How much do you consider to be a decent war chest? How much do you consider to be a decent war chest?
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  1. #1

    Nervous Newbie


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

    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...

  2. #2

    TykeLike

    SimonMac's Avatar
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    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.
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

  3. #3

    Fingers like lightning


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    20k should be enough

  4. #4

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    Quote Originally Posted by SimonMac View Post
    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.
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  5. #5

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    Quote Originally Posted by TheFaQQer View Post
    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

  6. #6

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    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!

  7. #7

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    £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.
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  8. #8

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    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?

  9. #9

    Should post faster


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    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?

  10. #10

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    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.

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