Newbie in need to advice before making the jump!

[Basil Fawlty]

The flexibility comes from being able to turn work down. You probably aren't going to be able to do that or have the confidence that the next job will come up for a few years.

This.

Contracting as a lifestyle choice comes when your mortgage is paid off and you've a 300k warchest.

For the first few years of contracting your worklife balance is likely to be worse as, unless you get lucky, you're likely to be travelling/staying away from home and working as much as possible to build up said warchest.

If this is your only reason to go contracting then personally I would look into other options such as staying permie and working part-time.

[Old Hack]

When I first made the jump, my main concern was down time between contracts, and how often I could source contracts.

Needless to worry about it really. I triple what I could earn each year, so one 4 month contract each year, and you then, potentially, have the next 8 months for extra moolah. This is how I have compartmentalised contracting. However, I haven't had down time between contracts, and have been able to pick and choose contracts. Once you have this confidence (it took me about 18-24 months), then it does become a lifestyle choice imo, as you will have enough money, if you're not mental, after 2 years, to be able to take any amount of time off looking for the right contract.

I couldn't go back to permie now, just couldn't justify it.

[doomage]

You will be carrying roughly 50% more overheads than a permie; if your hourly rate is much less than your gross salary divided by 1000, you'll go broke. You'll be running a business, think like one.

Really? That's your experience? You need at least £60 p/h or you'll go broke?

[malvolio]

Really? That's your experience? You need at least £60 p/h or you'll go broke?

Que? Where did you get £60ph from? Industry average is around £35. I dion't know what the OP's on.

Anyway, not the point. The OP is presumably living to his means already. Taking a contract rate that will pay less than his current net is simply not a good idea. Accepting a rate that is signifcantly below market just to land a job is silly and IMHO demonstrates the wrong approach.

[doomage]

Que? Where did you get £60ph from? Industry average is around £35. I dion't know what the OP's on.

Anyway, not the point. The OP is presumably living to his means already. Taking a contract rate that will pay less than his current net is simply not a good idea. Accepting a rate that is signifcantly below market just to land a job is silly and IMHO demonstrates the wrong approach.

Ok. Earlier poster said "So if you are currently earning more than £60K, as is likely in your permie management role". Agree that <£35 p/h makes permie roles more appealing. But Contractor Calculator - Your Expert Guide to Contracting. For UK Contractors, Freelancers, and Consultants says you need a permie salary of £63k to match £35 p/h.

Anyway, I disagree with your other point. It's fine to take a hit on rate if you think it will give you the skills / experience to get a higher rate for the next contract. That's what thinking like a business is - the key to success is sales, in fact repeat sales -the more you focus on this the more successful you will be. Just looking at it from how much you should charge is the wrong approach IMHO - it's like permies concerned about what pay scale they are on.