Reply to: Cake and eat it - Some advice please

[Fred Bloggs]

I've been contracting 22 years and say that to myself every year. Never happens, though. The lure of contracting gold is just too much.

Mind you, I do take long breaks off between contracts, so I guess that counts.

Yes, I think that counts. I'm an old fart anyway I haven't got more than another 8 or 9 years to go and hopefully I'll be in the "doing it because it's interesting" game rather than because I have to.

[ChimpMaster]

I think you have made the mistake a lot of people have, living within your current means. Maybe you should read "Rich dad, poor dad". You need to start making your income work for you, not just spending it.

You've mentioned this book a few times now and I have to agree it is one of the most eye-opening books I have ever read. It completely changed the way I thought about money.

However, it's not as valid today as it was 10 years ago (which incidentally is when I first read it, followed by the next 3 in the series, all mostly recycled rubbish). The Western economic cycle is very much different now. The book is still helpful, just not as much - I wish someone would give me a 2011 version!

From the sounds of it, waccoe has lived within his means but it's not clear whether he's invested the surplus or just left it in the bank.

[alreadypacked]

Another sensible post, and mirrors exactly what I've been through. All this talk of retiring and being a millionaire after 17 years contracting are totally wide of the mark. When I started off contracting, aged 26, I was on around £25ph, even before I started my 13 year stint here, I was on around £40ph. It's not been a steady 17 years at a constant astronomical rate. There's been a couple of kids, a much bigger house, school fees, new cars, general day to day living. Not saying I haven't got lots saved up, but retirement and "millionaire", I don't think so.

I think you have made the mistake a lot of people have, living within your current means. Maybe you should read "Rich dad, poor dad". You need to start making your income work for you, not just spending it.

[ChimpMaster]

yeah not sure I buy all the 'your not a proper contractor' stuff either, I'm enjoying my current role and it pays well so am looking to maximise my duration in it

Oh look MF, someone with good business acumen!

[TykeMerc]

Totally agree. The agent isn't interested in how long you've been in one role, they're just bothered about their commission. In fact, not one agent has even questioned the 13 years, they're all about how much do you want, and how much they can make.

I think there's a bit of envy creeping in here, with all the "you're not a proper contractor" talk. As I said further up the thread, if you're in a decent contract, paying a decent rate, the work is ok, and you're literally up the road, who wouldn't accept a renewal? My urge to move on, is stemming from being bored with the work now.

I completely agree and I would have done exactly the same thing in those circumstances. It sounds like you're considering a change for sensible reasons and you can afford to take the time to find a new role that you like.

[2BIT]

yeah not sure I buy all the 'your not a proper contractor' stuff either, I'm enjoying my current role and it pays well so am looking to maximise my duration in it

[waccoe]

I guess it partly depends on one's outgoings and whether you have allowed yourself to become accustomed to a more expensive lifestyle. It's quite easy to say that you would retire after x years' of contracting, but what if you start spending more or buy a bigger house, or perhaps you aren't married yet and don't yet have kids?

When I was younger (and single) I had planned to be semi-retired by 35. The plan was to have my one BTL property all paid off, and a couple of other smaller investments, so that I would have about £1,000 a month coming in without having to work. I then got married, bought a bigger house, had a couple of kids, and now suddenly I need more like £5,000 a month to maintain this lifestyle (which includes planning for the kids' school/uni fees etc). So that'll keep me on the treadmill for a lot longer.

Another sensible post, and mirrors exactly what I've been through. All this talk of retiring and being a millionaire after 17 years contracting are totally wide of the mark. When I started off contracting, aged 26, I was on around £25ph, even before I started my 13 year stint here, I was on around £40ph. It's not been a steady 17 years at a constant astronomical rate. There's been a couple of kids, a much bigger house, school fees, new cars, general day to day living. Not saying I haven't got lots saved up, but retirement and "millionaire", I don't think so.

[waccoe]

13 YEARS!!!!!

I don't know whether to congratulate you on getting a contract for that long on contractors money or to think your mad for being there so long as a contractor!

Also the fact you've been working this way with no notice period, so as long as I have it right that has meant you have to stay the whole term of the contract and could not leave, that is mad to me!! I know there is a lot of debate with tax as to whether its good to have a notice period or not but to have a year contract each time with no notice period there is no way I would!

Good on you though if this has worked out for you but like others have said as you have been working that long and have the money, take a break. Another job will come up and a change of scenery is good otherwise you do start feeling more trapped and you could find this time next year saying 'just one more year' and so on and then before you know it it would have been 20 years and even harder to leave.

More to life than work.

Stupid of me I know, but I didn't actually realise that I didn't have a notice period. It's a bit of a nonsense anyway, if I wanted to move on, the client wouldn't have had any issue with a 28 day notice period, and the agent can't exactly force you to stay, I'd have just asked the client to invoke their own 28 day notice period, benefits of having a good relationship with them. In the past, I've managed to get out of contracts which didn't have a notice period.

[waccoe]

That's the kind of comment an uneducated agent would make.

Multiple renewals = good business. If you were a supplier in any other field, would you dump a customer just because you had done business with them for 'too long'?

So why should it be any different for an I.T. consultancy?

Totally agree. The agent isn't interested in how long you've been in one role, they're just bothered about their commission. In fact, not one agent has even questioned the 13 years, they're all about how much do you want, and how much they can make.

I think there's a bit of envy creeping in here, with all the "you're not a proper contractor" talk. As I said further up the thread, if you're in a decent contract, paying a decent rate, the work is ok, and you're literally up the road, who wouldn't accept a renewal? My urge to move on, is stemming from being bored with the work now.

[2BIT]

how much of a rate increase would you need to cancel out the fact you don't like the team leader? I would try for that but be ready to move - it sounds like you want to move so think the only reason you should stay is for more bucks - at 13 yrs on a contract you shouldn't need to find anything in two weeks but if you don't have a big warchest then stay

[curtis]

13 YEARS!!!!!

I don't know whether to congratulate you on getting a contract for that long on contractors money or to think your mad for being there so long as a contractor!

Also the fact you've been working this way with no notice period, so as long as I have it right that has meant you have to stay the whole term of the contract and could not leave, that is mad to me!! I know there is a lot of debate with tax as to whether its good to have a notice period or not but to have a year contract each time with no notice period there is no way I would!

Good on you though if this has worked out for you but like others have said as you have been working that long and have the money, take a break. Another job will come up and a change of scenery is good otherwise you do start feeling more trapped and you could find this time next year saying 'just one more year' and so on and then before you know it it would have been 20 years and even harder to leave.

More to life than work.

[ChimpMaster]

You've been there 13 years. You're effectively an employee and I wouldn't call you a 'contractor' in the terms that we understand it.
...

That's the kind of comment an uneducated agent would make.

Multiple renewals = good business. If you were a supplier in any other field, would you dump a customer just because you had done business with them for 'too long'?

So why should it be any different for an I.T. consultancy?

[ChimpMaster]

Yep, after 17 years on a good rate I'd be finished working full time and just picking the odd job that I fancied doing if it suited me.

I've been contracting 22 years and say that to myself every year. Never happens, though. The lure of contracting gold is just too much.

Mind you, I do take long breaks off between contracts, so I guess that counts.

I guess it partly depends on one's outgoings and whether you have allowed yourself to become accustomed to a more expensive lifestyle. It's quite easy to say that you would retire after x years' of contracting, but what if you start spending more or buy a bigger house, or perhaps you aren't married yet and don't yet have kids?

When I was younger (and single) I had planned to be semi-retired by 35. The plan was to have my one BTL property all paid off, and a couple of other smaller investments, so that I would have about £1,000 a month coming in without having to work. I then got married, bought a bigger house, had a couple of kids, and now suddenly I need more like £5,000 a month to maintain this lifestyle (which includes planning for the kids' school/uni fees etc). So that'll keep me on the treadmill for a lot longer.

[nomadd]

Yep, after 17 years on a good rate I'd be finished working full time and just picking the odd job that I fancied doing if it suited me.

I've been contracting 22 years and say that to myself every year. Never happens, though. The lure of contracting gold is just too much.

Mind you, I do take long breaks off between contracts, so I guess that counts.

[BolshieBastard]

Good job the OP has insurance in place (if indeed the insurer hasnt got some sneaky get out clause!) cos there's no way on earth an HMRC IR35 investigation wouldnt find him caught after 13 years at the same client, even if a contract review says he's outside.

TBH, I think he should stay cos any agent is going to look on him as a 'permie' just going contracting for the first time. Plus, if his skillset is getting 'old' as he says, he could be looking a long time for another role.