5 Tips To Optimize Your Income While Working From Home

Working from home makes us rethink how we manage our professional and personal lives. Many employees have enjoyed the perks of being able to work from home such as no commutes, lunch breaks with partners and being accompanied by their pets and sometimes children. Studies show that working from home increases employee happiness—a significant finding as those who worked from home 100% of the time were 20% happier on average than those who didn’t have the ability to work from home. And happier employees are more productive. In addition, several science-backed studies show less stress plus a five percent increase in productivity when employees work from home.

The number of companies offering flexible work schedules has increased drastically since the 2020 pandemic. Since November 2023, 62% of companies in America offer flexible schedules, and while there is a lot of talk about returning-to-the office, this won’t be happening for the majority of workers anytime soon because of the risk-averse ploys employees are using to maintain a work-from-home schedule.

With the rise of remote work shaping the future of employment, many workers are seeking ways it can save money: no commute costs, less money for work attire and more personal time for balance. In addition, working from home allows employees to optimize their home setups and finances for greater efficiency and savings. By choosing a well-thought-out home office and adopting savvy strategies for childcare, food and utilities, you can achieve a more fulfilling work-life balance without compromising on productivity, while saving extra money.

Working from home offers a better work-life balance for most employees as side gigs or full-time employment, while also opening up opportunities for significant financial savings. Nicole Magelssen, founder and CEO of Alpine Virtual Assistants and expert in remote work, offers five tips to save money at home while working remotely in 2024.

1-Embrace the Home Office Over Co-Working Spaces

The allure of co-working spaces is undeniable, according to Magelssen. “They offer a hub for creativity, networking and collaboration, attracting diverse professionals. Co-working spaces are an amazing networking opportunity and allow for collaboration and creativity. They attract individuals from various professions, including entrepreneurs, freelancers, remote workers and small businesses, plus they allow their members to learn from and bounce ideas off one another.”

But she notes a drawback due to the financial implications that must be addressed. “They are incredibly expensive,” she cautions. “For example, getting a co-working space in Arvada, Colorado, can cost $300 for a first-come, first-serve desk, and a dedicated desk can cost up to $500 per month.” Given these costs, she posits that setting up a home office becomes a viable alternative and a financially sound decision.

2-Optimize Your Home Office Economically

Creating an effective workspace at home doesn’t have to break the bank, Magelssen Advises. “For comfort, you will want to focus on ergonomics and efficiency, such as investing in a good chair and desk. To save money, though, opt for energy-efficient lighting, utilize second-hand finds and embrace the digital minimalism philosophy to avoid unnecessary gadgets that clutter your space and mind.”

3-Navigate Tax Deductions & Home Office Benefits

She suggests that you remember that having a home office can save you money when it comes to tax deductions. “Document your expenses meticulously to claim deductions for your workspace, internet and utility bills,” Magelssen suggests. “This can lead to significant savings come tax season.”

4-Implement Childcare Strategies to Save Money

The conversation around working from home often circles back to managing childcare. Magelssen mentions that while solutions such as co-working spaces with childcare seem like an innovative solution, they come with a hefty price tag. “The co-working spaces with childcare are a nice option, but paying for childcare on top of your monthly co-working cost can easily match daycare costs alone,” she declares.

Magelssen shares her personal experience and how she manages expenses to make the most out of her time at home. “I opt to send my youngest child to part-time childcare for the same cost as the fees at the childcare co-working space and work from home while he is there. We have a desk that comes down from the wall when my husband and I both have video calls since we don’t have space for two offices. This approach saves money and allows parents to customize their childcare based on their unique schedules and needs,” Magelssen notes.

5-Manage Utility Bills Wisely & Cut Costs on Essentials

Beyond the office setup, Magelssen says that simple changes in daily habits lead to more savings. “Energy-efficient appliances and homemade meals over takeout drastically reduce monthly expenses and will keep your wallet happy,” she insists. “Invest in smart power strips and energy-efficient appliances. Use natural lighting during the day instead of artificial lights, and instead of heating or cooling the entire house, focus on the room you are working in.”

A Final Wrap

These tips can come in handy for the nearly half of American workers with side hustles—especially those who insist that the return to the office movement diminishes their flexibility, which they want for a better work-life balance.

Flexibility remains the primary driver for individuals switching from typical office hours to flexible gig work with 63% saying that setting their own schedule makes gig work more attractive than a traditional office job. As the cost of living continues to rise (while wages don’t), the gig economy offers the flexibility for these workers to earn more money and create multiple streams of supplemental income right in their homes.