Are there Any Financial Benefits to Work From Home?
- Working from home can save you money by reducing or eliminating common expenses traditional employees face.
- Expect to spend less on transportation, your wardrobe, and lunches out.
- Use what you save to accomplish a financial goal, like paying off debt.
Remote work has been around for as long as we've had reliable internet access, but it really took off during the COVID-19 pandemic. Workers in many industries, some of whom had never worked from home before, got a chance to try it, with many reporting increased job satisfaction as a result.
Aside from enjoying comfy clothes and ditching your commute, working from home can also lead to some surprising savings.
If you're considering remote work, you'll definitely want to consider the following benefits to decide if it's right for you.
4 Ways You Could Save Money if You Work From Mome
The amount of money you could save by working from home depends on your situation. However, a study by FlexJobs found that the average worker can save up to $12,000 a year by working remotely. According to FlexJobs, if you work from home, you’re likely to spend less on the following.
1. Gas and car maintenance
When you work from home, there’s no need to get in your car and drive to and from work. Therefore, you’ll probably save a lot of cash on gas, especially if you are one of the Americans with an average commute of 26.4 minutes. Less time in the car also means less money spent on routine auto maintenance and repairs.
2. Coffee and lunches
It’s pretty common to swing through the Starbucks drive thru for a cup of joe on the way to work. Going out to lunch with coworkers is the norm as well. Even if you only go out to lunch three times a week and spend about $8 each time, you can save $96 per month or $1,152 per year by eating at home.
3. Professional wardrobe
If you don’t work in an office where you can get away with jeans and sweatshirts, you probably spend a lot of money on your professional wardrobe. After all, even business casual isn’t cheap, especially if you get your work clothes dry cleaned or laundered on a regular basis. The average American spends about $2,041 on apparel each year but if you work from home, you probably won’t spend anywhere near as much.
4. Taxes
If you’re an employee, check your state’s rules—some states allow you to deduct unreimbursed expenses. If you’re self-employed, you may qualify for a home office tax deduction. To be eligible for it, you have to use part of your home for work "exclusively on a regular basis." You don’t necessarily need a separate room but you do need to dedicate a certain area solely for work.
For example, a nook in the corner of your basement could make the cut as long as you don't use it for other household tasks. There are two deductions you may be able to use:
Standard deduction: With the standard deduction, you can deduct a portion of some overall expenses based on the area of your home that you use as your home office. If your home office is 8% of the total square footage of your home, you can deduct 8% off expenses like your mortgage, rent, or utilities.
Simplified deduction: The simplified deduction allows you to deduct $5 per square foot of your home office, up to 300 square feet, for a maximum deduction of $1,500. If you go this route, you won’t have to keep records of your particular expenses.
How to Save Even More Money When You Work From Home
Some of these savings will likely happen automatically when you begin to work from home. A few small lifestyle adjustments could help you save even more:
Pick up a side hustle. With a bit more time on your hands, you can look for other opportunities to earn cash outside your full-time job. You may want to deliver meals, mow lawns, sell a craft, or start any other side hustle that fits your interests.
Complete DIY repairs. When you’re busy, you may call someone up to fix a leaky toilet, replace a faucet, or install a light fixture. With more free time, you can watch some YouTube videos and take care of at least some of them on your own.
Work on meal prep in your spare time. When you work from home, you may be able to sneak in some dinner prep during the day. This can save you money instead of grabbing takeout on the way home from an office job because you’re short on time to shop and cook.
A work-from-home job could also benefit you in other non-monetary ways, like extra time to yourself or even improved mental health.
What to Do With the Money You Save While Working From Home
There's no one right way to spend the money you save when you work from home. Here are a few suggestions you may want to consider:
Pay off debt. Putting extra money toward debt repayment can help you improve your financial situation and maybe relieve some stress too. If you're struggling with debt and want some help, consider a debt relief program.
Build an emergency fund. An emergency fund helps you cover unexpected expenses, like a hospital bill or insurance deductible.
Educate yourself. Use the extra money you save by working from home to invest in higher education or a professional credential that could help you earn more money down the road.
Save for the future. Keep your savings in a high-yield savings account for a future goal, like a home purchase or a wedding. Or you could save it for retirement.
Debt relief by the numbers
We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during August 2025. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.
Credit card tradelines and debt relief
Ever wondered how many credit card accounts people have before seeking debt relief?
In August 2025, people seeking debt relief had some interesting trends in their credit card tradelines:
The average number of open tradelines was 14.
The average number of total tradelines was 23.
The average number of credit card tradelines was 7.
The average balance of credit card tradelines was $15,142.
Having many credit card accounts can complicate financial management. Especially when balances are high. If you’re feeling overwhelmed by the number of credit cards and the debt on them, know that you’re not alone. Seeking help can simplify your finances and put you on the path to recovery.
Personal loan balances – average debt by selected states
Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.
In August 2025, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.
Here's a quick look at the top five states by average personal loan balance.
| State | % with personal loan | Avg personal loan balance | Average personal loan original amount | Avg personal loan monthly payment |
|---|---|---|---|---|
| Massachusetts | 42% | $14,653 | $21,431 | $474 |
| Connecticut | 44% | $13,546 | $21,163 | $475 |
| New York | 37% | $13,499 | $20,464 | $447 |
| New Hampshire | 49% | $13,206 | $18,625 | $410 |
| Minnesota | 44% | $12,944 | $18,836 | $470 |
Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.
Tackle Financial Challenges
Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.
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Author Information
Written by
Kailey Hagen
Kailey is a CERTIFIED FINANCIAL PLANNER® Professional and has been writing about finance, including credit cards, banking, insurance, and retirement, since 2013. Her advice has been featured in major personal finance publications.
Reviewed by
Robin Hartill, CFP
Robin is a writer and reviewer for Freedom Debt Relief. She is a CERTIFIED FINANCIAL PLANNER™ and a longtime personal finance writer and editor.
Do you really save money working from home?
It's possible to save thousands of dollars per year when you work from home. This is because you don't have to spend money on expenses like gas, car maintenance, and professional clothing that traditional employees typically need to pay for.
What kind of job can I do from home?
You can do many jobs from home, including data entry, customer service, writing, translating, programming, and virtual assisting. Some of these jobs may be completely remote while others may be hybrid roles where you work some of the time at home and sometimes in the office.
Can I work from home with no experience?
It may be possible to work from home with no past experience, but it depends a lot on the job you want. If you don't have a background in computer programming, for example, you may have trouble getting a remote programming job simply because you lack the necessary expertise. If you have a long history of working as a programmer, this shouldn't be an obstacle. Some remote jobs, like data entry positions, typically don't require any past experience.