Save money by working from home!
When the salaries of in-office and work-at-home jobs were compared recently, it was found that there tends to be a bit of pay cut when working from home. However, even though work-from-home jobs may pay a bit less, for people who are always wondering how to save money, working from home has numerous cost-savings associated with it.
You may wonder how to save money, but there are indeed several ways in which you will save money by working from home:
1. Save money on Gas
Today, everyone wants to know how to save gas. Fortunately, when working from home full-time, all costs associated with commuting are eliminated right away. Even if you use a bicycle or walking in order to commute work, bicycle maintenance costs will be reduced and fewer pairs of sneakers will have to be purchased. Approximately, over $1,000 can be saved on gas every year by working from home instead of commuting to a workplace.
2. Limited Childcare
Although childcare costs may not get completely eliminated by working from home, but the amount that is spent every month, especially the daycare costs, will certainly be reduced. The average amount that is charged by daycare centers is $125 per week. So, for two children in daycare, that means that at least $1,000 is spent every month on just daycare costs. A large fraction of that amount can be saved by working from home, since full-time childcare will not be needed because of the flexible work schedule.
3. Living Expenses
Dry cleaning and laundering are two major living expenses that are raised when working at a professional workplace. However, a professional wardrobe does not have to be maintained when working from home. On average, anywhere from $600 to $1,000 is spent by the average professional on dry cleaning, but these costs can be eliminated entirely by working from home. When at home, it will not matter what is being worn while working, so that living expenses can be kept rather low.
4. Small business tax deductions
There are quite a few small business tax deductions that can be claimed when working from home – depending which country and/or state you live in (Disclaimer: no tax advice, no financial advice, no legal advice). Deductions for business and maintenance expenses, home office space, office décor, and property taxes are included among these deductions. Even when working full-time from home as a telecommuter rather than a contractor or a freelancer, these deductions and expenses can still be claimed. Although these small business tax deductions may differ widely based on home office setup, according to an IRS estimate, a typical tax obligation can be lowered by $750 by working from home, which is a good tax break, isn’t it?
Working from home may have a bit of a lesser payout and some start up costs, but savings such as the ones above tend to defray most of those costs. Therefore, for those wondering how to save money, they should consider the opportunity of working from home.