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We are officialy in the last week of the financial year 🙈
The end of the financial year is also the half-way point in the calendar year. It can be a good time to take a little time out to reflect on the year that was. Give yourself a pat on the back for the work you are doing and what you have achieved. And also look for areas in your business and work where you might like to re-evaluate and do things better.
One of those areas that you might like to improve on is your finances. If you’d like some help to get your financial house in order, you’re in the right place!
Here are some financial tips to consider as we approach the end of the financial year.
💸 An important thing to remember is that the JobKeeper payments need to go into this years tax return. You will have received up to 2 payments totalling $6,000 that needs to go into your 2020 tax return (and then another 4 payments will go into your 2021 tax return). You will potentially need to pay tax on this (depending on what else you have earned during the year), so it’s a good idea to put some money aside to help pay for your tax bill. 10% is usually a good amount.
💸 The JobKeeper payments will continue until September. Now that you might be teaching and bringing in more income to your business again, it is a good idea to save some of your JobKeeper, rather than over-spending.
💸 A good sign of financial health is to have a ‘buffer’ of at least 3 months of living costs put aside in case of emergency. You know, things like pandemics, health issues or relationship breakdowns. Saving some of your JobKeeper payments to put towards a buffer would be a #1 priority.
💸 If you already have a buffer, you could consider putting some of your JobKeeper payments towards paying off debt, investing or depositing into superannuation.
End of financial year
💸 If you have a potential tax bill looming, a great way to help reduce the tax you have to pay is to bring forward some of your expenses. What this means is, if you are planning on purchasing something, or needing something in your business, if you make that spend before 30 June, you will get to claim it as a tax deduction in your 2020 tax return, thus reducing your taxable income and therefore the amount of tax you have to pay.
💸 There is currently an immediate asset write off of $150,000 available, meaning that you can purchase an asset up to this amount and be able to claim the whole amount in your 2020 tax return (normally you have to depreciate it over several returns).
💸 If you have an open quote with me, now is a good time to lock that in so that you can get the tax deduction this year!
💸 As a business owner you don’t have someone paying superannuation on your behalf. If you deposit some superannuation into your account before 30 June (and your taxable income is less than $37k), the Government will deposit up to an extra $500 into your fund. Depositing $3,325 will get you the maximum $500.
💸 If you’ve been looking for something to help sort your money, getting set up on an accounting package like Quickbooks can make your financial life much simpler. This time of year is the best time to get started and I can get you started on Quickbooks from as little as $14 a month. This includes a 30% lifetime discount I get from Quickbooks and pass onto my clients.
Heal.Thy Money is here to help you shine brighter and be of your highest service by enabling you to simplify and take control of your finances, rather than them controlling you. Let’s take the stress and worry around money out of the equation. I’m an instructor and conscious entrepreneur myself, so know your industry and space from the inside out.
Book a complimentary Money Health Check to see how we might be able to help you.