Tuesday, September 6, 2016

Saving is the new earning!

By now you have likely realized many of the common savings one gets by working from home: less gas, car maintenance, lunch money, dry cleaning, etc. And not to mention the TIME! But there are other things you can be doing to save money that maybe you hadn’t considered!

Review your auto insurance policy. Many policies are based on the number of miles you drive to work each day, as that impacts your risk of being in an accident. If you aren’t driving, your risk is practically nonexistent. Talk to your insurer about this change and see if they can bring your rates down.

Or, consider selling your car. If you live in a two-car household, go down to one. Even if it’s your only vehicle, consider what public transportation or ride sharing has to offer. This is a much bigger deal if you are still paying on the car. Why pay on something you aren’t using? Personal choice, of course, but worth deep consideration!

Buy a portable heater and/or air conditioner. Or maybe just a fan. When you are at home, you are going to want a comfortable environment. But there is no sense heating or cooling your entire home just because you are in one room! A portable heating or air unit will consume a little electricity, but not as much as your whole-home unit. It will also keep the wear-and-tear off your expensive whole-home unit. There are some really nice models that can provide you in-room comfort with little energy consumption, and actually very little noise or overhead to install and use. Also consider smart whole-home units and smart electrical conservation equipment that will allow you to utilize the equipment you already have for the house in a more effective manner.

Sell or donate your work clothes. If you are really at home all of the time, it’s highly doubtful that you are wearing your dress or suit to your home office. If you intend to stay working from home for a while, put the clothes to better use than collecting dust! Consider selling your clothes at a yard sale or consignment shop. Or, my personal preference, donate your clothes! You can deduct your donations on your taxes and help others in need. There are even charities, like Dress for Success, specifically looking for gently used professional clothes. Besides, if you do go back to the office, you don’t want to be wearing last season’s clothes, do you?

Shop in bulk. You know those big-box stores where you can buy a twelve pack of pianos for the cost of one? You may not belong to them because your family is small or you didn’t think there were items there of interest to you. But, you’ll soon find out that there are supplies you need more of when working at home. You don’t realize how much toilet paper you go through until you are only using your own restroom! There are other things too, like printer paper, pens, notebooks, tissues, etc. that you are now having to supply for yourself. Buying these stable items in bulk can save you a lot of money. Many of these stores also have great deals on other office supplies and equipment, from desks to electronics.

Look for internet/phone discounts. If you employer is not paying for these services, talk to them about a discount. Many employers are able to work directly with the cable and phone companies to offer discounts to their employees, passing on savings or better customer support. In many cases, they are offer access to business class services, where the quality of the product (such as Internet speed) is better and the response time and priority for issue resolution is higher.

Make sure your work location is correct, legally. States, cities, and even “sub-cities” all have different taxation rates. When you are in the office, your paycheck is being taxed on the location of the office. However, if you live in a different county, city, state, etc. your tax requirements may be different. By ensuring that your work location is associated with your home, you may be able to avoid higher taxes otherwise incurred at the office.

Keep those receipts! When you are at home full time, you can take tax deductions for your home office as well as purchases made to enable your work. If you needed a new desk, a new computer, copy paper, toner, a new chair, etc. – these can all be deducted if used for work purposes. You may be able to deduct mileage if you are required to go to the office and even parking! It’s always best to consult with an accountant regarding your taxes and questions related to your deductions, but if you don’t keep your receipts, you can’t even start the conversation. When in doubt, file it!

Make sure you are getting the most out of your work at home experience by capitalizing on the savings available, and ensuring that minimal additional costs goes out the door. It’s a rewarding job to have, in more ways than one!

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