War Chest vs Day Rate vs Monthly Outgoings War Chest vs Day Rate vs Monthly Outgoings
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  1. #1

    Nervous Newbie

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    Question War Chest vs Day Rate vs Monthly Outgoings

    Thought I would try something, which may work, or fail spectacularly!!

    I would be interested to gauge the size of other contractors war chests. Appreciate that very few people will want to give out specifics £ figures, so thought we could do it as:

    1. Ratio to day rate: so £40k war chest against £400 / day = 100
    2. Ratio to monthly personal outgoings: so £40k war chest against £4000 / month = 10

    I will start...

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    Don't all rush to answer....


  2. #2

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    How about IQ / ego. Let's call it the CUK golden cretin ratio.

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  3. #3

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    I won't, but you're being unnecessarily complicated, and starting from the wrong end.

    Mine was budgeted to cover 6 months without fee-earning work to cover all necessary personal bills and spending after taxes. In the event I once ran for 14 months on the bench, but that was exceptional: most gaps between gigs were 2-3 months. Once you have that six month buffer (or whatever you're happy with) then all else is bonus.
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  4. #4

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    Quote Originally Posted by JIG1 View Post
    Thought I would try something, which may work, or fail spectacularly!!

    I would be interested to gauge the size of other contractors war chests. Appreciate that very few people will want to give out specifics £ figures, so thought we could do it as:

    1. Ratio to day rate: so £40k war chest against £400 / day = 100
    2. Ratio to monthly personal outgoings: so £40k war chest against £4000 / month = 10

    I will start...

    1. 125
    2. 14

    Don't all rush to answer....

    For what reason may I ask ? My warchest fluctuates, as does day rate. So this will change from contract to contract and even whilst in contract. Should I average this out per contract or x month period ?
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  5. #5

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    1. 400
    2. Peanuts

  6. #6

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    Given there's been some rumblings about Hammond starting to try and target Ltd Director pension contributions, lifetime allowances & specifically, ER......is it going to be a viable strategy going forwards?
    Quote Originally Posted by Old Greg
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  7. #7

    Some things in Moderation

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    Quote Originally Posted by Bean View Post
    Given there's been some rumblings about Hammond starting to try and target Ltd Director pension contributions, lifetime allowances & specifically, ER......is it going to be a viable strategy going forwards?
    Now, that is a good question, and a better one to ask than the OP’s.

  8. #8

    My post count is Majestic

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    Quote Originally Posted by JIG1 View Post
    Thought I would try something, which may work, or fail spectacularly!!
    :
    You posted it in General so most definitely the latter.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  9. #9

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    ladymuck - scorchio!

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    Intrigued as to why you need to know this information.

    As mentioned above, I also aim to ensure 6 months of bills are covered (at least). I would never go to the bother of working it out as you have; it's a waste of time.

  10. #10

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    Stone me, I had an extensive warchest even as a permie.

    It saw me through 20 months of unemployment, though interest rates at the time meant I could live on the interest.

    Now I'm an it's even greater & assuming inflation doesn't reach 100% it ought to see me ok for a while.
    When the fun stops, STOP.

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