How much money do you save working from home?
When you’re working from home, there’s some expenses you just can’t avoid, like electricity, internet bills and setting up your home office. But other than that, working remotely can usually help you save some extra cash. Here’s some of the things you’ll save on when you’re working from home:
- Transport: Depending on where you live, working from home could save you quite a bit each week in public transport costs. And if you used to drive to work, you might not have to fork out as much for car maintenance, petrol, parking and tolls. Even if you’re at home a few days a week, you could be saving a lot. According to a 2021 article published by the University of Sydney, commuters in Australia can save up to $906 in out-of-pocket expenses each year with a further $2,643 in travel time savings each year.
- Food: Sadly, Friday pub lunches with your workmates may be few and far between, but leftovers can be your new best friend. Meal-prepping or making a few extra servings at dinnertime can sort out your lunch for the week.
- Coffee: We’re all about sticking to your routine when working from home, but a $5 coffee each morning adds up fast. Switching to instant or investing in a coffee machine may help save some cash in the long run.
- Clothes: Business on the top, comfort on the bottom. Doing meetings via webcam means you can have a bit more flexibility with what you wear and avoid spending big on business attire. Plus, more days at home means less washing and ironing too!
- Tax: Claiming your working from home costs might be another way you can save some cash. It all depends on your job, but things like a portion of electricity, internet, a new monitor and phone bills might be top of your list at tax time. Here’s a handy list of things you could claim at tax time.
Let’s not forget about the potential health benefits when working from home too. With less time spent commuting, you might be able to squeeze in extra exercise, or catch up on much-needed sleep. Plus, fewer disposable coffee cups being used helps our environment!
What are the costs of working from home?
Although you’re likely to save more money working from home, there are a few costs to consider. You might need to spend a bit of money on setting up your home office – that flashy standing desk can come with a hefty price tag. And because you’re home all day, you’ll probably be spending more on utilities like gas and electricity.
On a personal level, working from home can take a toll on your work-life balance if you let it. Without the physical distinction between your office and home, some workers fall into the trap of working longer hours than they usually would or jumping on their computer outside of their working hours.
What to do with all the extra cash each week?
We’re all about balance when it comes to saving and spending. You should be able to treat yourself with your money. But if you’re keen to save some of that extra cash, you can try investing in:
- An emergency fund. This could help bail you out if you ever find yourself in a tough spot.
- A high interest savings account. Don’t just save your money, watch it grow in your account and set some aside for a well-deserved holiday or other treat. Check out ubank’s Save account – you can earn bonus interest on a combined balance of up to $250K across all your Save accounts when you deposit at least $200 per month into any of your Spend or Save accounts.
Working from home, even if it’s just a few days a week, might help reduce your costs and give you a bit extra in your bank account. While you might not be able to hang out with your teammates as much, make the most of those sleep-ins and savings while you can.