For the people that went permanent in the recent past - how is it going?

[TheDude]

What do you guys spend money on? Is it just the mortgage/kids or do you have fancy hobbies and expensive taste?

When I was a permie the contractors that like to shout about their income/lifestyle used to spend it on sports cars and aviation.

[PCTNN]

When I was a permie the contractors that like to shout about their income/lifestyle used to spend it on sports cars and aviation.

Now that you mention that, on the first day of my contracting career I met this guy in my team. He was a seasoned contractor and when he understood it was my first contract he told me "Son, don't go on and spend it all on useless cars and watches. Don't do like a friend of mine who bought an aston martin after his first contract and now has got creditors all up his arse"

[WTFH]

I went permie in January 2020, it saw me through the pandemic which was lucky. I got to June 2021 and got sick of just scraping by each month, not being able to afford meals out with the family etc, and couldnt take it anymore and went back contracting.

OK, there's something very iffy about this story, or you're not that good a contractor.

Most contractors will have a warchest, which ideally allows for no work for at least 6 months. If you couldn't last 18 months while earning earning money then that tells me you're living way outside your means.

[PCTNN]

that tells me you're living way outside your means.

Well yes he did say he took out a massive mortgage.

I think in general it's a reckless behaviour to live like the gravy train would never stop because the time you're out of work for 3 months or the time you only manage to find a contract paying 100 quid a day less then you're screwed.

It's not just contractors though; I've found a similar type of thinking in the uk in general, in particular when we talk about houses and mortgages which is obviously the highest expense in most households. When looking for a house most folks think ok my earnings are X per year, I'll be able to borrow 5X and off they go looking for houses at the top of their affordability. Very risky behaviour regardless of whether you're a contractor or a permie.

[silverlight1]

I can't help but feeling lucky that I don't have an expensive lifestyle and my expenses aren't so high I can't afford meals out or holidays.

I guess it's all about location and therefore mortgage expenses.

Here where I am (countryside in the outskirts of Edinburgh) I make less than the 92k a year mentioned here, and yet I have enough money to cover the mortgage of my 4 bed detached house and all my expenses (mainly bikes and meals out, no other fancy hobbies). I'm even considering going down to 4 days a week in a few months so I'll be able to spend time with family, help out my partner with the kid and in general enjoy my time on earth a little bit more.

What do you guys spend money on? Is it just the mortgage/kids or do you have fancy hobbies and expensive taste?

I remember a few contracts I've had where the it looked like a supercar rally every morning as the contractors rocked up in their flashy motors

Although I've no school fees its expensive raising 3 kids and that said my only extragavancges are an ageing 911 and ski holidays

[Dark Black]

Currently have a permie offer for a hybrid role from a previous client (a few contracts back) on an OK-ish salary (reasonable overall package though), and another offer for a fully remote, Inside contract on a poor rate (as in less than my usual Outside rate).

What I don't have is the third, preferred option of a decent Outside contract .

I don't really want to go back permie (it's been 15+ years) but it seems like the best option of the two currently. Trying to make up my mind which to accept. War chest is seriously depleted now so don't have the option to wait around for a decent "proper" contract.

So, I've accepted the permie role. But even though I haven't started yet, I'm already dreading it. That's not a good sign really is it....

[JoJoGabor]

What do you guys spend money on? Is it just the mortgage/kids or do you have fancy hobbies and expensive taste?

550k mortgage, 3 kids, no private school fees, no decent car, cost of living in Surrey takes me up to about £4200pcm costs. So on my permie salary take home was a minimum of about £4800, some more in commission on a good month of sales. So it was tight as soon as you added in any kind of holiday or one off purchase. Contracting gives me at least £2k or £3k more a month so can afford a few more things. House renovations is the next big expenditure

[TheDude]

550k mortgage, 3 kids, no private school fees, no decent car, cost of living in Surrey takes me up to about £4200pcm costs. So on my permie salary take home was a minimum of about £4800, some more in commission on a good month of sales. So it was tight as soon as you added in any kind of holiday or one off purchase. Contracting gives me at least £2k or £3k more a month so can afford a few more things. House renovations is the next big expenditure

Ah, the squeezed middle....

[d000hg]

550k mortgage,

There go your holidays and luxuries even contracting then as interest rates climb I thought my 300k mortgage was scarily large.

[Antman]

Depends how long you've got to pay it off, it's all about the Munflies.