Exactly how much money can be saved from working remotely? As someone who transitioned from a regular 9-5 into a remote job, I noticed my bank account was a lot healthier at the end of every month. I was no longer spending money every day at Starbucks and I stopped eating out for lunch. This alone saved me well over $1000 a year but I wanted to take it a bit further and dive into just how much money can be saved by working remotely and avoiding the daily expense of commuting and working outside of the home.
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Fuel Expenses
Gas ain’t cheap folks! The average commuter travels around 26 minutes or 16 miles each day to get to work. That accounts for over 4 hours of your precious time every single week, assuming you work 5 days.
So, 32 miles round trip each day means that you’re traveling 160 miles every week just to get to and from work. Even when we account for time off and holidays, most US and Canadian citizens will drive over 6500 miles every single year just to get to their place of employment.
I’m trying to keep this as objective as possible, so for this calculation let’s assume 6500 miles is spent commuting yearly. If we take the average US gas price of $2.60 per gallon in 2019 and assume that you are getting at least 25mpg that means the average commuter is spending over $600 every year just in gas expenses.
Fuel Savings: $600+
Daily Coffee Money Pit
Starbucks is one of those expenses that really sneaks up on you. Last year, I went through a bit of a White Mocha phase and was spending almost $10 a day just on coffee. Not a very frugal move on my part, I admit.
So, let’s assume that you are spending at least $4 every day on coffee or beverages. Of course, this expense is hard to pin down for everyone but a coffee drinker will usually purchase at least one coffee each day while at the office.
The average American works 260 days each year and it will be roughly the same for Canadians. So, cutting out that $4 caffeine boost will save you $1040 a year.
Coffee Savings – $1040
Lunch Time Expenses
On top of daily coffee purchases, a lot of people order out for lunch instead of bringing their own. This article highlights just how much money Americans waste on eating out.
For the sake of our little experiment here, let’s assume the average employee purchases lunch 3 days a week, which I think is a rather conservative estimate. If that lunch bill comes in at $10 per meal on average then you’re looking at a yearly lunch expense of around $870. Working from home allows you to plan meals and budget easier. I often set aside leftovers from dinner so I have a quick and easy lunch the next day. It saves me a lot of money on monthly food expenses.
Lunch Savings – $870
Related: How to Make Money From Home Everyday When You’re a Stay at Home Parent
Business Attire and Dry Cleaning Bills
This one is a little hard to pin down since not everyone needs a suit and tie for work or will have a need for the dry cleaners. For those that do though you could easily be spending between $150 – $300 a year just on dry cleaning alone.
Dy Cleaning Savings – $150 – $300
Childcare Savings
For parents of toddler aged children and below the daycare savings alone will be astronomical. In my area, the average monthly cost for private daycare sits at around $1000 a month per child, on the low end. That adds up to over $10,000 each year in childcare savings, assuming you are able to watch your kids and work from home at the same time.
Childcare Savings – $10,000+
Care Repair Expenses
Less time spent driving means less wear and tear on your vehicle and less time spent at a mechanic. There are a million different things that can go wrong with a vehicle and they all vary in cost so I won’t attach a number to this expense.
Related: Make Money Online Everyday Using These Websites
Total Estimate Savings When You Work From Home
$2800+. This is obviously just an estimate. It could be a lot more or it could be less. The main thing to take away from this is if you’re able to work from home the money you save will be in the thousands of dollars, no matter what. If you commute to work and require child care, switching to a remote job could mean savings of more than $10,000 every year just on childcare alone. Monthly expenses really add up with out of the home jobs and working remotely allows people to control their spending and create stricter budgets.
Cons of Working From Home
Now, to keep this article objective let’s take a look at a few expenses that will cost more when you work from home.
Healthcare Cost
I think the most obvious one is healthcare. If you work from home as a freelancer or an independent contractor you won’t receive health benefits which means you’ll need to purchase your own healthcare insurance plans. The price of these plans varies so I won’t attempt to estimate the cost, but needless to say, you’ll be spending a lot more on healthcare every year if you work from home.
Utilities
Since you’ll be at home during the day your monthly utilities bill is bound to be a bit higher.
Final Thoughts
Working remotely is certainly a lot easier on your bank account. You’ll notice savings almost immediately and you’ll be making a lot fewer trips to the gas pumps. If you’re interested in making money online or working from home have a look around the blog. There are tons of articles outling work from home careers, online money making ideas and blogging guides. Don’t forget to sign up to our mailing list so you can receive work from home tips straight to your inbox
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