Has contracting made you lose perspective on money?

[lukemg]

Happens at all levels and also depends on peer group/location.
If you earn 50k everyone else is on 25, you feel very rich. Everyone else is on 100, you feel poor, you're amount hasn't changed, perception has.
I really love not having to think about small money, even holidays within reason don't cause a blip BUT a few years ago when the wheels fell off my skills and I hit with a bump it felt awful having to think about groceries etc. Now I am back in the game I REALLY do appreciate it and expend significant effort, thought and money to make sure I NEVER have to go back to that.
If you aren't dong this/thinking about Plan B + the end game, you better start....

[d000hg]

I think not only the higher amounts we tend to earn, but the fact we're dealing with our money more directly, both contribute to this - it's certainly something I've noticed.

It's not normal to look at your bank account and see 5-6 figures looking back at you... permies might have such savings but they'd be in ISAs or other investment vehicles, which seem less 'real'. Whereas we send an invoice for up to £10k a month and can see all that money sitting in the company current account waiting to be taken out.

It does (to me any way) desensitise you - I'm worried if my personal current account has <£2k in it.

[kmge]

I feel incredibly lucky. When I look back at what I used to do, 12 hour shifts (days and nights). Working Bank Holidays, Christmas and New Year as part of that pattern and taking home in a year less than I invoice for 8 weeks.

Contracting has enabled me to buy a very nice house, drive a very nice car, take at least three foreign holidays a year and if I want something I buy it without thinking about it.

Have I lost perspective on money? No I don’t think so. My upbringing means that I value the ability to do all those things. I was taught to “cut my cloth according”. If you have the money enjoy it, but put some away for a rainy day while you can. If you don’t have the money, don’t spend it on the never-never and bemoan the fact that you have to pay it back plus a ludicrous interest rate. Or worse still not be able to pay it back and suffer the ignominy.

[BrilloPad]

It sucks. But only because I work in the city.

[SpontaneousOrder]

Did the school run this morning, stayed and chatted with a few of the yummy mummy's and one got a phone call from her partner, seems it was pay day and they were excited as this months wages were a little higher than they expected, due to her having no boundaries it came out quite quickly how much was in, and I worked out the total was less than two days billing, not quite sure what the extra was but would have probably been an hours work.

I am now sat here in a huff that I am getting an extra 4 days billing because ClientCo wants me to start Tuesday rather than a week later.

Now when it comes to the kids, they don't see that I earn all this money, they know they have everything the need, but not everything they want, so I try to install the value of things on them at an early age, I don't flash the cash around, my car is getting more and more battered, I give to charity where I can, I don't have designer clothes (although gadgets are another thing), if there is something I want I go and buy it without questioning the price, I treat myself to nice meals and good wine.

But do I truly appreciate how lucky were are as contractors?

I'm not sure I earn well due to luck. Perhaps I can say that I'm lucky to have had parents that, although on minimum wages, instilled in me the idea that I can achieve - not every kid grows up thinking that they can be of any value.

That aside though - luck has nothing to do with it.

[vwdan]

Honest answer? There's not a week goes by where my Mrs and I don't have a conversation about how lucky we feel and how nice it is not having to count pennies all the time. I'm fairly young into it (Started 14 months ago at 27), so I remember pretty vividly a few years back when we first moved in together and at one point had a spreadsheet where we itemised EVERY purchase and EVERY bill. I mean that literally - down to buying a chocolate bar. My wife had also left her previous relationship which some exceptional debt, and I hadn't exactly been great.

Don't get me wrong, we were never in poverty and this certainly isn't a sympathy post - but to come from that to this (Including being debt free) in the space of 5 years or so feels damn good so I don't feel our perspective has been ruined yet.

With that said, the reason I got here was because I was always a money focussed, career driven mercenary.

[PurpleGorilla]

I give generously to charity and help family out where I can too. But I keep overheads nice and low to keep the risk down and try to max our ISAs each year. Cash gives options. And it gives freedom.

[SpontaneousOrder]

that is key, plenty of nice people who work really hard for peanuts. Yes we followed the right path and sacrificed a little bit on the way but we started with a good brain and motivation.

This arrogance of I deserve X because "I am so much better" on here is really annoying and farcical when you see someone who is low paid that is so much better than you at something.

Being good at something is not the same as being valuable to people. There are lots of things I'm good at which come easily to me. I work very hard to be good at something which doesn't - because thats where, in thise case, the value is created.

Physical graft is easy - animals can do it. Mindfully adding value is what distinguishes productive men from glorified animals.

And then some people are just inherently less capable. That's fine - but I won't consider myself lucky for reaping the rewards of very hard, yet mindful, work. In that situation, then it's perfectly reasonable to suggest that you are, in fact, 'so much better'. The fact of reality is that some people are worth more than others - because they are better (when it comes to addign value that people are willing to pay for).

[eek]

I read a comment yesterday (could be hackernews but I can't remember) that the only person you should take income with is the person paying your wages / invoices...

This week I've paid for the coffee run 3 times. On wednesday because I'm carrying cash and it was easier, today because they spent their money yesterday on Mrs Eek's chocolates. As I pointed out when the permies complained it doesn't matter....

[SpontaneousOrder]

so I remember pretty vividly a few years back when we first moved in together and at one point had a spreadsheet where we itemised EVERY purchase and EVERY bill. I mean that literally - down to buying a chocolate bar.[/QUOTE]

Not to dismiss the great contrast, but also bear in mind that pretty much everyone starts off like that and 5 or 10 years later things are often very different.

I know my salary, and my other half's, doubled pretty much exactly by the timer our 5 year fixed rate mortgage had expired. Obviously some people stay on low wages forever - but those jobs really should be for the youngsters.