FinanceHow to Maximize Savings While Working Remotely

How to Maximize Savings While Working Remotely

There are many perks to working from home. You get to skip the commute, relax your dress code, and create that all-important work/life balance. Many people also like the idea that they can save money by not having to leave the house and drive to work every day, but they don’t always maximize their savings.

The fact is that you have to be smart if you really want to make the most out of your remote situation. We are here to help with tips on how to budget, manage your expenses, and reinvest your savings to improve your business.

Be Smart About Your Money

To maximize your savings, you need to look at the big picture and think about which expenses you can cut and how you can make the most out of working from home. Research the perks, such as the ability to deduct eligible office expenses come tax time. The biggest deduction you can make is the office space itself.

The IRS allows you to deduct $5 per square foot of your office space, with a maximum of 300 square feet or $1500 per year. That is a lot of money that you can save come tax time, and it doesn’t end there. You can also deduct a portion of your mortgage based on what percentage of your home is made up of your office space.

Now that you are already saving money, you need to think about the cost of office supplies. Do you have room in the budget for the most expensive office chair on the market, or can you get one on sale instead? Use that logic with all of your office equipment. Also, think about unnecessary items that you can sell, such as the old work wardrobe that you no longer need or the software package that you no longer use.

Expenses Can Be Tricky

You can save even more money by taking a look at your expenses and determining where you may be able to cut back. Expenses can be a bit deceiving when you work from home. You may think that you are saving a lot of money by not driving to work, but instead, you constantly have your lights and the air conditioning on, and your energy bill is through the roof.

A big way that you can cut back is by moving your desk near a window, turning off the lights, and instead using the natural light from the sun to see your work and conduct your meetings. It is also a good idea to install a smart thermostat and set it at 78-degrees, which is a comfortable temperature that will keep your monthly bill manageable.

Another tricky expense is your daily meals. Many people believe they are drastically cutting their costs by not going to a physical office and eating out for lunch, yet they constantly order food delivered to their homes. It is fine to splurge every once in a while, but those recurring costs can quickly add up. So, consider going to the grocery store so you can make your own meals. Simple tricks like this can make a big difference.

What to Do With the Money You Save

Now that you are saving cash, you can continue to make smart decisions about how you can reinvest the money you have left over. For instance, if you work from home as an independent contractor, then your tax bill can be massive come April, so start putting the money you save into a tax fund and don’t touch it until the time comes.

You could also use the money to spruce up your office. If you often entertain clients in your home, then you might add an affordable couch or a set of chairs, many of which are affordable and will fit your budget. You could also take the time to create the perfect background for your video calls. Avoid a distracting background and instead place a piece of art or paint your office a relaxing shade of ivory.

As Bill Gates says, you need to “invest in your education,” and you should use your extra funds to take his advice. Take some courses on the side so you can learn the tools of the trade to make your company even better. You could either learn more about your current career or take a class about something completely new so you can continue to branch out. In many cases, you may be able to write off those classes on your taxes.

As you can see, there are many ways that you can make the most out of your remote position and save a bundle of cash. Consider these tips, and these saved funds could take your business to new heights.

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