Pay yourself fairly
Don’t feel guilty if you’re not reinvesting all your profits back into your business. Life is for living and you can’t live it without some money in your pocket.
Paying yourself a living wage can relieve some of the financial stress that comes with running a small business. And it helps reach other goals you might have.
If owning your own home is one of those goals, a regular wage helps you build savings and establish a savings pattern, a crucial piece of the puzzle when applying for a home loan.
You can choose to pay yourself a set weekly salary or a percentage of profits. Either way, just pay it.
Find your work/life balance
Burnout is real a real risk for small business owners. With so many hats to wear (we’re looking at you, sole traders), it’s easy to put yourself last on the list of priorities. Carve out some time for your personal life, regardless of whether you have a family.
By setting boundaries around your work hours and taking time off for some R & R, you’ll have the headspace to make better financial decisions and keep your personal financial goals in focus. A healthy business owner running a healthy business means more profits to channel towards your home deposit.
Plan for the long-term
Homeownership isn’t a short-term goal. It requires forward-thinking and careful planning.
If you’re a small business owner, try to look beyond the next sale. Where do you want your business to be in five or ten years? After all, your business’s long-term success is what’s going to fund your home deposit.
On the topic of a home deposit, think about how much you’ll need and what you’ll need to do in your business to reach it. This could mean increasing profit margins, cutting unnecessary costs, or diversifying your income streams.
Also, consider how scaling up your business could shorten your homeownership timeline. Could you invest in new equipment, hire more staff, or expand your services to bring in more revenue? The better your business does, the sooner you’ll be able to hit your savings goals.
Start saving for a home deposit
So, you’ve started paying yourself regularly and have a solid savings plan. Now it’s time to put your plan into action.
Set up a separate high-interest savings account specifically for your home deposit, like our Home Saver account with bonus interest and no monthly account fees. Transfer a percentage of your business profits into this account every month. Or set up an automatic transfer so it happens whether you remember or not. Consistency is key to reaching your goal.
While your savings grow, look into government schemes designed to help home buyers, such as the The Australian Government 5% Deposit Scheme. These incentives have helped thousands of people into their homes sooner.
Yes, the life of a small business owner can feel all-consuming. But remember, your business is there to help you reach your personal ambitions. One of those may be the keys to your very own home.
Remember to check out our Business Hub. You’ll find heaps of free resources and plenty of helpful information to keep your business humming.
