5 Ways Working at Home Saves Money

The decision to work from home can be a difficult one.  There are many factors to consider when you are trying to decide if working from home is the right choice for you and your family.  You might think that in working from home you will be losing money.  But, working from home can actually save you money too.  Aside from the emotional benefits of being with your children you will enjoy financial benefits as well.  Here are 5 ways that working from home can save you money:

1.  ~Gas and other travel expenses~ 

You won’t have to spend a dime on cab fare, bus fare or gas for your car when you work from home.  There is no commute to and from work when your office is in your own home.  With the price of gas today you can stand to save a lot of money in this area.  You can also save money on oil changes and other vehicle expenses.

2. ~Child Care~

Child care is the expense that can eat up the largest chunk of your income if you work outside the home.  The National Association of Child Care Resource and Referral Agencies conducted a study concerning the cost of child care throughout the United States in 2010.   This study found that you could spend anywhere from $4,000 to over $13,000 per child per year for child care.  The average day care center fees for an infant in 2010 were much higher than the average cost of a family’s year’s worth of food in any part of the United States.  If you enroll two children of any age into a child care facility it will cost you the about the same amount per month as the cost of renting a home.  Two children in child care also meets or exceeds the cost of an average, monthly, mortgage payment anywhere in the U.S.

3. ~Food~

If you leave the house for 8-12 hours per day to work you are probably going to get hungry sometime during the day.  You will have to spend some money on lunch, drinks and snacks throughout the workday.  Even if you don’t go out to lunch you can still spend a lot of money in your company’s vending machines.  If you purchase just three water bottles a day from your workplace vending machine you could end up spending almost $25.00 a week on water alone.  You can also pack your lunch; but, this doesn’t go without cost either.  You will need to buy sandwich baggies, plastic containers, a cooler or lunch box and snacks or drinks to pack.

4. ~Clothing~

If you are staying home to work you will have no need to dress up.  You won’t have to buy business clothing such as suits, skirts, pantyhose, heels and dress shirts.  You can also save on your dry-cleaning bill.  If you have a job in a dirtier environment your clothes could get ruined and need replacing often.  You might also need to purchase special shoes, hats, gloves, safety glasses or tools for a job outside the home as well.

5. ~Taxes~

You can also save on your taxes each year by working from home.  If you designate a room or section of your house as your home office, you can get tax deductions for portions of your property tax, utilities and other expenses related to your home office room.  If you qualify for the Home Office Deduction there are direct and indirect expenses you can deduct.  Direct expenses are things like furniture or new paint for the walls of the actual room the office is in.  Indirect expenses are related to the rest of the building the office room is inside of.  Indirect expenses are only partially deductible. 

You might think you can earn more money working at a job outside of the home.  But, when you subtract all of the expenses that leaving the house five days a week brings are you really making that much?  You can make money from home without having all of those extra expenses of gas, food, child care and clothing.  You can even save on your taxes each year.  When you add in the bonus of being there for you kids whenever they need you, the rewards of working from home are priceless. 

Sources:

http://www.naccrra.org/publications/naccrra-publications/parents-and-the-high-cost-of-child-care.php

http://workathomemoms.about.com/od/taxes/a/homeofficeexpen.htm