Does Working From Home Make You More Money?

The culture of work is rapidly evolving. Thanks to the conveniences of modern technology, we don’t have to be strapped to an eight hour day at an office someone else owns. We can accomplish most digital and online tasks from virtually anywhere.

This also means that we can effectively operate our own business in a variety of industries from just about any location. One of the most convenient locations is where you may be reading this article right now: at home.

We know this is true because the Covid pandemic proved it. We were able to hold virtual meetings, sell products and services, market our companies, and recruit new talent without stepping into the real world.

To be clear, there is a difference between working for someone else at home and running a business from your home. While both have similar pros and cons, we believe that a home-based business, especially in the United States, is still one of America’s best financial opportunities.

Here are some advantages of working at home:

1. Less commuting

Getting to and from work is a major cause of stress. There are also vehicle expenses or mass transit fares which can add up. In addition, we can save time and make a positive impact on the environment when we travel less.

2. Get more done

Without the distractions of office noise and coworkers, we are often more productive. This increase in productivity makes it possible to actually work fewer hours while completing the same amount of work. Check out this study from Stanford Graduate School of Business.

3. Flexibility for family

While it’s not easy to work when the family is home, you are in a better position to be there when needed. There is also the opportunity to save big money on child care. Having flexibility provides the opportunity to do what you want when you want, as opposed to the rigid demands of the outside workplace.

4. More satisfaction

Studies, like this one from ResearchGate, have shown that job satisfaction can increase with those who work remotely. To be fair, this satisfaction can also decrease the more you work at home. Plus, you can set up your workspace however you like, which is always satisfying.

5. Time for health and chores

Remote workers tend to have more flexibility when it comes to being active. It’s also no surprise that such individuals are healthier by being exposed to a cleaner workspace with fewer contagions from equipment or fellow employees. While you’re feeling good, check off the occasional chore when you want a break.

Bonus: Tax advantages

This really is the point here. Working at home in your own business allows for some seriously beneficial tax considerations. When you turn a hobby or other interest into a profitable business, you have the opportunity to deduct certain office expenses. These may include home office deductions like a portion of utilities and internet, cell phones used for business, equipment and supplies, depreciation of your home, vehicle purchases and mileage, travel and meals for business purposes, and much more. Take a look at an IRS Schedule C tax form to become familiar with such deductions.

Remember, deductions typically decrease your taxable income but you’ll need to prove the write-offs with receipts and explanations for each expense. Please check with an expert tax advisor regarding your situation.

Here are some disadvantages of working at home:

1. Discipline and laziness

Sleeping in, taking long lunches or naps, and binge-watching when you should be working are hazards for any remote worker. Don’t let these lazy pitfalls become problems.

2. Boredom and loneliness

Sometimes working by yourself gets a little dull. Without some excitement, we can start working slowly or spend too much time on things that don’t matter. Be sure to maintain a good social circle and engage others when you can.

3. Improper equipment and services

If you need a good printer or better wi-fi, you’re the one who gets to pay for it. Don’t forget to keep the receipts for tax time. Yes, you can buy the new laptop you need for your business and write it off.

4. Lack of planning

It’s tempting to allow remote work to be spontaneous. However, like any project or business, a plan of action for the next day, week, month, and year should be in place. You should have a good idea of what you’ll be working on and when. Organize your work on a spreadsheet, calendar, or task management app. Productive people always have a plan.

5. Doing it all

When you’re the one responsible for your success, you can end up wearing a lot of hats. Keep in mind that you don’t have to do everything. Not into social media marketing? Despise delivering items to customers? While it’s good to learn new skills and understand every part of your business, it’s okay to ask for help. There are lots of resources and services which can assist with different tasks along the way. Try to delegate things which keep you from doing the most important stuff.

As you think about remote work, try to remember that we are each wired differently and succeed in varied environments.

Working from home is a great option if you’re self-driven, can follow a schedule with discipline, appreciate few interruptions, and have a variety of abilities.

However, if you need more social time and are motivated by working with others and interacting as a team to get things done, it’s possible that being at a regular place of employment or starting a retail business may be better for you.

When it comes to the money you can make from home, the only limitation is you and your desire to succeed.