Since remote working skyrocketed in popularity during the pandemic, it has since proved to have some serious staying power. And for good reason!
Working from home helps reclaim precious time back into your day – an invaluable benefit. It also lets you enjoy the freedom to choose your location, outfits, and how often you bend down to pet your four-legged friend.
So, how much time and money does remote work actually save you? Assigning a specific dollar value is hard, because every individual has a different home life and work style.
Let’s break down some of the main benefits that remote work provides, and try to get a ballpark estimate of time and money savings. This might help job seekers who are comparing different roles and opportunities.
Money savings from remote work:
Right now it’s reported that around 14% of employed adults work fully remotely.
And people love it so much that on average they are willing to take an 8% pay cut to work a hybrid or fully remote schedule!
But is an 8% pay cut really worth the potential savings?
If you make a $100,000 salary, that’s an $8,000 pay cut. Will you save more than $8k working remotely? (Spoiler alert – yes, probably!)
Here are some more specific numbers and savings you might get from working remotely…
Save on Driving Costs:
Commuting to and from the office is one of the most frustrating parts of having a traditional 9-5. It’s also one of the most expensive!
Individual commuting costs vary a lot based on distance, location and what type of vehicle you drive. But here are some averages to consider:
Fuel: Daily drivers spend around $867 each year on fuel costs to get to and from the office.
Insurance: Most insurance companies offer a low-mileage discount (can be between 5-20% of the policy) for driving less than the national average. Without commuting to work, you’ll likely qualify for those savings!
Maintenance: All that driving to and from work means additional wear and tear on your vehicle. This is estimated to be around $410 in extra maintenance costs annually.
Opportunity cost: If you think about it, you’re not getting paid to commute! Which means you’re kind of working those hours “for free”. This can be quantified as lost wages, which is estimated to average $5,190 per year!
Second car: If you or a spouse works from home full time, there’s a good chance you could get rid of a car completely. In 2024, the average car cost is about $12,000 per year!
All in all, working from home can drastically cut your car costs. Or, eliminate them completely!
Total estimated savings: $5,000 – $12,000/year
Buying on Work Clothes
Part of working an in person job is looking the part. And those fancy shmancy work suits can certainly add up!
According to a study by NVISION, men spend $307 a year on work clothes, while women spend on average $328. (Personally, I think these numbers are light!)
Working from home reduces the need for work blouses and slacks. Instead of dressing up head to toe, remote workers can get by with just a few pieces for those “camera on” meetings.
Estimated savings: $300 – $500/year
Saving on Food Costs
Another cost savings that working from home can help with is slashing your restaurant and eating out budget.
Home cooked meals are way cheaper than food from restaurants. We’re talking $4 on average vs. $15 per meal! WFH folks naturally cook more at home because they aren’t out and about with colleagues.
Saving $11 for every meal you would have eaten out can really add up. Assuming you take 2 weeks off from work each year and have 8 holidays, you could save $2,673 annually just by eating lunch at home.
Not to mention, it’s healthier for you! Making your own lunches means having full control over what food you’re consuming.
Estimated savings: $2,500/year
Childcare Costs
Kids are expensive! Especially paying for childcare in those younger years.
On average this year, families are spending 24% of their household income on childcare. That’s nearly as much as financial experts recommend spending on housing!
With the high cost of childcare, many families even decide to have one parent stay home to watch their kids, eliminating an entire income stream for that family. In fact, the soaring costs of childcare have caused 45% of working mothers to consider leaving work or reducing their hours.
When it comes to those with moderate to low incomes, having a small amount of extra money left over after paying for childcare just doesn’t seem worth it.
Working a full time job remotely and looking after kids isn’t really possible. But, given the removed commute time and schedule flexibility, you can potentially find cheaper childcare options with reduced hours.
Estimated Savings: $5,000 – $24,000 per year
Morning Coffee & Bagel
Now, I’m not here to bash your coffee habit if it’s the only thing that keeps you sane on your morning commute. But, it’s no secret that those daily lattes can add up to become a major expense.
For example, if you buy a $5 on your way to work (and that’s assuming you don’t ball out and add oatmilk to your latte for an extra 10 billion dollars) five times per week, it would come out to $1,300 each year assuming you took two weeks off from work.
While this may not sound like a life changing amount of cash, the rule of 173 can help us to determine that if you invested your monthly coffee money for a period of 10 years, you could end up with around $18,741!
So here’s the deal. We always encourage you to spend lavishly on the things that bring you joy, and to seriously cut back on the purchases that don’t. But is that daily coffee out really bringing you joy, or is it just making your long commute more bearable?
Working at home completely removes the habit and temptation to pick up that expensive drink. Plus, more time at home can make it easier to enjoy breakfast and coffee at home before you start working.
You can even invest in a fancy coffee maker, like a Nespresso, and still save money each year versus getting coffee out!
Estimated savings: $1,000/year
Tax write-offs
Perhaps one of the best benefits of working from home is getting to take advantage of additional tax write-offs!
This doesn’t apply to everyone, but those working as a 1099 employee can deduct some serious work from home expenses, like home office space, office supplies, internet and phone bills, and more!
How much you’ll save overall will depend on your personal circumstances, like your income, home office size, and how much you spend on work expenses. However, these tax write offs are a nice perk that comes with freelancing or starting your own business!
Estimated savings: 🤷♀️ It really depends!
Intangible benefits of working remotely
Some things in life we just can’t put a price tag on.
Probably the sweetest perk of working remotely is the opportunity for lifestyle upgrades and a better work/life balance.
Here are just a few of those intangible benefits we can’t quite put a dollar number on:
More flexibility
Want to move to Hawaii but your 9-5 is making your lifelong dream a total bust? What about moving to a more rural location to find bigger and more affordable housing?
Simply put, working remotely gives you more lifestyle options. You can apply to remote jobs anywhere in the world, live anywhere you want, and travel without needing to ask your boss for permission.
As long as you’re a competent worker and can get your tasks done, most employers don’t have a problem with how or where you live. You might need to be based in a specific city, but you can usually choose to live a considerable distance away from headquarters.
There actually is an opportunity for cost savings, in terms of housing and cost of living. Taking advantage of geographic arbitrage is a game changer, and some folks choose to travel full time while working remotely.
Keep more of your time
That daily commute to and from the office is a time suck. Drivers on average spend 27.4 minutes commuting, EACH WAY!
Personally, I know a lot of people with an hour-long commute. In fact, I used to be one of those folks! But when you swap that hour drive each way, you’re gaining back 10 full hours into your week, every week.
Beyond the commute, just getting ready in the morning takes a lot of time. Showers become optional, you can get dressed quicker, apply lighter make-up, etc.
Plus, having a remote job can often mean having the luxury of performing a few of those miscellaneous housekeeping tasks throughout your work day.
For example, tossing in a load of laundry, or taking 5 minutes to toss some ingredients into your crockpot so that dinner is ready when you finish work. While you shouldn’t take advantage of company time, taking care of a quick chore here or there during a slow time of day can help you enjoy less stress come 5pm.
Just imagine what you could do with an extra 5-10 hours back in your life each week. That could be equivalent to working an additional part time job on top of your full time job! Or, it could give you the time to pursue your favorite hobbies and lead a more fulfilling life.
One of my favorite addages is “no amount of money has ever bought a second of time.” (Which by the way, I googled assuming this quote would be attributed to someone like Aristotle or Plato but apparently it’s a Tony Stark quote 🤷♀️).
Health Benefits
A sedentary lifestyle can harm your health. In fact, many health professionals have stated that sitting is the new smoking.
Prolonged sitting can lead to a whole slew of health issues, and a long commute certainly isn’t helping that cause!
Working from home can allow you to be more active throughout your day. Because it eliminates driving and makes it possible to get more physical activity daily.
For example, I’ve seen tons of remote workers utilize a standing desk and walking pad to get more steps each day. Or, you could even go for a quick walk during your lunch break.
We touched on this earlier, but you’ll also likely have better access to healthy food when eating in your own kitchen. By cooking your own meals at home you’re in complete control of what you’re putting in your body.
More family time
Perhaps one of the best benefits of working from home is getting to spend more of your day with your family.
Morning time is less stressful, and you can spend time getting the kids ready for school. Or eating breakfast as a family while mentally preparing for the day ahead.
If your spouse also works remotely, you get to cross paths at many points throughout the day. These quality moments with your family can be absolutely priceless.
The Cons of Remote Work
Remote work isn’t all sunshine and rainbows, as much as it may sound like it. There are a few significant drawbacks to consider before taking on a full time remote role…
Less Face Time with Coworkers
Sure, you may still see these folks on Zoom every now and again, but it just isn’t the same as chatting face to face with them by the water cooler.
Building solid relationships at work is an important step in advancing your career. Making sure your hard work is noticed by your boss can result in raises and promotions, and making good friends at work can mean getting offered awesome positions elsewhere if your coworkers change companies.
With less face time in front of influential folks at your workplace, you might not be able to showcase your skills and dedication as much. The fact is, remote workers are promoted 31% less often than those who show up every day at the office.
So, if you’re gunning for a promotion while working remotely, go the extra mile to get noticed at work. With real intentionality, you don’t have to be that statistic!
Check in with your management about the status of your projects before you are asked, schedule additional one on one meetings with your boss, and offer to take on additional responsibilities if your workload can accommodate it.
Harder to “Clock Off” Mentally
It can be pretty hard to relax after work when that report is staring at you from the desk in your bedroom. Or, when your coworkers have your cell phone number and your work group chat is blowing up at the dinner table.
When you work from home, you really need to set boundaries and constantly adjust your work-life balance. There’s zero physical separation from your work and home life, and sometimes they bleed into each other.
Take less pride in your work
It’s easy to feel jaded about the work you’re doing when you’re unable to see the impact that it has on your coworkers and community.
When you work remotely, you’re only seeing your own “piece of the puzzle” every day instead of how your work comes together with that of others at your job. And this makes it way easier to slack off or get bored when you’re unable to see the true value you provide to the organization.
Although it’s totally okay to get bored sometimes, try to remind yourself of why you work there in the first place. Do you have a passion for your career field, or get a certain satisfaction out of specific tasks?
Spend some time focusing on those positives and continue to hold yourself to a high standard even without someone looking over your shoulders.
It can get lonely
Let’s face it- work takes up a huge portion of our lives, and if you aren’t connecting with friends and family outside of work often enough, it’s easy to find yourself feeling isolated and lonely.
Getting out to the office everyday forces you to socialize with awesome folks who share an interest in your field.
If you do choose to remotely work, consider working alongside friends who are also remote a few times each week. And make sure to keep up social interactions with work tools. Replace physical water cooler conversations with virtual catch ups via text, calls, or Zoom.
The Bottom Line:
It’s hard to put a specific dollar value on remote work. But using general estimates we can ballpark the savings to be potentially $10,000 per year for the average worker. That ain’t no chump change!
Above and beyond saving money, there are some extremely valuable lifestyle benefits that working remotely unlocks. More freedom, reclaimed personal time, and a healthier body are a few big perks.
However, it’s important to consider whether or not working from home will be the best choice for your lifestyle. At the end of the day, it’s all about figuring out what works best for you!
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