As a contractor do you sometimes lose perspective when it comes to money?!

[Gaz_M]

Though it depends on where you live, £350/day is pretty good if you're not in any major city. After 8 years of contracting at that rate, you should have been able to pay off a substantial chunk of your mortgage, depending of course on how lavish your lifestyle is and how expensive your home is. And have savings, whether personal or in your Ltd.

Well, I haven't paid off any chunk from my mortgage (apart from the normal monthly payments) & I only have a reasonable warchest in the company.
One of my biggest problems is that I've had to stay away from home for nearly every contract which eats huge chunks into the daily rate. However, we certainly don't have a lavish lifestyle.

I'm amazed that people say they can save around a grand a month on similar rates as me as well as leaving money in the company for their warchest.

[MarillionFan]

Well, I haven't paid off any chunk from my mortgage (apart from the normal monthly payments) & I only have a reasonable warchest in the company.
One of my biggest problems is that I've had to stay away from home for nearly every contract which eats huge chunks into the daily rate. However, we certainly don't have a lavish lifestyle.

I'm amazed that people say they can save around a grand a month on similar rates as me as well as leaving money in the company for their warchest.

I've managed to save £2k per month for the last 15 years when contracting. That in turn invested returns interest. Now operating at £4k per month. But then again I'm a tight bastard.

[Gaz_M]

I've managed to save £2k per month for the last 15 years when contracting. That in turn invested returns interest. Now operating at £4k per month. But then again I'm a tight bastard.

£360K? FFS. Can I ask if that's in the business or have you taken that out to invest elsewhere?

I'm certainly doing something wrong then

[SimonMac]

£360K? FFS. Can I ask if that's in the business or have you taken that out to invest elsewhere?

I'm certainly doing something wrong then

When talking to MF its helpful to remember he usually talks out of his arse

[stek]

As a contractor do you sometimes lose perspective when it comes to money?!

And everyone lies in General..

[psychocandy]

The point is you've saving it to spend when you need it... so using it to buy a mortgage-free property or something is not wrong.

Unless you then find yourself with no contract and no readily-available cash because its tied up in a house?

[psychocandy]

Just read through this thread & I'm worried what the hell I'm doing wrong.

I've been contracting for over 8 years with a consistent 10 months+ work per annum at rates of around £350/day & I'm nowhere near as well off as 99% of the posters on this thread.

Do you all pay yourself way over the £44k(ish) threshold because anything underneath that then you can't have a mortgage/kids/bills etc and still have thousands left over each month to spend on what you want

Mrs work? Split dividends so potentially can both earn up to £44K?

[psychocandy]

I am in the same boat, although this is only my second year. I have managed to pay off the credit cards and overdraft and have given my wife money to pay off hers. However, I have never seen this situation that everyone quotes where they have 6 months + of money sitting untouched in the bank. At the moment our burn rate is about 2k a month on mortgage, food and bills. I reckon we have about 5 months worth of money without touching credit cards etc but ever that is by the skin of our teeth.

It makes me wonder what on earth I am doing wrong!!!!

Been back contracting 2 years come May. Same as you need about £3K per month. Mrs works but only gets £900/month so need another £2K.

In that time, started with credit card debts of approaching £25K. Now down to £5K or so (on low balance transfer so no rush). Also, spent £6K on garage conversion, had a holiday to florida for £5K. Currently got about 9 months money saved up (i.e. £18K)

[SimonMac]

And everyone lies in General..

So that in itself will be a lie?!

[DaveB]

And everyone lies in General..

No they don't