You could be saving nearly $7k per year by working from home.
I’ve been working from home for seven years now, and I’ve discovered that there’s a multitude of savings to be had by not going out to work.
If your employer asked you to work from home over the past two months, then you’re probably now quite familiar with comfy activewear, convenience and flexible hours.
So many companies now realise the benefits of employees working from home – enormous savings on hefty CBD rents, for instance. But you, too, could make some huge savings by working from home.
Here are some of the areas you’ll make significant savings by working remotely:
Now that many of us are “teleworking” – and running our meetings via Zoom – we’ve settled into a new normal when it comes to our work attire. All we need is something formal-ish for the top and anything-goes attire on the bottom.
Let’s face it; work clothes are expensive. I estimate my annual savings on business wear to be around $1000, probably more.
Your tax deductions due to non-commuting are probably much more than commuting and working out of an office.
Your company may have paid to set you up in a home office. However, there’ll still be ongoing expenses such as the internet, mobile phone and extra utility usage you’ll have to cover. And of course, you can claim them.
Make sure you keep detailed records though and accurately apportion what’s private versus professional usage.
These tax breaks should net you probably another $800 a year.
Lunch at home.
Okay, so if it weren’t for lockdown, you may well still take a break from the home office by going to the cafe, but I’d hazard a guess you’d buy lunch a whole lot less.
It’s always much easier to just grab something from the kitchen and keep working, and I reckon I’ve saved thousands a year with this habit.
If your habit has been to pick up a $12 panini and drink every day when you’re at the office, you could be sitting on $2880 more in savings. Even more if you can’t live without your takeaway coffee.
What’s your commute costing you?
Think about how much you were previously spending a year on public transport. Just $10 a day for 48 weeks adds to $2400 a year.
If you drive to work then petrol plus wear and tear is likely costing you a whole lot more. $100 a week to commute, at least. That doesn’t even factor in parking.
Last time I worked a 9 – 5.30 corporate job I was driving an hour each way to work and my chiropractor bills were through the roof. My home-work commute in Sydney cost me around $2000 a year.
Time is money
What price do you put on your time? – The time you don’t have to spend in a car, in traffic or on public transport.
There’s a substantial unexpected advantage in working from home: When you get to each weekend, you have more money left in the bank. But you also have increased motivation to get out and about.
So, combine all these stay-at-home savings, and what do you get?
A much fatter wallet or bank account, that’s for sure—around $7000 in after-tax dollars by my figures.
So, if your boss gives you an option to work from home, consider it carefully. You may well save yourself a tonne of money.