War Chest vs Day Rate vs Monthly Outgoings

[JIG1]

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....

[jamesbrown]

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

Sasguru: ~0

[malvolio]

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.

[kaiser78]

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 ?

[Wilmslow]

1. 400
2. Peanuts

[Bean]

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?

[cojak]

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.

[northernladuk]

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

You posted it in General so most definitely the latter.

[ladymuck]

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.

[DoctorStrangelove]

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.