War Chest vs Day Rate vs Monthly Outgoings

[tomtomagain]

Intrigued as to why you need to know this information.

It's so (s)he can brag about having some savings and not having p*ssed it all up a wall.

[WTFH]

If I were the kind of person who spends all his money on booze, birds and fast cars, then I’ve got about 12 months in my warchest.

I just need to be careful not to squander the rest.

[NotAllThere]

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

Sasguru: ~0

Doesn't work when someone has as big an ego as sas.

[sasguru]

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

Sasguru: ~0

Ah how sweet. He's trying to be numerate ...

[MrButton]

1. 60
2. 9

Wow. That was pointless.

[Hobosapien]

Warchest planning is simple, the more the better and you always need more than you think when you come to actually draw from it.

Even if you work out your true current expenditure while in contract that goes out the window when you find yourself at home with everyone else at work and decide you may as well stay active so end up spending more just to fill the spare time with new activities and hobbies.

Life is for living after all, if your warchest gets big enough you can work less or not at all.

[Mikeoc1962]

I'm an old fellah so war chest planning is different now as I could draw from my pension if things got tight.

I don't see the point of the day rate multiple (as previous posters have said it varies).

I feel a little exposed if I have the equivalent of less than six months outgoings in the war chest, start feeling more comfortable when I have a year's money and superman when I have two years money stashed away.

[jamesbrown]

Doesn't work when someone has as big an ego as sas.

Diagnosed.

[MarillionFan]

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....

Ok, so that works out at


1. 650
2. 120


Think I may take the rest of the year off.

[WTFH]

Ok, so that works out at


1. 650
2. 120


Think I may take the rest of the year off.

You mean you've got £40,716 in your warchest and spend £7,516.80 a month.

(NLUK, go ask your accountant how I arrived at those figures)