Would Working from Home Save You Money or Cost You?


The idea of working from home is something which is interesting more people each year. There are a few different financial aspects to take into account before you do this, so let’s take a look at some of the main ones.

The Salary

Probably the biggest reason which many workers find for not going ahead with the home working approach is the fear of earning a much lower salary. It is fair to say that it is relatively common for people to earn less at home than in a conventional job but it is becoming increasingly difficult to generalize and suggest that it is some sort of step backwards in your career. If you want to look on the positive side how about this example; a guy works in a job he hates so quits it and starts doing an online job he loves. Which do you think would pay better?

It depends what the jobs are, clearly, but there seems little doubt he would put more effort, more hours and more talent into the home working position, so there has got to be a chance that it will pay him more. This point isn’t even an issue if your boss lets you do your current job from home. There’s no harm in asking, right?

The Commuting

A big saving on transport can be made by many workers who decide to stay at home to do their jobs. If you add up how much you spend in a year just on travelling to work and back it probably adds up to a tidy sum. By switching to commuting from your bed to your home office you cut out this expense at a stroke. There is also another benefit to be found here which you might not think of at first; by saving commuting time you have the option of earning more by working a longer day.

The Home Office

A reasonably big expense you might have to face up to is that involved in setting up your home office with furniture and equipment. To be fair, a lot of us now already have most of the components of a decent home office anyway. Even if your computer is quite old and your chair has seen better days, as long as no one is coming to visit you there is no reason to splash out on new equipment right away. Even when you need to buy a few things it doesn’t have to cost a fortune. Second hand office furniture and reconditioned computers and printers offer good value and should be enough for more home workers’ needs.

The Possible Tax Benefits

The expenses involved in setting up a home office and maintaining it leads us nicely onto the subject of the possible tax benefits of working from home. One great thing about working from home as a self employed person is that it could end up with you paying less money in tax than you currently do as you will likely incur business related expenses which can be deducted from your tax liability. Many people get scared by the thought of maintaining their own taxes but it really isn’t as difficult as you might think and there are many helpful online tools which can help you to work out your tax liability

The Extras

Each individual case will involve a few extras which are either savings or extra expenses for someone switching to the home office way of working. For example, you might find that eating your lunch at home rather than outside gives you a good saving as well as a healthier lifestyle. Another issue is that of your clothes. This can be a big expense for many people but by staying at home it should be something you save on. However, switching from a conventional job with a free uniform to a home job in which you wear your own clothes can mean slightly more expense. On the negative side, you will spend more on electricity if you are home working all day.

The Conclusion

If there is one thing we can say it is that each case is different. If you are considering working from home for the first time then it makes sense to think about all of the points we have considered here and come to a sound financial decision based upon your own situation.

10 Responses to Would Working from Home Save You Money or Cost You?

  1. Mark Ross says:

    I think it can cost you less and help you save more money in the end, though, some people may have a different experience, just like you said in the end. I also agree with you that all of us have different decisions based on what we experience, so maybe others save by doing this while others don’t.

  2. Working from home definitely saves money. No commute, less money spent on food and clothes.

    Don’t forget the intangibles, it can help your mental health which you can’t put a price on 🙂


    • Adam | Money Rebound says:

      If can also damage your mental health if you have the kids screaming in your ears all day long but we’ll save that conversation for another post hey Mark 🙂

  3. I personally love working from home. It does get boring sometimes but the benefits far outweigh the drawbacks. My worst day working from home is still better than my best day at my old 9-5. I hope to never go back!

    • Adam | Money Rebound says:

      Yeah I love it too Holly and from the figures on your Comment Luv post it seems to working out well for you!

  4. I know I would never quit my career since I studied so much for it and I love what I do. Working from home probably wouldn’t suit me as I’m not an office guy. I love to blog but to have to sit in the office all day would drive me bonkers. I agree with all your points and a solid plan is very important.

    • Adam | Money Rebound says:

      I think it’s all about job satisfaction mate, if you’re happy with what you’re doing then why change it.

  5. I love the idea of working from home but I’m not sure if it’s for me. Though I do dream about living somewhere tropical and being able to work from my laptop on the beach.

    • Adam | Money Rebound says:

      That sounds amazing right now! I’d do it but I’m not sure my wife would feel the same as she likes a stable life near her family.

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