how big should your warchest be?

[jamesbrown]

I don't explicitly keep a separate warchest. Do others view it has how many months their Ltd could continue to pay salary/dividends without any income?

I suppose I think about it as how many months I could live without work. So, with PC, that's five minutes after he's canned. With everyone else, they probably have some combination of money in their company and money in their personal accounts and the composition of those two things doesn't really matter, except the former is not yet fully taxed.

[ladymuck]

I don't explicitly keep a separate warchest. Do others view it has how many months their Ltd could continue to pay salary/dividends without any income?

I don't have a separate stash marked 'rainy day fund'. I just have cash in personal and business accounts that could be called into action if needed. Most is in notice accounts so I'd have to plan to withdraw it.

I'd draw on personal first, as it's been taxed, then draw down on company funds if necessary.

[d000hg]

That seems reasonable, I only ask as I've seen people be quite militant "if it's in your savings accounts it's not your warchest" and wondered if that was a common view. I can't be bothered to have specific buckets for different things.

[lorakeen]

That seems reasonable, I only ask as I've seen people be quite militant "if it's in your savings accounts it's not your warchest" and wondered if that was a common view. I can't be bothered to have specific buckets for different things.

why would anyone be militant about other people's choices?

[WTFH]

why would anyone be militant about other people's choices?

You don't read your own posts, do you?

[lorakeen]

You don't read your own posts, do you?

how so?
One has the right to be militant about other people's choices that affect them.
Being argumentative on someone's chocies that have no link with yourself is a different kettle of fish.
Do I need to elaborate?

[vwdan]

That seems reasonable, I only ask as I've seen people be quite militant "if it's in your savings accounts it's not your warchest" and wondered if that was a common view. I can't be bothered to have specific buckets for different things.

I'm the same as Muck - it's basically the money I could get to if I needed to. Most of it is just sat as accrued profit, some of it is invested

[Whorty]

That seems reasonable, I only ask as I've seen people be quite militant "if it's in your savings accounts it's not your warchest" and wondered if that was a common view. I can't be bothered to have specific buckets for different things.

I count everything as my 'war chest' because, let's face it, if we're out of income we will start to draw down on our savings whichever pot they are in. It's not like someone will spend everything from account A, but then say ... nah, can't touch account B now as that's not my 'war chest', so we'll have to go hungry this week kids!

[vetran]

You store the money wherever its most sensible to do so. Its still a war chest.

[vetran]

I count everything as my 'war chest' because, let's face it, if we're out of income we will start to draw down on our savings whichever pot they are in. It's not like someone will spend everything from account A, but then say ... nah, can't touch account B now as that's not my 'war chest', so we'll have to go hungry this week kids!

Kids? oh you mean female friends!