Reply to: War Chest vs Day Rate vs Monthly Outgoings

[WTFH]

Ok, so that works out at


1. 650
2. 120


Think I may take the rest of the year off.

You mean you've got £40,716 in your warchest and spend £7,516.80 a month.

(NLUK, go ask your accountant how I arrived at those figures)

[MarillionFan]

Thought I would try something, which may work, or fail spectacularly!!

I would be interested to gauge the size of other contractors war chests. Appreciate that very few people will want to give out specifics £ figures, so thought we could do it as:

1. Ratio to day rate: so £40k war chest against £400 / day = 100
2. Ratio to monthly personal outgoings: so £40k war chest against £4000 / month = 10

I will start...

1. 125
2. 14

Don't all rush to answer....

Ok, so that works out at


1. 650
2. 120


Think I may take the rest of the year off.

[jamesbrown]

Doesn't work when someone has as big an ego as sas.

Diagnosed.

[Mikeoc1962]

I'm an old fellah so war chest planning is different now as I could draw from my pension if things got tight.

I don't see the point of the day rate multiple (as previous posters have said it varies).

I feel a little exposed if I have the equivalent of less than six months outgoings in the war chest, start feeling more comfortable when I have a year's money and superman when I have two years money stashed away.

[Hobosapien]

Warchest planning is simple, the more the better and you always need more than you think when you come to actually draw from it.

Even if you work out your true current expenditure while in contract that goes out the window when you find yourself at home with everyone else at work and decide you may as well stay active so end up spending more just to fill the spare time with new activities and hobbies.

Life is for living after all, if your warchest gets big enough you can work less or not at all.

[MrButton]

1. 60
2. 9

Wow. That was pointless.

[sasguru]

How about IQ / ego. Let's call it the CUK golden cretin ratio.

Sasguru: ~0

Ah how sweet. He's trying to be numerate ...

[NotAllThere]

How about IQ / ego. Let's call it the CUK golden cretin ratio.

Sasguru: ~0

Doesn't work when someone has as big an ego as sas.

[WTFH]

If I were the kind of person who spends all his money on booze, birds and fast cars, then I’ve got about 12 months in my warchest.

I just need to be careful not to squander the rest.

[tomtomagain]

Intrigued as to why you need to know this information.

It's so (s)he can brag about having some savings and not having p*ssed it all up a wall.

[DoctorStrangelove]

Stone me, I had an extensive warchest even as a permie.

It saw me through 20 months of unemployment, though interest rates at the time meant I could live on the interest.

Now I'm an it's even greater & assuming inflation doesn't reach 100% it ought to see me ok for a while.

[ladymuck]

Intrigued as to why you need to know this information.

As mentioned above, I also aim to ensure 6 months of bills are covered (at least). I would never go to the bother of working it out as you have; it's a waste of time.

[northernladuk]

Thought I would try something, which may work, or fail spectacularly!!
:

You posted it in General so most definitely the latter.

[cojak]

Given there's been some rumblings about Hammond starting to try and target Ltd Director pension contributions, lifetime allowances & specifically, ER......is it going to be a viable strategy going forwards?

Now, that is a good question, and a better one to ask than the OP’s.

[Bean]

Given there's been some rumblings about Hammond starting to try and target Ltd Director pension contributions, lifetime allowances & specifically, ER......is it going to be a viable strategy going forwards?