The freedom and flexibility of being able to work from home is something that many people are discovering. Having complete control over your workspace and (most times) your working hours is one of the many benefits of working from home. But while it is a joy to be earning money from the comforts of your home, you might also want to think about hidden costs and how to work that into your budget.

Tech
This is probably the most expensive hidden cost of all. A traditional workplace would have desktop PCs at every workstation. Some managers may even get a work laptop and a mobile phone (and line) assigned to them.

However, when you work from home, you need to have your own machine. If you’re a freelancer or you work from home exclusively, a desktop PC that is solely used for work purposes is a must. If you telecommute or work from home a few times a week, a laptop will help you with telecommuting.

These powerful machines (laptop and PC) generally have a 5-year lifespan, so practice good computer hygiene and get a good antivirus software. Sure, a good antivirus is another hidden cost, but it will help you keep your tech running for as long as possible AND also keep your all-important work files safe.

As for mobile phones, you can get a cheap phone that can be used exclusively for taking and making work calls and sending out work messages. Or you can get a phone that has a dual sim function if you want to keep your personal and business contacts separate

Internet
High-speed internet is not cheap BUT it gives you peace of mind. Upgrading to a high-speed internet will ensure that you can join those client video calls without worrying that you will drop out of the call.

A plan without a download cap is also worth considering, especially if you have large files being exchanged.

Office supplies
You can probably scrounge up the basics from around the house: a small desk to place your work items on, a trash bin to throw your rubbish into, some paper and pens. So those need not be additional costs.

At a traditional workplace you have access to a copier with unlimited copy paper as well as the little things like paper clips, markers, highlighters, post its, folders, and file boxes. While you can just buy these things on an as-needed basis, these are also hidden costs.

Overhead
When you work at a traditional workplace, the company pays for electricity and space. However, if you work from home, you have to shoulder those costs.

Telecommuters may opt to pay for membership at co-working spaces. This is an option for collaborative events or for ad-hoc teams and startups.

Holidays and sick leaves
Freelancers usually work on a per project basis or a no-work, no-pay arrangement. Therefore paid vacation leaves and sick leaves are not factored into your net pay. Vacations are usually out of pocket and illnesses and hospital visits are as well. You need to factor these into your budget as they are among hidden costs.

Did we miss anything? Let us know in the comments. Stay humble and hustle hard.

 

Written by Jaie O. The Help