War chests

[s2budd]

been benched almost 7 months but have around £310k net cash reserves remaining...I learned my lesson in 2001/2 which was extremely rough for me...

Well done that guy. Lesson learned and not forgotten.
I do not have much of a war chest any more due to being off since November 2008. Things have been available but very poor rates in general. My mortgage to paid off though and the Mrs is working so enjoying myself and learning new things.

[moorfield]

£310k net cash reserves

Good effort, but how on earth are you going to get all of that out?

[The Lone Gunman]

It is not easy to run a war chest. It is not easy to build one up either.
Do not be alarmed if you do not have one.
You just need to be aware of the limitations and options you have.
This subject has been discussed before and everybody has their own way of coping.

It is better if you have reserves somewhere.
I try and keep 6 months costs in my personal account (cover all monthly bills). I also try and keep 12 months wages in the company account.
I only pay divvies out once or twice a year and only once I have a confirmed contract to cover the next accounting period.

I did spend a 9 month period with no company income which depleted the resources somewhat.

Having a war chest is more about peace of mind than anything else. If it all turns to tulip you will be able to ride it out, but whatever happens you will survive somehow.

[HeadOfTesting]

Good effort, but how on earth are you going to get all of that out?

it's out already

like I said - net cash reserves

[HeadOfTesting]

Well done that guy. Lesson learned and not forgotten.
I do not have much of a war chest any more due to being off since November 2008. Things have been available but very poor rates in general. My mortgage to paid off though and the Mrs is working so enjoying myself and learning new things.

yep - the experience will stay with me until the day I die

I do think that spending is highly habitual and if you have to get out of the habit completely as I had to in 2001/2 - not that I ever bought flash stuff, I just over-committed to tech shares and lost it all - then it can actually be hard to get back in to the spending habit. This is what happened to me - hence the war chest.

[nomadd]

Just out of curiousity... whilst on the bench ... how much are you paying yourself?

Basic salary is £20k for me. I'm renting a place cheaply, so fortunately that salary covers all my bills - only just, though. No wife/kids to support either, which helps a lot. I also haven't paid a dividend for 3 years now, after having run out of cash last time I was out of contract.

Nomadd

[slickcontractor]

been benched almost 7 months but have around £310k net cash reserves remaining...I learned my lesson in 2001/2 which was extremely rough for me...

Good effort. i wish i had that much. I have prob 80k reserve and also had a bad experience and learnt to save for that rainy day. Maybe one day i'll have a pile like yours

[Peter Loew]

Good effort. i wish i had that much. I have prob 80k reserve and also had a bad experience and learnt to save for that rainy day. Maybe one day i'll have a pile like yours

I second that. I only have around 70k - 80k reserve (I'm 30, contracting for only 3.5 years) no mortgage, no wife, no kids, no debt and a whole lotta time on my hands right now.

Somebody throw me the towel.

[slickcontractor]

I second that. I only have around 70k - 80k reserve (I'm 30, contracting for only 3.5 years) no mortgage, no wife, no kids, no debt and a whole lotta time on my hands right now.

Somebody throw me the towel.

unfortunatley for me i hav a nagging missus and a nagging daughter. They are a double act but no mortgage but i do have property abroad so

[ChimpMaster]

I second that. I only have around 70k - 80k reserve (I'm 30, contracting for only 3.5 years) no mortgage, no wife, no kids, no debt and a whole lotta time on my hands right now.

Somebody throw me the towel.

That 80k won't get you very far once you have a wife and kids!

But HeadofTesting - wow 310k built up in 7 years, best make sure the taxman isn't reading this thread or he'll try getting his grubby hands on it.