one person in your house has an income of around $1,200 per month. If this is the case, then is it worth it for that person to be working? They could be staying home taking care of the children so you can work from home. It’s a win-win situation!
Save Money Not Having to Purchase Clothing
- I am not saying you should sit around with nothing on. The fact is
that when you work outside of the home, you need to dress accordingly.
Shoes, pants, shirts, suit it all adds up. It should go without saying
that if you are working from home, you won’t need a large selection of
clothes for the workplace.
- I also find that it’s not just about the initial cost of a pair of shoes for work. It’s the ‘wear and tear’ on those shoes or other pieces of clothing that ruins them, ultimately leading you to purchase new apparel. One pair of shoes should last more than a year. If you were working from home, your clothes would likely last much longer and you wouldn’t require as large a wardrobe.
- This could potentially save you $1,000 or more every single year. Again, that is another mortgage payment you are saving. Life would just seem to be easier if you didn’t have to go out shopping for clothes every couple of months.
Save Money Working at Home by Not Eating Meals Out Every Day
- This is an obvious one to most, yet some hardworking people out
there have the attitude that if they must go out to work, then they should
be able to treat themselves to a lunch or multiple coffee’s most days. I
don’t disagree that working day after day should provide some sort of
reward to you and treating yourself to a lunch on payday is not a bad
thing.
- It adds up quickly, though. If you were to only purchase one coffee in the morning (costing between $3 and $5 each) and let’s go with one reasonably priced lunch per week at around $20. At the low end, you are looking at $35 a week or $140 a month. Over a year that is $1,680, which again is a mortgage payment for most people.
- That’s at the low end, remember! Some people have a couple coffees per day and multiple lunches and suppers, adding up significantly over time.
- I think it’s safe to say that this alone will save you quite a bit of money while working from home. For the $35 spent on food and/or beverages, you could purchase enough coffee to last you a whole month at home!
Sick Time Savings
- Being sick costs you money, even if you have excellent health care.
Most minor medications are not covered by health care. You will have to
pay for those medications out of pocket.
- Working at home means you have less physical contact with other humans, which means less chances of you getting sick.
- Being sick also cuts into productivity. Stay home, stay healthy and save a few dollars in the process.
This list of ways you will save money by working at home is not all inclusive as there could be other ways you are saving money being at home.
Related Questions
How Does Working from Home Save Companies Money?
At the end of the day, if an employer accommodates less employees in the workplace, the company saves money. Think about things like power, toilet paper, water, heat and so on. There could also be a parking expense to the employer among other things that they get to save on, if you work from home.
Is Working from Home Worth it?
The fact that you will save money when working from home is one reason doing so is worth it. Another reason is for a better work/life balance. As important as it is to have a job and an income coming in to pay the bills and your lifestyle, a large majority of people rate work/life balance very high in priority. So do not discount the emotional and mental benefits of working from home.