Being your own boss requires a completely different skill set to an employee. There’s paying wages, superannuation, managing staff and employment contracts. The same goes for self-employed home loan deposit. Saving for a home loan deposit when self-employed is another kettle of fish. And it’s one that we are well versed in.
When self-employed, banking on that same paycheck every week or month is a juggling act. When employed, we know the exact dollar amount that is going to hit our bank account every week. When self-employed, that figure can jump around like nobody’s business. One week the cash can be flowing in, the next you are scrimping for coins for fuel. Your income is variant.
The problems with the big banks is that they do not like to see variance. They like the same – and then more of it. They want to see a steady paycheck lodged every week tied up in a neat little bow. We understand, for the self-employed, sometimes it is just not that simple.
So how can you, as your own boss, increase your chances of saving for a self-employed home loan deposit?
- Save!
We know this sounds easier said than done. But the best chance you have of showing us you are a safe bet is by showing us your dosh! When you have those great weeks, save that money. Don’t go and celebrate on a fancy dinner or a new outfit. Pop it straight into a high interest savings account.
- Set a Goal
The same way successful people set themselves goals every single day, set yourself a savings goal. How much is a home in the area you want to live? Work out how much deposit you need (work off 20% to be safe and for wriggle room) and set it as a savings goal. Break it down into manageable pieces. Cross it off in your diary or your iCal every time you reach a milestone. Write it on the walls – your fridge – anywhere that will inspire you!
- Use Being Self-Employed to your Advantage
There are many tax breaks for being self-employed such as home office expenses, educational expenses and much more. Chat to your accountant about the tax breaks you can tap into – they will all help towards your savings goal!
- Take out Income Insurance
There is more reliance on your good health when self-employed. If you are injured or sick and cannot work, income protection will help cover your lost income. Remember to ensure your best asset – you!
So if you are looking for tips to save for a self-employed home loan deposit, get in touch with us today. We specialise in helping those who are their own boss to also own their own home.
