Starting a home-based business is one of the best ways to save money. Imagine being able to save on expensive office space, the commute to the office, and all the other bills that come with having a job or running a business outside of your home.
Once you act on your business ideas you can get creative with how you save money by running a home-based business.
Here are some easy ways in which setting up a home-based business can save a lot of money. So get ready to trade the office for the sofa.
$2000-$3000 on Commutes
The main advantage of running a business from home is you’ll save a lot of money on simply not having to travel to the office. Think about how much you spend on gas just going to and from work every year.
If you must travel for one hour every day that amounts to hundreds of dollars every year.
So how much can you realistically save?
Let’s say you travel 20 or more miles to work. Working from home could save you anywhere from $2,000 to $3,000 every year. This number doesn’t even factor in E-Z Pass or wear and tear to your car.
You may still have to travel to meet clients, even when running a business from home. But regardless of whether you’re a freelancer or a small business, you can file your gas expenses as a tax write-off.
Thousands on Wear and Tear for Your Car
Another way a home-based business can save you money is your car will eat up fewer miles. General wear and tear on your car can’t be avoided, but it can be reduced simply by driving less.
Major repairs can run into thousands of dollars.
Up to $2000 on Clothes
Even the most casual workplaces likely don’t allow you to throw on a t-shirt and a pair of yoga pants. Run a home-based business and that’s your new uniform.
Believe it or not, even corporate offices won’t give you an allowance to buy formal clothing. That must come out of your pocket.
For example, the average American woman spends a little over $1900 per month on clothing, and this doesn’t include work clothes. If you work in an industry that requires a specific uniform, you are looking at spending more, which is also coming out of your salary. While it’s true that you can claim a tax write-off, you’re not getting 100% of your money back, and you must wait for months to get a portion of your money back after your purchase.
The point is when you start a startup, you won’t have to purchase as many clothes, and you could possibly triple your current salary.
Up to $2000 on Lunch (Not Including Coffee)
The average American worker spends $1,100 a year on coffee and $2,000 a year on lunch. There are so many people who prefer to purchase their lunch rather than pack it at home. Honestly, who can blame them when you factor in families, children, long work hours, and the like?
This is not an expense you can simply eliminate by working from home. You need to eat. But now you’re not compelled to buy overpriced food at a deli in the heart of the city. Now you can cook to save money. Plus, there’s the added benefit of making it easier to be healthy and regain control of your health.
There’s also no need to pay $5 per cup of coffee from Starbucks. Instead, you can just invest in a Keurig and make your coffee at home.
You won’t completely eliminate your food expense, but you’ll definitely reduce it. Someone working from home could save at least 75%.
20% of Your Income for Childcare
Employees with kids have it extra hard because they have to pay for babysitters and other childcare costs.
Approximately one-third of Americans spend 20% of their income on childcare alone. However, this statistic varies based on your location, the number of kids you have, and your preference of childcare services. (For example, you might prefer a nanny or a live-in sitter over daycare or leaving your children with someone you know.)
By becoming a sole trader or forming a limited liability company, you can be flexible with your work hours. Therefore, you can reduce the amount of money you spend on childcare.
However, keep in mind that this could result in your having to work when the kids are asleep or at school. You also might not be able to work weekends. This could affect your sleep quality until you start generating a positive revenue.
Many entrepreneurs need debt relief during the early stages of their business, so reducing childcare costs is a big plus.
RELATED ARTICLE: DON’T LET FINANCIAL PHOBIAS KEEP YOU FROM GETTING DEBT RELIEF
The Last Word: Save by Starting a Home-Based Business
Starting your home-based business is easy, and you’ll notice a big difference in your expenses immediately.
If you’re obsessively good at managing your resources you could wipe off 75% of your regular expenses every month. You’ll notice it in your household bills. You’ll also have more money to invest in your business.
For example, by working from home you could increase your salary by up to 50% during the first year of your home-based business. This statistic includes both your positive revenue and the savings you would experience.
Have you ever thought of starting a home-based business? What are you waiting for? The time to start is now.
About the Author
Author Bio: Victoria Heckstall is a freelance writer and serial entrepreneur who started her first business in 2011. She hasn’t looked back at the standard nine-to-five since.