Many employees had their first taste of remote work when their companies asked them to work from home. They found out that remote work allowed them to reduce their expenses and save money.
But millions of Americans were already working from home even before the pandemic started. And these remote workers already knew about the savings since they didn’t have to spend on things that were necessary if you work in an office.
Here are some expenses that will go down when you start working from home.
Transportation Expenses
The first expense that will go down or even become eliminated is your transportation cost. Since you don’t need to go to the office, the farthest you’ll probably travel is from your bedroom on the second floor of the house to your first-floor office.
You can save thousands of dollars each year depending on the distance between your home and the office. The savings will also depend if you use your car or use public transportation. When you use your car, you can save on gasoline expenses, which can increase if you’re stuck in traffic while going to work.
You’ll also save on the cost of maintaining your car. When you use your car for your everyday commute, your maintenance costs will go up. The cost includes changing the oil, rotating the tires, and other maintenance tasks you need to keep your car in tiptop shape. And the expense will also depend on the type of model of the car you are using. But if you’re working from home, you’ll probably bring the car in for maintenance once a year. The main reason for this is because you will not reach the minimum mileage for a mechanic to check the car. Additionally, the wear and tear on the car are less if you only use it on weekends.
Additionally, you will also save on car insurance if you do not bring the car out often. Insurance companies may offer rebates and discounts from time to time. But if you’re a remote worker, you’ll see that you’ll have a low insurance rate since you do not bring the car out every day.
If you take public transportation, you’ll save on monthly fares if you work from the house. You also will not have to deal with trying to catch the morning train to work. Additionally, you are not even sure if you’re safe from the virus if you’re taking public transportation. This comes even if the government required the use of masks in public transportation.
Clothing Expenses
Working from home means you do not need to wear “work clothes.” This is particularly true among freelancers who may not even see their clients every day. They will likely see them during meetings. In these instances, the freelancer can wear a nice top since that’s the only thing the client can see.
When you work from home, you do not need to buy a couple of sets of work clothes. The savings can reach up to nearly $2,000 each year. The figure also includes keeping the clothing clean. The clothing expenses also depend on your industry. Some industries require employees to wear two-piece suits and a good pair of pants. So, you’ll save a good amount of money if you work from home.
Food and Drink Expenses
Another expense you have to consider is your food and drinks at the office. You’ll likely eat out every day for lunch. While individual expenses may not look substantial, they are significant if you add them up for a month.
Food and drink expenses can run from a couple of hundred dollars to thousands of dollars each year. And this doesn’t include yet any after-office get-togethers with the team at a local bar. So, you’ll end up spending a good amount of money on food and drinks when you work at the office.
On the other hand, your daily food and drink expenses are lower when you work from home. You can always fix yourself something to eat in your kitchen. Most of your food and drink expenses will be a part of your grocery costs each week, which is considerably lower compared to eating out every day.
Tax Breaks
You can also get some tax breaks you are self-employed or a freelancer who is working from home. These tax breaks include deductions for your home office, pass-through deductions, equipment depreciation, healthcare expenses, and retirement contributions. But since working on taxes is complicated, you can look for a reliable capital allowance company to help you work on them.
Working from home offers a lot of benefits for workers and one of these benefits is the savings you get when you reduce or eliminate some expenses when you start working from home.
