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How Much Money I Would Save By Working At Home

28 December 2009 No Comment

There is a big part of me that hopes to eventually “work from home”. While the point of it isn’t really to work out of my house, but rather it is to have a more flexible work style and to save money by working at home. I estimate the following ways I could save money by working from home:

  • Hair cut: $20 / month (If I worked at home, I would buzz my head myself and save the money)
  • Work Attire: $300 / year or $25 / month
  • Dry Cleaning: $50 / month
  • Coffee Addiction: $25 / month
  • Eating Out For Lunch: $100 / month
  • Gas: $100 / month
  • Getting Rid of Lawn Service: $100 / month (I’d have more time and do it myself)

If I total each of these up, I have $420 a month in savings.  I think there are a few other areas as well, so let’s just round up to $500 per month.

If your goal is income replacement through another source such as an online business, you can factor in this monthly savings into how much income you need to replace to make it happen.  If I make $5000 after taxes each month, I can estimate that I’d need $4500 after taxes to work from home.

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  • Daniel said:

    There would also be additional costs from qorking at home. Instead of being able to turn the thermostat down while you're away at work, you'd pay for air conditioning/heating, which can be somewhat costly.

    However, you might be able to get a discount from your car insurer because you'll be driving far less and not at all during rush hour.

  • bob said:

    you can buzz your head for free at home without working there…

  • Wojciech Kulicki said:

    The buzz hair comment caught me off-guard, too, but it makes sense–you want to look more presentable if you're going to be at work. Ditto on Daniel's comment–my wife was laid off about 6 months ago, and although we saved in a lot of places, many of our household bills actually went up.

    It's not significant, but it's definitely something to consider.

  • wsamon said:

    A huge savings (for some people) that you missed is commuting. I know that I spend about $200 / month just getting to and from work.