When we start thinking about working from home, we go through many pros and cons. Money is often on that pro list. We’ll save money not having to commute. We’ll save money by not having to dress smartly for work or eat in expensive restaurants. You will also save money from not having to rent office space, or pay for staffing and other startup costs. These pros are some of the reasons that nearly 70% of people across the globe work from home at least some of the time.
Home-based business owners work flexibly, and never have to worry about commuting. They have freedom and control over their business and the chance to make something for themselves. These entrepreneurs can create a successful and profitable business. It’s a tough choice to make, but more and more people every year are deciding to leave traditional employment to work at home.
That’s when things start to change. Yes, of course, there are savings. But, perhaps not as many as you might think. You might spend money marketing your business. You’ll probably still want to have some work clothes for meetings. You may even still need to travel sometimes. Your utility bills are bound to be higher, clients may need to be entertained, not to mention the cost of setting up your home office. With this said, there are still plenty of ways that you can save money. Let’s take a look at some of them below:
Stand Up
Many people notice a pretty dramatic weight gain when they first start working from home. They go from walking around at work all day, perhaps even spending most of their days on their feet, to sitting on the sofa, working in their sweats with the TV on in the background and a pack of cookies open next to them. Even people that had sit down jobs before moved more and snacked less when they were around other people. It’s really no surprise to find that the pounds quickly start to pile on.
When this happens the first thing that most people do is start looking at frightfully expensive gym memberships. Thinking that this will be a magical solution. They never actually go, because they have no free time, and it doesn’t work at all.
Instead, move. If you want to spend money, invest in an activity tracker to monitor your movements and remind you to get up. Try to get up and do some steps around the house every hour and go for a long walk when you can. Even working standing up instead of sitting down could burn an extra 50 calories an hour.
Keep Office Decor Simple
When you first start working from home, it’s all too easy to get carried away with ideas for your home office. Even if this home office is in reality just a desk at the back of an existing room, you can find that you want it all. You want an expensive desk and chair. You want to paint the walls and buy the best computer. You need accessories, plants, and wall art to improve your mood. But, do you need it? Will an expensive home office actually help you to work? Will it in any way be good for your business?
It’s a good idea to have an office space. But, keep it simple. Light walls, a comfortable and supportive chair, and some basic supplies are all that you need to work productively and happily. If you want to host client meetings at home, it’s also a good idea to have a neat area, that’s kept clean and tidy, where you can sit down together. This can save you money not having to take them out.
Haggle
In business, we haggle. We haggle for the best deals with suppliers and even rent for our office. At home, we aren’t as good at it. We feel pushy when we ask for something better. Why is this? When you work at home, you need to learn how to haggle at home. Look at all of your suppliers, not just those specific to your business, and see if you could either get a better deal elsewhere or reduce your costs with your current supplier.
Never stick with a supplier or provider out of loyalty, or because you’ve had a good deal with them before, always look at other options before committing to an agreement, and always ask for better.
Save Money on Utilities
Even once you are on the best deal, with the best provider for you, you can save money. When you work from home, it’s only natural that your utility bills will go up. Your heating will be on more in the winter, you might use more water, and you’ll definitely use more electricity, charging your appliances and working with the lights on in the winter. You might also need to upgrade your internet speeds to do your job.
There are some big ways to make savings, like using water tanks to collect rainwater, and having a smart meter installed. But, there are also smaller things that you can do, like using draught excluders on your external doors, closing the doors to rooms that you don’t use and turning their radiators off and turning lights off when you leave rooms.
Meal Prep
The cost of eating when you work at home can actually be more than paying for lunches when you work outside the house. Many home workers find that they reward themselves with food. Instead of taking a full lunch hour, they have a quick lunch, and several short snack breaks to keep them motivated and focused during the day. Suddenly, they are eating all of the time. Unhealthy and sugary snacks that are easy, but expensive when consumed so often.
To save money, start preparing your workday meals. Prepare healthy lunches for each workday at the start of the week. Prepare healthy snacks like a veg stick and dips that you can just grab on the go, and try a healthy smoothie when you need an energy boost. If you fancy a hot meal, soups can make an excellent, cheap and healthy option.
Don’t Forget Your Expenses
If you are self-employed, whether as a freelancer, a home business owner or a blogger, you need to file a tax return at the end of the year to declare your income, this determines how much tax you need to pay for each tax year. Even if you have another job, if you earn money for yourself, it’s something that you have to do.
Many people completely neglect their tax-deductible expenses. These are the things that you spend money on, for your business, that you don’t need to pay tax on. The total amount of tax on these items comes off your tax bill at the end of the year. But, only if you declare them, and keep hold of your receipts in case you ever need proof.
As someone that works from home, you’ll be entitled to deduct things like stationery and office supplies, as well as supplies specific to your business. Because you are based at home, you’ll also be given an allowance towards your utilities.
Save Online
When it comes to saving money for your home business, you should use the internet as much as you can. Create digital marketing campaigns, use social media to market your company, but also to make connections. Use video chat to speak to clients and hold meetings. Use Google calendars to organize your time, and apps to manage your accounts. The internet is absolutely filled with tools to help a small business. Use as many of them as you can.
Explore Your Childcare Options
Many parents work from home. One of the main reasons for this is the possibility of flexible working. Before they start they picture themselves working while the kids watch TV, or when they are in bed. The reality, however, is often very different. As soon as you start work, they want your attention, and it only gets worse as they get older. It can be tempting to turn to expensive childcare, just so that you can get stuff done. Ask yourself if this is your only option? Could family and friends help? Could you try to organize your workload around your children a little more? Could your partner help out more, or share the childcare? You might have more options than you think you do, just make sure you explore them before committing to anything.
Working from home can save you a lot of money. But, it’s not always as black and white as working from home is cheaper because you won’t need to commute. Home working comes with associated costs of its own, which can make it more expensive. You just need to be smart, think about your options and make the right financial choices.
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