Working from home isn’t only convenient; it can also save your money.
Nearly half of Australians already work from home, and the new statistics suggests that this trend will continue. Working from home not only expands the flexible working options that employees are beginning to appreciate, but it also means that, with a little planning, this can save money.
Depending on whether you are self-employed or employed full-time, the amount of money you may save varies. When you work full-time, your travel expenditures are set, you have fewer opportunities to claim business expenses like equipment or subsistence costs, and you pay a fixed amount of tax. However, working from home allows you to enjoy a far more cost-effective lifestyle. It may allow you to work from the comfort of your own home or even from a different city or country.
Working from home allows you to save a significant amount of money. Here are five ways on how to save money in Australia by working from home.
One of the most obvious ways to save money is on your daily commute. You will save money on gas, car maintenance, and wear and tear on your vehicle if you work from home. Most major Australian cities have a reusable transit card that can be loaded with money and used to tap on and off when using public transportation. You may have to pay a modest charge when you initially get the card, but you’ll save a lot of money in the long run, and you can even sell your vehicle if you live in a city that have public transit alternatives.
In a typical office environment, it’s easy to fall into the trap of spending money on takeaway with coworkers or going out for expensive lunches with colleagues. In Australia, food may be incredibly expensive. It is reasonable to anticipate that your food cost will be very expensive if you frequently dine out. Saving money on food in Australia is simple, and it entails eating at home more often. When you work from home, you are less likely to be tempted to order meals or go out to eat since your colleagues aren’t there to exert influence over your decisions. You’ll have access to a fully stocked fridge and pantry, which will be filled with nutritious, inexpensive snacks and meals throughout the week. In addition, since you won’t have to travel, you’ll have more time to food prep for lunches and snacks in advance, which will save you money. Working from home means you’re less likely to make impulsive purchases and you’ll be able to save money on your daily lunches.
- Freedom of living
A remote worker is not bound to a certain office building or location, as is the case with an in-office worker. You will have the freedom to live virtually wherever you choose as a result of this. If you want to save money, relocating to one of the most inexpensive locations in the country is a smart idea. Despite a recent increase in the value of real estate, Hobart continues to be the most affordable city in Australia to live in. Generally speaking, houses in the Tasmanian capital are about 25 percent less expensive than the national average. Living in a reduced-cost-of-living area will result in cheaper monthly expenses, which will offer you the opportunity to put more money toward your financial objectives as a result of your relocation.
When you work from home, you may find that you don’t need to spend as much money on clothing. Even while you may want to buy few professional clothes for internet meetings and events, there will be no need for you to worry about wearing a professional dress every day of the week. This has the potential to save you a lot of money. You’ll probably feel more relaxed for the rest of your workday as well.
If working from home has become your “new normal,” you are likely to use your own internet, phone, and electricity for business reasons – as well as, in some instances, your own computer, equipment, and furnishings for work purposes. This implies you’ll have more items to claim on your tax return as a result of this. Furthermore, greater deductions translate into a larger tax return in your wallet.
In accordance with the Australian Taxation Office (ATO), individuals who work from home are eligible to claim the following ‘running expenses‘:
- Heating, cooling, and lighting the location from where you are working, as well as operating equipment that you are utilizing for work, are all examples of electricity costs.
- Expenses associated with maintaining a designated work area.
- Bonus Tip: More time to save money
Since you have some time up your sleeve by saving a commute you can head to our useful resources to find ways to compare your health insurance, electricity and gas. If you do this once per 6 months you’ll likely save a few hundred dollars per year. That money can be put to work straight away by investing.