The Cost of Working From Home: Can You Afford It?

The idea of working from home is quite appealing to a number of people. The opportunity offers independence, a more comfortable working environment, flexible hours, and a broad pay range, but there are many who believe that they simply cannot make the jump and take the risk. Usually, what they cite as their main source of apprehension are the costs associated with working at home, but what they may not realize is that the price isn’t as steep as they expect. If you are considering turning a new leaf and working from home, it’s important to know upfront that it won’t cost you nearly as much as you might expect in making this important career change.

The first cost to consider is time. More likely than not, you will not be able to simply drop your current job and make a clean break—it will be a process that may take anywhere from a week to a few months. The important thing to remember, though, is that you don’t want to make the change too quickly to too slowly. Plunging in too fast or taking too much time to make the switch creates stress and makes the process far too difficult, costing you frustration and headaches. Additionally, if you don’t take the appropriate amount of time, or if you take too much, it could end up costing you more money than you expected. It’s crucial, then, that you plan ahead and set a deadline for beginning your new job at home.

The second cost to consider is for actual hardware. Depending on the type of work you have, you may need a number of items:

• Workspace with desk and chair
• Computer and printer
• Cable/DSL internet
• Fax machine
• Cell phone/land line
• Miscellaneous office supplies

As you first begin working from home, minimal is a good thing. For example, use the things that you already have, and if you don’t already own a fax machine or a comfortable desk chair, buy used instead of new (Craigslist.com is a great place to find used office furniture and electronics). You shouldn’t spend more than what you expect to make in your first month—why go into debt when you find what you need cheaper by taking a little extra time?

Finally, the last cost to consider is the low revenue earned during start-up time. It’s expected that during your first few months of being in business, your revenue won’t be as high as it will eventually be. All it takes, though, is just a few months of preparation and saving to combat the money lost. Before you even begin setting a date to start business, you should already be putting back extra money in order to cover the initial expenses.

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