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Jun 25, 2020

5 Ways Working From Home is Saving You Money

We can all use a bit of positivity right now and the silver lining can be hard to find at times. As a company that has been remote from the beginning, we know working from home is a great way to cut costs and save for other areas of your business that needs investing.


1) Gas: $9,120 Per Year

Probably the most obvious one is gas! Cutting out that drive to and from work can save you a ton each year. This does not include those trips to the client’s office or lunch breaks at your favorite cafe across town. 

Gas prices change drastically from one state to another, but the average Californian spends $1,150 on gas each month. Let’s assume ⅓ of that is for recreational use or essential travel, like groceries. That would result in $760 per month on gas or $9,120 per year.

 

2) Food & Coffee: $1,536 Per Year

Afternoon pick-me-ups and visits to your local sub-shop can add up. When you work from home you may be less likely to eat out or may realize you are a better barista than the one at your local Starbucks. Cooking your lunches can be a healthier option, help you save money, and even time from making those boxed lunches the night before.

Let’s say you order your lunch out twice a week, $10 each lunch. Then you pick up a coffee 3 times a week for $4. That is $32 a week, $128 a month, or $1,536 a year. While you may need to add coffee grounds and bread to your weekly shopping list more often, there is no doubt you will save money eating from home more often.

 

3) Professional Attire

Whether you need to upgrade heals or buy a new sports jacket for the product launch, professional attire each year can cost you when working in an office. If you are working from home, you may dress up from time to time but wearing your more expensive professional attire less often can save you money.

The average American family spends $1,700 on new clothes each year. This number decreases when special attire is not needed. Like business casual clothes, custom-fitted sports coats, leather shoes, or briefcases. 

 

4) Child Care: $6,000 Per Year

We know working from home does not mean you will never need child care nor does it make it easy to work and care for your child at the same time, but flexible working options can help create flexible child care options. 

The average American family spends about $500 per month on child care or $6,000 per year. By finding ways to work during naps or saving time by a reduced commute, you can save hundreds, if not thousands, every year.

 

5) Time: Priceless

We have already talked about how a cut-down commute will save you countless hours sitting in traffic. But remote workers know when you create an environment in your home that allows for some quiet work, your productivity will increase. As productivity increases, your time opens up.

Creating an environment where you can thrive at work is not always easy in an office. Some of us know we work best in the earliest hours of the morning, others are night owls that want to work when everyone has gone to bed. Some of us need absolute quiet and others want to rock out while their creativity flows. 

Office spaces do not always allow us to personalize our workspaces, but at home, you can create an environment where your productivity increases and thus, you save time.

Some of the most expensive parts of running a business have to do with working out of the home, but if you can work remotely you will find yourself saving time and money. 

 

Working from home is not the only way to save time and money, hiring an accountant can do that as well. If you are looking to outsource your books, set up your free consultation today.

 

 

Disclaimer:

This publication is designed to provide information on federal tax and accounting laws and/or regulations. It is presented with the understanding that the author is not rendering legal or accounting services.

This text is not intended to address every situation that arises or provide specific, strategic tax and/or accounting planning advice. This text should not be used solely to answer tax and/or accounting questions and you should consult additional sources of information, as needed, to determine the solution to tax and/or accounting questions.

This text has been prepared with due diligence. However, the possibility of mechanical or human error does exist and the author accepts no responsibility or liability regarding this material and its use. This text is not intended or written by the practitioner to be used and cannot be used by a taxpayer or tax return preparer, for the purpose of avoiding penalties that may be imposed.

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