7 Steps to build that Home Loan deposit when you’re your own boss

When you’re self-employed you know only too well, your income can vary each month and that makes saving up for a home pretty tough going. If you really want to show potential lenders you’re a good candidate for a home loan, having a history of steady, regular savings is a really great place to start.

Here are seven ways you can amp up your ability to put that money aside:

1. Doing well? Save more

When things are going well and you’re earning more money, don’t be tempted to splash out and reward yourself – keep your eye on the bigger, more important goal you care about. Stash a good piece of that extra cash. The real reward is the bigger number in your interest earning savings account.

2. Set yourself a target

Work out where you want to live first, then calculate how much you need to save for a deposit in that area – and don’t forget to add on those extra costs like stamp duty and legal fees. Remember that, depending on the product you‘re applying for, different lenders may charge different fees. It’s technically possible to get a loan with a five per cent deposit, but hitting the 20 percent target will help you avoid extra fees. Once you have your target, write down your goal every day. Yes, every day! Keeping your goals at front of mind will help keep you accountable even when you’re faced with spending temptations.

3. Watch your progress

It’s not just kids that respond to visual reminders – we all do. Make a colourful wall chart of your savings target, so it reinforces the goal setting reminders you will write daily. Every day you will see how it grows, as you add each new amount to the top!

4. Be smart with taxes

If you’re self-employed, there are tax deductions for business related expenses that can really add up to help you save. These might include things like home office expenses, or the government’s small business tax concessions. In your business, treat yourself like an employee – pay enough tax and super so that the year’s tax return does not turn out to be a nasty surprise with a large unexpected tax debt. Let an IN8 Tax Professional help you with Single Touch Payroll to help plan your year’s taxes, or help you set up goal setting in your accounting package.

At IN8 Business Finance and FHG, we work together to ensure that your loan package and transactions maintain tax deductibility, according to current tax legislation.
To get good information about what you can claim, have a chat with an IN8 tax professional who can help.

5. Always put a little something away

A little goes a long way. When your income is different each month it can be tempting to only put money aside when you get large payments in. Everyone’s situation is unique but if you save a bit of what you earn every time you get paid,
you’re always working towards your own home target and you’re getting there one step at a time, every time.

6. Protect your income

If you can’t work because of injury or illness, income protection insurance can help cover for lost income, so you don’t use your deposit savings to live on. ASIC’s Money Smart website offers some good tips and information about income protection insurance that’s worth checking out. Make sure your business is covered also, for appropriate insurances.

7. Review Your Accounts Regularly

Do you know how to run basic reports to see how your business is travelling? Do you know what those reports actually mean, in terms of business success, or potential failure? Review your income and expense items. Can you increase your follow-up, and convert some enquirers of your services to become valued clients? What are your most profitable services? Can you run a simple promotion to increase your income? With the expenses, do you need all of your subscriptions? Are your staff productive? Should you be outsourcing some tasks? Are you paying too much for advertising?
Are you paying too high a rate in interest? With decades of business experience across a wide range of industries, at
IN8 Business Finance and IN8 Business Advisory, we have a range of programs to help you build your business, while building and safeguarding your family wealth. Call Reception on 1300 911 227 to make a no-obligation 15-minute Zoom consultation on your business.

If you’d like more information, talk to us today about how at IN8 Business Finance and FHG, we work together for you, to minimize your loan preparation and offer you the best deal for your situation. Call IN8 today on 0448 998 390.

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