Warchests

[sira]

I haven't been contracting long, but used proceeds to clear debts and build-up a warchest to keep me going for 4-7 years (depending on spending). Whereas a few people I know spent it on big mortgages and flash cars.

I also sold my nice car and reverted back to my trusty VW polo to make myself recession proof.

I'll buy nice things once the gravy train gets moving again.

[BigJohn]

I haven't been contracting long, but used proceeds to clear debts and build-up a warchest to keep me going for 4-7 years (depending on spending). Whereas a few people I know spent it on big mortgages and flash cars.

I also sold my nice car and reverted back to my trusty VW polo to make myself recession proof.

I'll buy nice things once the gravy train gets moving again.

7 years is a long time. Not asking you to be too specific on the amount you believe could cover this but you didn’t mention how long it took to build, just saying “haven't been contracting long” could mean anything


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[PCTNN]

a few people I know spent it on big mortgages and flash cars.

This is something that currently is making me sick.

All I read on linkedin these days are sour comments from moany contractors about hmrc, blanket ir35 assessments. I mean, I hate hmrc myself and I am disappointed about big companies cutting contractors and/or doing blanket assessments.

What disgusts me is that a lot of these contractors cry like babies about how they can NOT afford to take a pay cut.

Even if they had to switch to umbrella AND keep the day rates they're currently on, they'd still be making way more than their permie counterparts.

Do they not have warchests? What do they spend their money on? Have they really been so short sighted that they went on and got big mortgages and cars and not saved anything?

I feel no compassion for them. Time to grow up and learn to be humble.

[edison]

This is something that currently is making me sick.

All I read on linkedin these days are sour comments from moany contractors about hmrc, blanket ir35 assessments. I mean, I hate hmrc myself and I am disappointed about big companies cutting contractors and/or doing blanket assessments.

What disgusts me is that a lot of these contractors cry like babies about how they can NOT afford to take a pay cut.

Even if they had to switch to umbrella AND keep the day rates they're currently on, they'd still be making way more than their permie counterparts.

Do they not have warchests? What do they spend their money on? Have they really been so short sighted that they went on and got big mortgages and cars and not saved anything?

I feel no compassion for them. Time to grow up and learn to be humble.

Yep, a lot of contractors are likely to be in that boat. One contractor friend of mine has been an FS contractor for at least 15 years, working with very few gaps. He's in a fairly senior role so I guess his day rate is around £700 or more. Yet, he cannot afford to last more than about 4 weeks on the bench. A couple of years ago, he bought an expensive second car for the family and within six months it had to go back as he couldn't afford it.

Another friend is on a day rate of almost £1000 and she starts to panic if she has a gap of more than 6 weeks.

These are probably extreme examples but I bet there will be a lot of long term permietractors who never saw the current market coming and they really will be up s**t creek.

[LadyPenelope]

Yep, a lot of contractors are likely to be in that boat. One contractor friend of mine has been an FS contractor for at least 15 years, working with very few gaps. He's in a fairly senior role so I guess his day rate is around £700 or more. Yet, he cannot afford to last more than about 4 weeks on the bench. A couple of years ago, he bought an expensive second car for the family and within six months it had to go back as he couldn't afford it.

Another friend is on a day rate of almost £1000 and she starts to panic if she has a gap of more than 6 weeks.

These are probably extreme examples but I bet there will be a lot of long term permietractors who never saw the current market coming and they really will be up s**t creek.

There were people like that at my last client. They would have been on generous day rates for the past two years at least, but when the programme was canned were shocked and started panicking. These weren't people who were starting out in contracting either. Surely they must have had plenty of money?

Also, you could see that the timescales kept slipping and little being delivered by the suppliers, so it was obvious from Easter that questions would have been asked.

[PCTNN]

These are probably extreme examples but I bet there will be a lot of long term permietractors who never saw the current market coming and they really will be up s**t creek.

Front-end dev, ex colleague of mine who worked as a contractor at a big bank for 2 years straight. Rate was good (£575 a day). Had an ex-wife and 2 kids but he didn't give them much money. He lived in a pretty deprived (and cheap) area, dressed almost exclusively in primark.

STILL, after his contract ended, he couldn't afford to stay on the bench so he had to take a permanent job after 1 month. For most of the time I've worked with him he was still taking wonga loans to get to the end of the month.

I really can't get my head around it.

How can some contractors be so unprepared?

[northernladuk]

Front-end dev, ex colleague of mine who worked as a contractor at a big bank for 2 years straight. Rate was good (£575 a day). Had an ex-wife and 2 kids but he didn't give them much money. He lived in a pretty deprived (and cheap) area, dressed almost exclusively in primark.

STILL, after his contract ended, he couldn't afford to stay on the bench so he had to take a permanent job after 1 month. For most of the time I've worked with him he was still taking wonga loans to get to the end of the month.

I really can't get my head around it.

How can some contractors be so unprepared?

Indeed. I've seen a grown man cry because a couple of us got canned early after 2 years+ as he'd spent it all including his tax money.

[BR14]

Indeed. I've seen a grown man cry because a couple of us got canned early after 2 years+ as he'd spent it all including his tax money.

Mearcat??

[Jolie]

Indeed. I've seen a grown man cry because a couple of us got canned early after 2 years+ as he'd spent it all including his tax money.

I am shocked! I can't believe there are people who think they can spend money that is not rightfully theirs.

I take less than half of my day rate, the rest stays in the account for taxes and war chest.

[northernladuk]

I am shocked! I can't believe there are people who think they can spend money that is not rightfully theirs.

I take less than half of my day rate, the rest stays in the account for taxes and war chest.

Stick around here for awhile. They pop up far too often.