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10 Ways to Save Money Setting Up a Home Office

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Whether you started working from home in 2020 or are just now looking into it, use these ten tips to save money on your at-home office and workspace. 

#1. Use Furniture and Equipment That You Already Own

If you are working from home, the first thing you want to do is see what you already have on hand. There is no point in buying something new if you do not need it. 

Think about whether something can be repurposed.

  • Do you have an old kitchen table you can reuse as a desk.? 
  • Can you use a box or stack of books to create a standing desk?

Likely, you already have some items that can be used in a pinch. Once you know what you have, you can figure out what you need.

#2. Ask Your Employer for a Reimbursement

Certain states in the U.S. require companies to cover home office costs. If you live in or your company is based in California, the District of Columbia (Washington D.C.), Illinois, Iowa, Massachusetts, Montana, or New York, you may be able to get a reimbursement. 

You may have heard of deducting office expenses from taxes. However, this only applies if you are self-employed. You cannot deduct these expenses from your taxes if you work for a company.

#3. Deduct Your Home Office from Your Taxes

If you are self-employed, you will deduct some expenses from your taxes. It is essential to talk to a tax specialist to determine what fees you can and cannot remove. 

For instance, if your computer breaks down and you need a new one, that counts. However, if you do not need a new computer and want one, you may be able to get it deducted, but you might also get audited. 

Office space can only be deducted if you have a dedicated room. Sometimes you can remove a portion of a room, but you will be more likely to be audited again. 

The key to deducting from your taxes is to show that the item or items are being used for work purposes. Ideally, the space and items will be work only. 

#4. Keep a List of Things You Need to Buy

You figured out what you already have; now it is time for the things you need. Make a list and keep it on hand. This way, you can keep your eye out for sales on those things. When you buy something, mark it off the list.

If you are self-employed and hoping to get a tax break, make sure to make a list of everything you buy, where you bought it, and how much you spent. Keep receipts for proof in case you do get audited. Ideally, these receipts will show only the work items bought.

If you are looking for reimbursement from an employer, you will also need receipts. In this case, you will want a list of items purchased to mark off which ones you got reimbursed for. This way, in the future, you know what your company will and will not return. 

#5. Shop Sales Online

Sign up for email notifications with all the local office supply stores and any stores or websites to buy what you need. Check your email every day to see who might be having a sale and whether something you need is on sale.

If you see that something you need is on sale, buy it. To help you save money, set aside money each week or month so that when the deals pop up, you can buy something without using credit.

#6. Print in Black and White

Color printing may be more beautiful, but it is also more costly. To save a little money, print documents in black and white whenever possible. You can also save money by using an inkjet printer. If you do not have one, put it on your list and watch for sales.

Another way to save money for printing is to print at your local library. Local libraries often offer patrons a set number of pages that can be published. Some libraries even provide a set balance that can be used for printing. Either way, you can save a little money by printing at a library.

Lastly, print double-sided if you can. Double-sided printing uses less paper which is better for the environment and better for your wallet.

#7. Buy Used Items

Another way to save if you need something now, but it is not on sale, is to look for a used one. You can buy used ones on Amazon, eBay, auctions, secondhand stores, and more. 

You can also join a local Swap Group or Buy Nothing Group and see if anyone has what you need. When it comes to these groups, you often need to pick up the item. Ask a friend or family member to help you if you need to.

#8. Use Free Software

Chances are you already have software and programs on your computer. However, if you need one that you don’t already have, look for a free version. If a free version is not available, look for a cheaper version. 

How to Set Up a Home Office on a Budget – Organization Ideas & Tips

Alternatively, you may find that you need to cut costs on something else to purchase a program. Google docs and Google drive are good free word processing programs. They are also compatible with Microsoft and Apple. 

#9. Buy Energy-Efficient Items

Buying energy-efficient items can also help you save money in the long run. Keep in mind that if you already have the thing and it works, buying a newer energy-efficient item will not save you money initially. 

If you already own something, add the energy-efficient version that you want to your list of things to buy and save up. However, if you do not already own the item, then purchase it now if you need it. Wait and save money for the item if the need is not urgent.

Other ways to save money on energy and utilities include the following.

  • Turning off or unplugging things when they are not in use
  • Taking shorter showers and taking fewer showers
  • Wearing layers, so you don’t have to have the heater on all the time

There are many more ways to save money while working from home, including the next item on our list.

#10. Make Use of Natural Light

When working from home, take advantage of any natural lighting you may have. This will help you save money on electricity. At first, it may seem inconsequential, but as time goes by, you will see savings.

Try to work during the daylight hours, if you must work at night, try setting up your lights for maximum efficiency. 

Lastly, you can save money while working from home by cooking more at home. Use the time you save by not commuting to work to cook a hearty breakfast, lunch, and dinner. The less you spend on eating out, the more you will save.

Final Thoughts

Whether you want to save a lot or save a little, these ten tips will get you started. Do not worry about doing them all at once. Pick one or two to start and then keep adding. You will save yourself a bundle in no time.

Image Credit: Studioroman

How to Tackle Debt with a Minimum Wage Job

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When you’re working for minimum wage, tackling your debts can seem almost impossible – unless you know a few strategies.

Today, we’re going to tell you about some tried and true methods that can help you to take charge of your debts. This way you can get them resolved and start building a stellar credit score.

Consider a Financial Advisor

First off, consider a financial advisor. While the movies have led most of us to believe that financial advisors are only for the ultra-rich and for buying stocks, this is not the case. You should start taking advantage now.

Even if this is your first job, a single visit with a financial advisor can open you up to a world of options.

  • They can help you to set up a budget.
  • Let you know about opportunities from your job benefits that you should be taking.
  • Help you set up a proper strategy for dealing with your debt.

Financial advisors are there to help you to grow your money. This is why you need to get in touch with one as soon as possible.

It’s a definite advantage to have a pro on your side. Go in for a single session and you can see for yourself what a financial advisor can do for you.

Don’t Pay Too Many Debts at Once

One common mistake that can do you more damage than good is trying to pay off too many debts at once. It’s an honest mistake.

If you’ve got a lot of debts, the phone calls from those collectors can work you up into a panic. And you end up spreading your budget too thin trying to deal with it.

Don’t do this.

Instead, take the approach that will get the job done and save you the most money in the process. You’ll need to take a closer look at all of the debts that you have to identify which ones have the highest interest rates.

These are the ones that you want to target first. If you don’t, those small payments will get eaten up in the interest and you’ll be paying forever. Find the debt with the highest interest rate out of all of them and tackle it. When you’ve got that handled, move on to the next one, and so on.

If you don’t believe us, try calculating the yearly interest and compare it to those monthly payments you are making on all of your debts at the same time. You’ll find that the high interest is going to eat up most of your overall payments, so tackle that debt now before it gets you in more trouble!

Pay a Little Extra on the Highest-Interest Debt

Now that you’ve identified the nastiest debt on the list, you want to make sure that you can wipe it out as fast as possible. The way to do this is by paying just a little bit extra every time that you get paid.

Even just a few extra dollars per paycheck is going to eat up the total. In the long run, it will reduce the number of monthly payments due. Every little bit counts and it builds up over time, so tackle the highest interest debt first and go at it with a vengeance.

Autopay Can Help to Avoid Costly Mistakes

One of the easiest mistakes to make is to set up a solid monthly payment plan on your debts and then forget – or neglect – to follow through. The reasoning behind it is simple and sounds sensible on the surface. If the payments aren’t automatic, then the money will be there when you need it.

This is a strategy that can bite you, so you need to resist the urge to do this and set up autopay. Autopay is going to make sure payments get made and reduce temptation. If you are worried about autopayments tying up your account, then there is a simple solution.

Just get a second account. With a second account specifically for your debts, you can funnel a percentage of your paycheck to that account through direct deposit and keep your debt payment separated from your main account. You’ll still be paying the same amount, but you’ll have an independent account to keep worries to a minimum.

Autopay is your friend. Yes, it’s a little scary until you get used to it, but meeting those monthly payments is what is going to get you through this debt and build your credit so you’ve got to start trusting it now!

Take Advantage of Balance Transfers

Want to reduce your monthly payments in one fell swoop? This little ‘hack’ might be just what you need. If you have more than one credit card, then you need to check the interest rates for each. The goal here is simple.

If you have debts on one credit card that are at a higher interest rate than one of your other cards, consider paying that off so that the balance you owe is transferred to the card with the lower interest rate. This is commonly referred to as a balance transfer. Many cards offer a promotional 0% APR for balance transfers and this can be a godsend.

By moving the debts to where the interest rate is the lowest, you can greatly reduce what you will have to pay and make those monthly payments much more manageable in a single shot.

Remove Your Card Information from Online Stores

Impulse buys are the worst for setting us back financially. In this mighty information age, you can go online and find just about anything that you can imagine and buy it with a single click.

With great power, unfortunately, comes great culpability and so you need to cut back on your impulse spending NOW.

One simple way to do this is to log on to those stores that you tend to use the most and REMOVE your credit card information from them. If you need to buy something, you can always re-add your information, but at least this way you know that if temptation strikes then you’ve added some extra steps to the process.

Sometimes giving yourself a few extra minutes to think is all the time you need to make the right decision. So, cut out the temptation by getting your cards offline. Trust us on this one, you’ll thank us later!

Grab Some Extra Work Online

Getting yourself a ‘side gig’ is easy and can make a huge difference. Websites like Upwork, Guru, and Fiverr can give you access to small and even larger projects that you can do in your free time to earn some extra cash independent of your full-time job.

If you have a little talent as a writer or an artist, for instance, you can easily get some work on the side. But don’t fret if that is not the case. There are also data entry gigs, voice-work, and all kinds of other jobs.

https://www.listenmoneymatters.com/how-to-get-out-of-debt/

Best of all, you’ll be working from home and making your own hours!

So, if you want to get an edge in dealing with your debt, consider the good old-fashioned method of having an extra job on the side. You can deal with your debt faster and start back off with a clean slate.

In Review

Today, we’ve talked about how to tackle debt with a minimum wage job. As you can see, you’ve got a lot of options for getting the job done!

And for your records, here is the too-long-didn’t-ready summary:

  • Consider a financial advisor and avoid the mistake of paying off too many debts at once.
  • A better strategy is to tackle the high interest rates first and to pay a little extra on them now. This will help to avoid paying a LOT extra later.
  • Autopay can keep you on track and balance transfers can lower your overall interest, just be sure to take your credit information away from retail stores so that you can stick to the plan.
  • Finally, consider a side-gig for now until you can get a better handle on things.

Paying off your debt is an uphill climb. But if you use the tips that you’ve learned today then you’re going to be just fine. Set up a debt-payment strategy using what you’ve learned today and you can see for yourself what a difference it can make.

Stop worrying… You’ve got this!

Image credit:[KAROLINA GRABOWSKA]

How You Can Use a Sinking Fund

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A sinking fund is a simple budgeting method that allows you to prepare in advance for future purchases and allocate a certain amount each month or week to pay for these. 

Have you ever felt like sinking into the ground after splashing out on a long-desired purchase? Let’s face it, we’ve all been there. A sinking fund can help you be prepared for larger expenses.

What Is a Sinking Fund? 

Dave Ramsey, a well-known financial advisor has suggested using the sinking fund method.

How exactly does a sinking fund work? 

Let’s say you are looking to buy that $1,000 laptop – for your spouse, of course – by Christmas.

  • If it is April, a sinking fund has 8 months left to work its magic.
  • Divide $1,000 by those 8 months and you get a set amount of $125 to put aside per month for that category. 

Is a Sinking Fund the Same as General Savings? 

Unlike general savings, a sinking fund gives you a specific purchase goal and a way to get there.  

Savings accounts may be used for anything under the sun. Whereas a sinking fund is an allocated amount of money intentionally set aside to pay for, say, that outfit for a friends’ wedding, or new tires.

What About My Emergency Fund | Does That Need To Change? 

A sinking fund can be a game-changer, but may not be as crucial as 3-6 months saved in an emergency fund.

Basically, an emergency fund is a safety net for the unknown expenses that life may throw. A sinking fund is a deliberate saving for a known and specific cause. 

How Does a Sinking Fund Fit on a Budget? 

It may be as simple as adding a line to your budget and reallocating expenses from there, depending on what you are saving for. 

The following are 4 key steps to implementing a sinking fund: 

1. Identify What You Are Saving For

Identifying what the purchase is and the exact cost has to be step number one. Larger expenses such as roof repairs or family vacation are a good idea to prepare for months in advance. 

2. Choose Where Your Fund Will Be

Whether in the form of an envelope of cash or an interest-bearing savings account, a sinking fund gives you the flexibility to control the amount kept aside. 

However, be mindful of bank fees if you create a specified account, as these can inch up your expenses over time.

On the other hand, if you decide to keep a fund in the form of physical cash, ensure the security and the safety of where that will be stored.  

3. Decide How Much To Save 

It is necessary to decide how much you need and how much you are prepared to save. Take that total amount and divide it between the number of months or weeks you have left before the purchase date.  

https://www.forbes.com/sites/jimwang/2020/01/24/6-reasons-to-start-a-sinking-fund-now/

You can also decide what months you will or won’t have enough left over to devote funds. This allows for flexibility if you are a variable income earner. 

4. Add a Line To Your Budget

Regardless of what kind of budget you have, by adding a row or line specifically for your monthly or weekly payments towards your end purchase, a sinking fund can easily be implemented. 

Having a sinking fund does not have to, and, ideally, should not replace debt repayments, savings, or emergency funds.

A Simple Method

Starting a sinking fund is a simple and transparent means of regaining better control overspending, and keeping some certainty over the future. Avoiding credit debts and loan repayments can alleviate worry and guilt, and elevate your peace of mind.