Size of Warchest?

[TykeMerc]

I have an offset mortgage and pile my dividends into linked accounts, I consider myself fortunate to have almost a positive balance against the mortgage. Should I need the cash then it's in savings and not tied up in paid off mortgage, I suppose I could live off the saved money for several years if I needed to.

Obviously I paid off all outstanding debt first before I started saving and I'm very careful to pay credit card bills in full every month.

There's enough in the company accounts to provide an adequate income for a year or two as well. To me it's common sense to have enough to tide myself over for a year and I'm lucky to be in a better position than that. I've had a few periods where I couldn't find a contract I was prepared to do so sizable a warchest is vital.

[al_cam]

Really....?!

Indeed. Yes, it is a bit strange - but I am a PM.
Once I am free of my mortgage, I am then free to go and do something more useful and enjoyable in life (i.e. not IT) without risk. I motivate myself by setting goals hence the sig - not meant to be boasting, all contractors could do it if they chose to do so including the OP thereby reducing the need for a warchest.

I got my first mortgage 15 years ago and moved up since then so I think I'm doing not bad - mainly thanks to contracting and not changing to a contractor lifestyle.

And, I just updated the sig - not been updated for a while. Might change it now though...


Al.

[MaryPoppins]

Indeed. Yes, it is a bit strange - but I am a PM.
Once I am free of my mortgage, I am then free to go and do something more useful and enjoyable in life (i.e. not IT) without risk. I motivate myself by setting goals hence the sig - not meant to be boasting, all contractors could do it if they chose to do so including the OP thereby reducing the need for a warchest.

I got my first mortgage 15 years ago and moved up since then so I think I'm doing not bad - mainly thanks to contracting and not changing to a contractor lifestyle.

And, I just updated the sig - not been updated for a while. Might change it now though...


Al.

You misunderstood my comment. I don't doubt you can pay off your mortgage in super quick time. I just find it rather crass to tell everyone via your autosig.

[d000hg]

You misunderstood my comment. I don't doubt you can pay off your mortgage in super quick time. I just find it rather crass to tell everyone via your autosig.

It's hardly that vulgar. Not like he's boasting how much he earns per se... paying of a mortgage is a pretty big achievement.

I don't really know how big my WC is since I've balances in $USD and haven't figured out tax recently, but it seems to be of the order of 3 years after 3 years' contracting, if my wife didn't earn at all. Considering we were down to nearly nothing 18 months ago I'm fairly pleased; though if I can gain 1 year WC every year and I'm ~30 and expect to live to ~90 I STILL need to work until I'm 60