There's always someone out there better than you at doing what you do, and willing for work for less, and their reasons for doing so can be quite complex.
If that was true - why doesnt Man United sack Ferguson and replace him with the manager of Doncaster Rovers ?
Sure they would get him plenty cheapness...
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Previously on "We all talk about it but what is the right rate"
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Originally posted by Turion View PostThe key to contractor financial success, is to live on the equivalent permie income or stick below the higher rate limit (whichever the lowest). Keep 6 months rainy day fund and everything else to go into paying off loans, mortages first, then build up saving and pensions. In later years you may be able to justify spending more as it's already been earnt. In good years you can pay yourself a bonus or waste money on a new car, but never borrow or start spending like Beckam. Even living on the equivalent permie wage you will be better off as you will have no mortgage and not need to save from that money.
(Signed- Fred "debt free and building up a big retirement pot" Bloggs).
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Originally posted by XLMonkey View Postand here I am....
There's no doubt that, if your skills are easy to replace, then the market will push your rate down very quickly if there is a supply of candidates willing to take your place. And the supply of newbie contractors onto the market is healthier than its ever been.
Happiness (in contracting terms) is spending less than you earn, and then enjoying the excess in your own time.
£250/day income -£200/day expenditure = happy
£500/day income - £550/day expenditure = unhappy
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Minimum? £100pd. We don't get silly money in rollout/support, and I know how to live within my means. Also don't have wife/kids to drain my earnings!
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The key to contractor financial success, is to live on the equivalent permie income or stick below the higher rate limit (whichever the lowest). Keep 6 months rainy day fund and everything else to go into paying off loans, mortages first, then build up saving and pensions. In later years you may be able to justify spending more as it's already been earnt. In good years you can pay yourself a bonus or waste money on a new car, but never borrow or start spending like Beckam. Even living on the equivalent permie wage you will be better off as you will have no mortgage and not need to save from that money.
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Costs
Originally posted by Belle View PostI earn £400 a day...
Minus £50 a day for expenses = £350
Minus +/- £87.50 (approx) a day for tax - £262.50
Minus £46 a day for rent (London) = £216.50
Minus £50 a day for childcare (London!!) = £166.50
So £166.50 left for food for four, clothes for four, bills, petrol, car payments, pension, insurance....warchest? What friggin warchest?
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Originally posted by d000hg View PostAssuming your rent listed is for your home, not a 2nd house while contracting away:
Groceries: £150/week (generous but hardly excessive if you add it all up)
Clothes: £200 /month (some people spend virtually nothing, hard to judge)
Water: £50/month?
Electric+Gas: £150/month?
Council Tax: £200/month?
Petrol: £50/week?
Insurance: £100/month
= about £1600 per month
Your £166.50/day, given 20 working days/month = £3330
You have somewhere about £1700/month left for servicing loans, savings, etc. That's about the take-home pay of someone on £30k IIRC. But not a huge amount to build up a war-chest if you want family holidays.
Tell the missus to get a job...
Incidentally, the rate you need/want/accept is dynamic, and based on many variables on the day you sign your contract. So quoting arbitrary figures is not that helpful...
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Originally posted by d000hg View PostAssuming your rent listed is for your home, not a 2nd house while contracting away:
Groceries: £150/week (generous but hardly excessive if you add it all up)
Clothes: £200 /month (some people spend virtually nothing, hard to judge)
Water: £50/month?
Electric+Gas: £150/month?
Council Tax: £200/month?
Petrol: £50/week?
Insurance: £100/month
= about £1600 per month
Your £166.50/day, given 20 working days/month = £3330
You have somewhere about £1700/month left for servicing loans, savings, etc. That's about the take-home pay of someone on £30k IIRC. But not a huge amount to build up a war-chest if you want family holidays.
Tell the missus to get a job...
You forgot telephone, tv (license and pay channels...got to keep the kids happy), mobiles, minimal entertainment....not complaining, just pointing out the facts of living costs...especially in London.
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Originally posted by Belle View PostI earn £400 a day...
Minus £50 a day for expenses = £350
Minus +/- £87.50 (approx) a day for tax - £262.50
Minus £46 a day for rent (London) = £216.50
Minus £50 a day for childcare (London!!) = £166.50
So £166.50 left for food for four, clothes for four, bills, petrol, car payments, pension, insurance....warchest? What friggin warchest?
Groceries: £150/week (generous but hardly excessive if you add it all up)
Clothes: £200 /month (some people spend virtually nothing, hard to judge)
Water: £50/month?
Electric+Gas: £150/month?
Council Tax: £200/month?
Petrol: £50/week?
Insurance: £100/month
= about £1600 per month
Your £166.50/day, given 20 working days/month = £3330
You have somewhere about £1700/month left for servicing loans, savings, etc. That's about the take-home pay of someone on £30k IIRC. But not a huge amount to build up a war-chest if you want family holidays.
Tell the missus to get a job...
Leave a comment:
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Originally posted by Belle View PostI earn £400 a day...
Minus £50 a day for expenses = £350
Minus +/- £87.50 (approx) a day for tax - £262.50
Minus £46 a day for rent (London) = £216.50
Minus £50 a day for childcare (London!!) = £166.50
So £166.50 left for food for four, clothes for four, bills, petrol, car payments, pension, insurance....warchest? What friggin warchest?
Leave a comment:
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I earn £400 a day...
Minus £50 a day for expenses = £350
Minus +/- £87.50 (approx) a day for tax - £262.50
Minus £46 a day for rent (London) = £216.50
Minus £50 a day for childcare (London!!) = £166.50
So £166.50 left for food for four, clothes for four, bills, petrol, car payments, pension, insurance....warchest? What friggin warchest?
Leave a comment:
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Originally posted by AlfredJPruffock View PostTherres an old saying - if you pay peanuts - you get monkeys.
There's no doubt that, if your skills are easy to replace, then the market will push your rate down very quickly if there is a supply of candidates willing to take your place. And the supply of newbie contractors onto the market is healthier than its ever been.
Happiness (in contracting terms) is spending less than you earn, and then enjoying the excess in your own time.
£250/day income -£200/day expenditure = happy
£500/day income - £550/day expenditure = unhappy
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Originally posted by AlfredJPruffock View Post[I]
Therres an old saying - if you pay peanuts - you get monkeys.
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Originally posted by Board Game Geek View PostIt's a fallacy to propogate the myth that whilst there may be a candidate willing to work for half your daily rate, he must be incompetent.
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What I was trying to say Alf, is that there are some folks who for various reasons, are willing to work for less than the going rate.
It doesn't necessarily mean that all of these folks are less skilled. Some might be, but not all.
There are a pleothera of reasons why someone is willing to work for less and many of these reasons would be justifiable to the person concerned.
It's a fallacy to propogate the myth that whilst there may be a candidate willing to work for half your daily rate, he must be incompetent. That's propogated by the people on the full rate who are fearful of getting a rate cut or replaced.
There's always someone out there better than you at doing what you do, and willing for work for less, and their reasons for doing so can be quite complex.
Leave a comment:
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