How much do you consider to be a decent war chest?

[Jacko_1975]

I just found out I'm at risk of redundancy and I've got till 8th March to find work in the company.
I have an strong possibility which is sort of appealing...but on the other hand I reckon could be in for a pay out of 20K.

Is this enough to support me in my quest to start up and become a contractor?
Dilemma is to play safe or take the risk...

[SimonMac]

I go on time rather than money, IE how long will my warchest last me?

£20k will probably last me well over a year as my commitments are quite low.

[JoJoGabor]

20k should be enough

[TheFaQQer]

I go on time rather than money, IE how long will my warchest last me?

WHS. If you blow £10k a month, then I'd suggest that £20k isn't enough at the moment.

Having had a stint of seven months between contracts a while back, I'd make sure you have plenty to survive on.

[Jacko_1975]

WHS. If you blow £10k a month, then I'd suggest that £20k isn't enough at the moment.

Having had a stint of seven months between contracts a while back, I'd make sure you have plenty to survive on.

I'm a permie with 2 kids so I don't live no playboy lifestyle, as I'm getting made redundant I should get my mortgage protection to kick in so I'm thinking about outgoings of £1500 per month.

Having said that I'd need to buy a new car & lap top (company car & pc) at the mo

[stek]

I had a 21k warchest last time I had a 'break' - after seven months I'd spent half of it.

Was always in shiiting myself mode though, I'm old school, feel not working is shameful!

[Scrag Meister]

£20k should be plenty to last you a few months as long as you don't go silly.

For me that should last in the region of 9 months with no cuts in lifestyle, more if I cut back on the luxuries.

My current warchest is about 40k pre paying CT so just over 30k, a year's worth I would expect.

GL with whatever happens.

[ChimpMaster]

Work out your monthly outgoings, consisting of bills that much be paid and social spending and luxury items. Include the essentials such as home/car insurances (obviously calculate the monthly cost if you pay annually).

Include every single fixed and variable cost you can think of - mobile phone, internet, gas/electric, petrol, maintenance, school fees, food, etc etc.

Then you can start to build up a financial picture of your lifestyle, and see exactly how much you need on a monthly basis. You can see how much you need to just survive (fixed costs) and how much extra for the luxuries.

Then you'll know how far your £20k will carry you.

This process will continue to prove useful as you become a contractor and plan your escape into financial freedom.

Damnit I should charge for my financial advice. Plan B perhaps?

[acontractor]

I got war chest which can last for atleast 4 months (no lux. just basics). My skills are asp.net with 4 years of experience.
I am flexible to go anywhere (except Up North ) for a contract role.

So is 4 months enogh in current climate or its too short?

[fullyautomatix]

If I was offered a redundancy payout of 20K and if my skills were pretty recent and latest techno skills I would go for it. But then, spend that 20K wisely and attempt to save as much of it as you can.