War Chest.

[permidom]

Forgive my ignorance (new to the forum) but as a contractor l would have thought your war chest would be in years given the pay?

[cojak]

We don't all earn a King's ransom and you do have to live.

[DieScum]

Forgive my ignorance (new to the forum) but as a contractor l would have thought your war chest would be in years given the pay?

I've often thought the same myself. I think 'war chest' means different things to different people. Somebody might put all their spare cash in the mortage or whatever and just not have much liquid.

I've got about five years or so war chest but I've been earning a good wedge for the last eight so I don't know what else I'd do with it. Most of mine is tied up in investments but all pretty liquid.

[TOSH1]

Forgive my ignorance (new to the forum) but as a contractor l would have thought your war chest would be in years given the pay?

I ca do abut three months on the bench, the rest is in my pension and paying off the mortgage,

[MarillionFan]

This^

And I'd err on the side of a year.

3 months before you make the jump. It'll focus the mind.
6 months minimum after you've started, then over the years aim to turn your saving into passive income which in turn will reduce your reliance on contracting cash.

[permidom]

3 months before you make the jump. It'll focus the mind.
6 months minimum after you've started, then over the years aim to turn your saving into passive income which in turn will reduce your reliance on contracting cash.

What would generate that passive income?

I use the stock market myself.

[eek]

What would generate that passive income?

I use the stock market myself.

Rather a risky option. Shares go up and down in value, dividends aren't guaranteed.

At least with property you can be reasonably sure about getting a monthly income.

[BlasterBates]

Sock market is up and down but gives you a better return.

[MarillionFan]

What would generate that passive income?

I use the stock market myself.

Shares / Divvies
Bonds
ISAs
Buy to Lets
Zopa
Ratesetter
Funding Circle
Credit Card Schmoozing

[psychocandy]

I ca do abut three months on the bench, the rest is in my pension and paying off the mortgage,

Hmmm. Only trouble with this whereas its nice to pay off the mortgage rather than having it sit in a crap interest account once its gone on the mortgage its gone.

No good having paid £50K off the mortgage to find out in three months you're warchest is all gone.

I'd say 3 months is cutting it a bit fine. Admitedly, its a balancing act between paying off debts and keeping some readily available.