Even though many companies have been transitioning back to in-office work, remote and hybrid working models aren’t going anywhere. Just over 21% of Americans work remotely some or all of the time, according to the latest data from the Bureau of Labor Statistics (BLS).
Working from home comes with a host of benefits, from being able to sleep in later, avoiding long commutes, and ditching your business casual attire. But it can also come with more expenses, like higher utility bills and more expensive grocery runs.
So, how can you keep your work-from-home expenses low? Here are some cost-cutting measures to try.
What are the costs of working from home?
One of the benefits of working from home is avoiding the many costs of office life: commuting, meals out, professional clothes, child or pet care, and more. In fact, full-time office workers spend an average of $863 per month on work-related expenses, according to a survey by video conferencing solutions company Owl Labs.
But there are also expenses associated with working from home.
Although remote workers spend about half as much as office workers ($423 per month, on average), these costs can still put a strain on your budget.
For example, spending more time at home can increase your energy costs due to increased water and electricity usage. It can also lead to a more expensive grocery bill if you’re eating more meals at home (and maybe eating more in general thanks to a fully stocked kitchen nearby). Plus, there are costs for setting up and maintaining an at-home workspace, which can be expensive depending on the furniture and supplies you need.
5 ways to save money when working from home
The good news: There are steps you can take to reduce the expenses associated with working from home and put more money back in your pocket.
1. Consider a wholesale club membership
Working from home might mean skipping pricey work lunches with your coworkers. However, it also means your grocery bill could increase as you transition to preparing more meals and snacks at home.
Buying coffee, snacks, frozen foods, pantry staples, and other frequently used items in bulk from a wholesale club can lower your cost per serving (and reduce the temptation to order takeout during the workday).
For example, say you’re planning to make your own coffee at home every morning. A 33-ounce container of ground coffee from a grocery store might cost around $21, or about $0.64 per ounce. Meanwhile, a bigger 43-ounce container of that same coffee at a wholesale club might cost $23.
Even though you’d pay $2 more up front for the bulk version, the larger container costs just $0.53 per ounce — 11 cents less than coffee from the store.
Buying in bulk doesn’t just help you save money on food, either. Paper towels, toilet paper, cleaning products, laundry detergent, and other supplies may go faster when you’re home all day. Buying these items in bulk sizes can be more economical (if you have room to store them).
Plus, depending on the club, your membership benefits could include other discounts such as cheaper gas, prescriptions, insurance, and more.
2. Take advantage of employer discounts and perks
Employers that offer remote work or hybrid work policies may offer stipends or reimbursements for home office supplies and furniture. In some cases, this can also include free or discounted internet and phone plans.
Be sure to keep tabs on your employee benefits. Even if you’ve been working for your company for a while, your benefits may have changed and you could be missing out on savings. Plus, there may be perks detailed in your employee benefits guide you didn’t even know existed.
3. Invest in energy-efficient home appliances and devices
Once you transition to remote working, one of the bills that will inevitably increase is your utility bill.
More time at home means you’ll likely be using more electricity and water, keeping your devices plugged in for longer periods of time, and using more energy to cool or heat your home throughout the day.
However, there are steps you can take to keep energy costs down. This includes installing energy-efficient light bulbs, smart power strips, smart thermostats that optimize your heating and cooling schedule, and even curtains or blinds to naturally maintain your home’s temperature.
Unplugging idle devices, sometimes known as “energy vampires,” can also prevent your devices from continuing to suck up energy when they’re not in use.
4. Use a credit card to earn rewards for your remote work lifestyle
Some remote jobs offer the flexibility to clock in from a hotel or a sandy beach in a different country. However, traveling more often can put a dent in your savings.
This is when opting for a credit card that rewards your spending can make sense.
Many rewards credit cards offer cash back, airline miles, and points for travel-related purchases. You may also qualify for free or discounted travel insurance, airport lounge access, and more.
But even if you’re sticking around at home, a rewards credit card can make some of the spending you already do while working a little more valuable. The key is to use the card for planned expenses — not spending more simply to earn rewards.
For example, you could put recurring work-from-home expenses such as internet and cell phone bills, office supplies, software subscriptions, groceries, coffee, and occasional food delivery on a rewards card. Depending on the card, those purchases might earn a flat 1%–2% cash back or offer higher rewards in certain categories. Then, as soon as you get paid, pay off the card’s balance so you never rack up interest charges.
5. Adjust your auto insurance policy
There’s a good chance that if you work from home, you don’t drive much during the day. Requesting a low-mileage discount from your auto insurer could significantly lower your car insurance premiums.
Many auto insurers offer discounts for drivers who spend less time on the road. This may take the form of a flat discount, a base rate, and an additional pay-per-mile rate, or usage-based insurance.
Start by estimating your new annual mileage. For example, eliminating a 20-mile round-trip commute five days a week could reduce your driving by roughly 5,000 miles per year. Then contact your insurer or agent and tell them your driving habits have changed because you work from home. Ask them to update your estimated annual mileage, which is used to calculate your premium, and also ask specifically for any savings programs they offer.