How's the warchest looking?

[DimPrawn]

Fixed costs are the hard ones to cut back. Variable, or optional, spending is the one to hit hard and hit fast when you're anticipating tough times. Cut back your Sky subcription, gym membership, fancy restaurants and bars, expensive call girls etc.

Then concentrate on the more difficult items, such as utility bills.

Have you tried cheap call girls?!

No way! One has standards.

[Mich the Tester]

Fixed costs are the hard ones to cut back. Variable, or optional, spending is the one to hit hard and hit fast when you're anticipating tough times. Cut back your Sky subcription, gym membership, fancy restaurants and bars, expensive call girls etc.

Then concentrate on the more difficult items, such as utility bills.

NO, spend! Spend! Spend!

If everyone starts cutting back the economy will just get even worse!

I've started buying 2nd class tickets for short train journeys seeing as 1st class is always full anyway.

[lukemg]

Mine stands at roughly 10 years now but I get nervous after 4 weeks.

That is spot on, although the 10 years is a bit optimistic. Shocking how quick you burn through the reserves when benched for a while, probably psychological as well though.
Low fixed costs is right, hence I carry no debt except mortgage, always buy cars outright, credit cards paid every month.
Sounds cautious but I have had a taste of all skills becoming worthless almost overnight and it was terrifying, I want a buffer now more than anything else.

[PAH]

So any suggestions where to buy?

How about shares in an international hotel chain, then you get free or heavily discounted accommodation wherever you go.

Maybe a bunch of similar jet set contractors could group together and become major stakeholders.

Just think, no cleaning, room service at the tinkle of a bell. Posh address for the business cards. Can move locations very easily, no faffing around with bills or landlords or letting agents.

Alternatively, if posh hotels are too expensive, maybe a chain of b&bs, reserved for contractors only.

[eek]

Alternatively, if posh hotels are too expensive, maybe a chain of b&bs, reserved for contractors only.

There are landlords (really directors, managers and mates of directors of bob companies) who specialise in that market.

9 to a 3 bed house is a profitable business.

[ChimpMaster]

That is spot on, although the 10 years is a bit optimistic. Shocking how quick you burn through the reserves when benched for a while, probably psychological as well though.
Low fixed costs is right, hence I carry no debt except mortgage, always buy cars outright, credit cards paid every month.
Sounds cautious but I have had a taste of all skills becoming worthless almost overnight and it was terrifying, I want a buffer now more than anything else.

I think many of us feel that way. I've been contracting several years now (not yet a decade), and yet I've never felt completely secure with my financial standing.

And that's even with no debt, aside from BTLs which are currently self-supporting and generating profit.

Furthermore, if one has 10 years warchest available (which must be a fair amount, say ~£250,000), my plan would be to invest that in revenue generating systems, and not treat it as a spending resource. That way, you don't lose the funds and yet they throw off cash for you to live off (or invest further).

[PAH]

There are landlords (really directors, managers and mates of directors of bob companies) who specialise in that market.

9 to a 3 bed house is a profitable business.

I thought there might be. Some form of short term renting with minimal hassle, a sort of cross between typical apartment rental and hotel bookings.

[DimPrawn]

I thought there might be. Some form of short term renting with minimal hassle, a sort of cross between typical apartment rental and hotel bookings.

Serviced apartments they are generally called. Good BTL plan b I reckon.

e.g.

http://www.esa-servicedapartments.co...FYYmtAodOi5C5Q

[PAH]

my plan would be to invest that in revenue generating systems

What are such fail-safe systems at present?

In several banks, split into 85k chunks to get protection against bank collapse, getting a few % a year, which may not even offset inflation?

Anything better but not significantly riskier?

[PAH]

Serviced apartments they are generally called. Good BTL plan b I reckon.

e.g.

Serviced Apartments Swindon | Executive Serviced Apartments Swindon

I guess if they don't advertise prices (that I can see) then they aren't going to be cheap.

Maybe there's a market for renting normal apartments at a slight premium for those not wanting to commit to the initial 6 month term.

Something with no minimum term and costing somewhere between a normal rent and a hotel room. No servicing as such, just normal apartments on different terms.