War chest

[contractor79]

Anyone else here living off a war chest?

How long will you live off the war chest before you make drastic changes in your lifestyle? For example, will you rent out your property and lodge somewhere? Do you refrain from taking holidays whilst on warchest?

Trouble is, it's so much joy living on a war chest doing no work. Spending is easy... but there is increasing fear the money will run out!

[gingerjedi]

Not me, I spent mine in 2009.

We've been running on empty for 3 months now yet somehow we get by? We had a tax rebate and a large share divi last month which helped keep the wolves from the door.

[TroubleAtMill]

Not me, I spent mine in 2009.

We've been running on empty for 3 months now yet somehow we get by? We had a tax rebate and a large share divi last month which helped keep the wolves from the door.

Excuse my ignorance of terminology, but doesn't being able to pay yourself divs mean you have a warchest?

[gingerjedi]

Excuse my ignorance of terminology, but doesn't being able to pay yourself divs mean you have a warchest?

No, it was from a management buyout that myself and wife invested in before she left her last job, the third dividend de-risked the investment in 2 years and we're on target for 20 fold return when they finally float.

Bloody skint at the moment though.

[rootsnall]

Anyone else here living off a war chest?

How long will you live off the war chest before you make drastic changes in your lifestyle? For example, will you rent out your property and lodge somewhere? Do you refrain from taking holidays whilst on warchest?

Trouble is, it's so much joy living on a war chest doing no work. Spending is easy... but there is increasing fear the money will run out!

The same dilema here, not a sniff of a job in 2 months or so of looking and the first time I've been quite worried about my job prospects since 2003. I've got a healthy warchest and it has been life as normal ( or spending more due to more leisure time ) so far, but I've started preparing the Mrs for cutbacks. I just had to get all my lads weekends out of the way first.

An unemployed contractor mate I met up with at weekend has sent the wife out to work, cancelled hols, gone on home brand beans, etc etc etc It was all quite amusing but I might be joining him before long.

[quackhandle]

Same as gingerjedi - spent my Warchest in 09, wife laid off, sold the car, got a 6 month gig tided us over, now looking again.

Now onto selling the classic car to keep us in caviar. (only a Triumph not an Aston ) A tax rebate would be nice but doubt that will happen.

On the up side I get to spend time with the wife and dog. Ho hum.

qh

[expat]

My sympathies to all the 2009 victims. I had 9 solid months out, most of it without a single prospect in view. The wolf was not only at the door but was mostly on the inside by the end. I've just done my company's P35 and it shows a seriously laughable figure. But the work is coming back. Courage!

[lukemg]

Yeah and we are really disguised employees taking no real risks ? It’s the uncertainty that’s the killer. It’s a bit like being dropped off on a tropical island with sufficient food etc and they say see you in 2 weeks, you have a great time. But if you get dropped with no knowledge of when it will end, you might get picked up in 2 weeks but will have had a very different and worrying experience !
Had 5 months out early 09 and was shocked at how easily the war chest gets burned up if you ain’t topping it up. When I hit the buffers in 03, I hated having to look after every pound (yeah I know this is the reality for most of the country but from not having to it was miserable). I honestly couldn’t see any way back and it took a few years, a change of direction and some ‘creative’ interviewing for things to turn round. I keep the chest well stocked these days (it’s nice if you have the chance to) because having that buffer can help to make me immune when current skills are worth nothing again (I can already see the weakness in the market). When revenue allows I am still getting the nice holidays in and buying a decent car (note- outright, no loans !), you still have to live or what is the point. But luxury for me would be financial security so I am stashing plenty to get that. It’s harsh but you need to have been in the mire to understand that fear, when the sun is shining you just think it will last forever.
Good luck all, only takes one phone call to turn it round.

[al_cam]

Surely there are 2 war chests?
A business one - you should retain enough money in the business to keep it going and to pay a salary. Those who pay the lot out as dividends risk the wrath of the HMRC for not actually running a business.

Then there is your personal war chest - my company salary and my wife's salary doesn't cover the bills so each month I am on the bench, we have to dip into the personal war chest which is offset against my mortgage.

Anyway, I am nearly 9 months on the bench, my business war chest will last until September and the personal one maybe 9 months after that. I have already taken the decision to reduce my rate expectations and widen my working location and if I have nothing by end June I will consider the dark side...

I'm naturally cautious and trying hard to pay off the mortgage so I have an 8 year old car and don't spend frivolously. While on the bench, I have been gradually reducing my expenditure, cutting out the unnecessarily luxurious things. As I have other non-IT skills, it will never come down to beans on toast for dinner for me. Worst would be to shelve the business while I earned considerably less than IT contracting doing other things.

Al.

[nomadd]

Anyone else here living off a war chest?

How long will you live off the war chest before you make drastic changes in your lifestyle? For example, will you rent out your property and lodge somewhere? Do you refrain from taking holidays whilst on warchest?

Trouble is, it's so much joy living on a war chest doing no work. Spending is easy... but there is increasing fear the money will run out!

In 21 years contracting, I've actually completely exhausted the warchest on two occasions. On a third occasion, I had 6k left in it...with a 6k Corp. Tax bill due to pay.

I promised myself after the last time I'd spend several years building up a megachest. Which is exactly what I'm doing now. Who knows what post-election blues await us...