Thinking about working from home? Here are a few financial costs and benefits you might not have considered.

If you’re considering making the leap to working from home—whether full-time or part-time, as a remote worker for your company or an entrepreneur on your own—chances are you’ve already made plenty of pro-and-con lists: more freedom, less stability. More creativity,  less structure.

But what about the financial aspect?

Oh, I’m sure you’ve run the big numbers like income, but what about the smaller, day-to-day costs of working from home versus working a traditional office job?

Here are some monetary costs and benefits of working from home you may not have considered:


Commuting Expenses

The average American spends about 25 minutes each way commuting to and from work daily. By commuting only from your bed to your laptop, you can save considerable amounts of gas money—not to mention extra costs like tolls, parking fees and repairs from the added wear and tear on your car.

In fact, if you’re a two-car household and you’re comfortable with the idea, you could even sell one of your cars altogether, not only saving you gas money and insurance fees, but also giving you a nice little windfall to put aside for some of your startup costs.

Eating Out

Grabbing a coffee at Starbucks every morning. Going out to lunch with coworkers to escape the cube (or because you didn’t have time to pack a lunch).

When you’re working from home, you no longer need the convenience that comes from just buying your food instead of preparing something at home. You also need less of a reason to treat yourself/de-stress/escape your horrible boss by running out to eat. Even if you’re frugal about how much you spend eating out, it still adds up fast.


You know that cliché about people working from in their PJs? Well, it’s true. Maybe you’re not a “conference call in my footie pajamas” person, but you also no longer need to put on a suit and tie each day. (Unless that motivates you somehow. To each his own.)

Whether you’re rockin’ the sweats, t-shirt and jeans or hoodie, you no longer need to worry about updating your work wardrobe each season or paying dry cleaning costs. You’ll still want to keep a few good pieces on hand in case you need to meet a client in person or have a Skype call, but if you invest in a few classic pieces that can be updated with accessories, you can make just a couple outfits fit all your needs.

Office Parties and Fundraisers

No more will you have to pay $10 for stale cake and greasy pizza to celebrate the birthday of an office mate you barely even know. No more will you feel guilted into purchasing wrapping paper, candy bars or gourmet popcorn to help the children of office mates you barely know go on school trips or join pewee soccer.



If you’re working remotely as an employee of a company, this one may not apply to you. But if you run your own business or do freelance or subcontracting work, you know all too well how large a chunk of your income the government takes once you become self-employed. Be sure to talk to a CPA when considering making the transition to self-employment so that you understand exactly what kind of impact your new situation will have on your bottom line.

Health Care

Again, if you’re not under someone else’s employ, your health care costs are now yours to bear.  Be careful to consider that extra expense when you’re calculating how much salary you’ll really be taking home each month.

Utility Bills

If you have a dedicated home office, the good news is that you can write off some of these expenses, at least for the portion of your house made up by your office. (Again, see a CPA for advice for your specific situation.) But the fact remains that when you’re working from home, your utility bills are going to go up.

You can no longer turn the furnace down for eight hours a day in the winter. And even if you’re careful to turn off lights and appliances in rooms you’re not using, you’ll still be using the kitchen, bathroom and other areas that would normally be dark while you were at the office. So be prepared to see your utility bills jump a bit.

Technology and Office Equipment

When you’re doing it all from home, your old patched-together PC and lowest-grade internet may not cut it anymore. While there’s no need to run out and buy an all-in-one printer/scanner/copier/fax machine, bear in mind that you may need to invest a little extra to make your business effective and efficient.

You might need to purchase accounting software to keep track of your various clients or shell out for business-grade internet service if you’re accessing large amounts of data or participating in a lot of video conference calls. The good news is that, just as with utilities, many of these expenses can be written off.

Do you work from home? What added expenses/savings have you noticed?

Kelly Gurnett is Assistant Editor of Brazen Life and runs the blog Cordelia Calls It Quits, where she documents her attempts to rid her life of the things that don’t matter and focus more on the things that do. You can follow her on Twitter and Facebook and hire her services as a blogger extraordinaire here.


  1. Drop Dead Money

    Great insight. On balance, a lot more saved than spent… in dollars. However, the biggest cost is political/social — interacting with coworkers, brown nosing the bosses, etc. Seriously: one of the biggest ways to get ahead on a job is being in contact with and being noticed by superiors and others.

  2. Alison Elissa Coaching

    A great list!

    One other potential cost of working from home is the lack of clear boundaries between work and home. It’s very easy to spend time cleaning up the kitchen during the ‘work’ day. It’s also easy to let work creep later and later into the evenings.

  3. David McWilliams

    Don’t forget, you can deduct half of your self-employment tax as a credit to reduce your reportable income. No one ever mentions that but it softens the blow on paying for employer and employee.

  4. Careerleaf

    Thank you for the great article! Working from home certainly has many pros, but few people truly do their research about the expenses that go into it. While you’re saving money in several areas that you seem to think are significant, many remote workers should seriously consider looking into the other side of working from home. While health insurance and taxes are a serious thing to consider, worries can be alleviated by doing extensive research and speaking to your CPA. Many feel that the biggest cost of a remote work environment is missing out on office culture!

  5. Forex Trading

    Great article. All readers will definitely like this post. Good information regarding Pros and Cons of working from home.

  6. Anne-Marie Edwards Anderson

    Excellent article and so true! The comments below are also very insightful. I am a former college professor and have been working from home for 12 years. I have really saved a ton of money since I used to commute an hour each way. I think one of the real pros about working from home is actually the money. I make more now than I will ever make as a college professor and I’m so much happier.

    “Drop Dead Money” below stated that the biggest cost is lack of social interaction. That can be true. However, I personally have much more social interaction now that I have a flexible schedule. In the past, I never had time to go to Chamber of Commerce or various trade association meetings. In addition, I never had time to get together with acquaintances for coffee and network. The networking I do as listed above has brought me much more success and is much more rewarding because I really have time to turn these contacts into friends.

    My main work from home job now is running the successful website the Legitimate Online Job Directory which is a work from home blog and database of fee free, scam free, mlm free legitimate work from home jobs. If you are looking for a work at home telecommuting job, I highly recommend this site at

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