5 ways homeowners can manage their self-employed expenses in 2022

5 ways homeowners can manage their self-employed expenses in 2022

Managing expenses as your own boss might sound intimidating, but it actually has many upsides

If you work for yourself, you already know how stressful managing self-employment finances can be. Tack on having just gone through a global pandemic that isn’t over quite yet and stress levels are bound to soar. There is an upside, though. There’s freedom in having complete control over your expenses and a myriad of ways to get curious and creative with how you’re managing them this year.

Looking for additional funds to start a new business or support your existing one? Searching for adequate financial assistance or hoping to engage with the housing market and make money? Alpine Credits simplifies financial planning for self-employed individuals and may be your answer. Here are five ways you can manage your expenses as a business owner or self-employed individual.

Look outside of the traditional bank loan system 

There are many benefits to being self-employed, but you’ll soon find that nailing down a self-employment loan is tough if you need to borrow money. Most banks require seeing a stable income over a certain period of time, which any self-employed person knows isn’t always possible. Lucky for you, the bank isn’t the only place to get access to the funds you need for your business to flourish. Alpine Credits is an excellent alternative to banks and traditional financial institutions; their lending parameters are the same for both the self-employed and full-time employees, and they focus on the amount of equity you have in your home rather than your income.

Leverage your home equity

The housing market in Toronto and across Ontario is dire—but that could mean good things for your future home equity loan. A home equity loan lets you borrow finances against the value of your home. A simple way to figure out your home’s worth: take your home’s current market value and subtract how much you owe on your mortgage. Equity grows both through paying down your mortgage and natural appreciation when the housing market is robust, as it is now. Whether you need a loan for your business or personal needs, Alpine Credits will look at your home equity amount to help you access the funds you need. Borrowing against your equity is considered low risk, meaning low investment risks and even lower interest payments.

Consolidate your debt

It’s no secret that Toronto is one of the most expensive cities in Canada to live in, adding to the growing debt that the average Canadian is accumulating. But living in Toronto has its perks—especially for self-employed people in specific industries—and debt doesn’t mean you have to pick up and leave. There’s a solution, and it’s debt consolidation. Alpine Credits offers homeowners, like you, a few ways to manage your debt more efficiently and ultimately save you money in the long run. Debt consolidation loans allow you to combine multiple loan payments into a single monthly payment. A necessity for many who’ve fallen on hard times during the pandemic, these kinds of loans are also great if you’re looking to make expense payments simpler and possibly at a lower interest rate than your initial debt. It can even help improve your credit score and give you peace of mind. 

Take advantage of tax deductions

If you’re self-employed, there are a few things you can’t write off as a business expense, which helps reduce the amount of taxes you have to pay during tax season. There are obvious business expenses, like office software, a new computer and advertising materials for your business, but don’t forget about meals and entertainment, travel expenses, and your mortgage and loan interest. Just make sure to keep records and receipts to keep the CRA happy.

Monitor your cash flow and stay organized

The best way to reduce financial stress is to be constantly aware of what money is coming in and where it’s going. Monitoring your cash flow daily or weekly will take the anxiety out of month-end bill payments and show you where you’re getting the best dollar return and, thus, where to invest more time and money. Once you have enough cash flow data collected for your own finances, you’ll be able to see the bigger picture of your business or personal expenses.

Click here to learn more about Alpine Credits and apply for a home equity loan today.