Personal Finance Advice

As the old saying goes, the grass is always greener on the other side of the fence.  People who work outside of the home may fantasize about working from home, envisioning teleconferences in their pajamas and long lunch breaks that evolve into luxurious naps.  The flip side of this - and one that not many people who work outside the home realize - is that many people who work from home miss the social interaction and relatively structured nature that can come with working outside of the home.

What about the financial indications that come with working from home? For many people, working from home is the most viable option because of the absence of commuting costs and less need for daycare costs.  Is working from home indeed the best option when it comes to your personal financial situation?

Here are some financial myths about working from home:

You save a bunch of money on commuting.  True.  If you don’t have to drive your car or hop on a bus five days a week to get to work then you certainly will save some money.  The exception to this is if you walked or rode your bike to your workplace before deciding to telecommute.

You don’t have to pay for childcare.  True and False.  Parents envision working at their desk while their young children play peacefully and contentedly nearby, but this is rarely the case.  Working from home while also raising young children is not an easy task, and it usually isn’t long before the thought enters the parents minds to bring in a babysitter or send the kids to at least a part-time daycare center.  On the other hand, some parents are able to handle working from home while also dealing with the kids full-time.  Whether you save money with this arrangement or not depends on your decision with regards to daycare. 

You save money on food.  True.  With a kitchen nearby it’s entirely too easy to simply grab a quick bite from the fridge instead of heading out to a restaurant for lunch, and as a bonus you may be able to get dinner prepared before the other members of your family come home.  This depends on each individual person, however, because there are some people who might still prefer to head out to get take-out instead of cooking at home.

You save money on wardrobe expenses.  True.  Yes, you can work in your pajamas when you work from home.  While you will still need to maintain a respectable wardrobe for when you venture outside of the house, you probably won’t need as extensive a wardrobe as you do when working outside the home.  Your professional clothes will also last longer because you won’t need to wear them as often.

You’ll be more productive because you’re happier, and this will earn you more money.  True and False.  Nobody can know for sure if working for home will be a more pleasant environment, or even if a more pleasant environment equals higher productivity.  There is no guarantee that you’ll enjoy working from home any more than working outside the home, so don’t automatically assume that you’ll rake in the money once you open your home office.

By the way, I love working from home.

How do you find a job that you can do from home? You have a few options:

1.  Ask your existing employer if you can telecommute.

2.  Apply for a job that is already designed to be done remotely.

3.  Open your own home business or start freelancing.

Do not pay someone else money to find you a work-at-home job.  You can find plenty of legitimate jobs by searching online job banks or by searching directly with potential employers.

Will working from home save you money? Probably…but only if you take advantage of the potential savings associated with working from home.