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Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
Cardwell Management Services UK Limited
Regency House, 45-51 Chorley New Road, Bolton, BL1 4QR
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Why do I need to create a buffer?
Although contracting can generate a significant income opportunity for you, there are less certainties than when you are an employee. What happens when you're not in contract? How will you continue to cover your personal expenditure as well as your business costs?
Many first time contractors have found out too late of the need to create a buffer and to manage the level of their lifestyle.
Experienced Contractors recommend that you build a buffer of at least 6 months to ensure that you can;
1. continue to enjoy the Contracting lifestyle
2. take on the right work, a contract that you'll enjoy, rather than having to take the first one on offer
3. enjoy a 'worry-free' lifestyle
There are other tricks of the trade that experienced Contractors do;
1. They utilise a credit card to take account of all of their business expenses - travel, accommodation etc - this provides them with up to 56 days interest free credit, usually enough time to ensure that they have recovered the fees from the work undertaken relating to these expenses.
2. They set up a savings scheme and automatically transfer a set amount each month. If you feel taht you may be tempted to use these funds, make sure that you use an account that is not easily accessible.
3. Some utilise things like National Savings and Premium Bonds - although you won't get interest on Premium Bonds, you do have the chance of a significant cash draw.
4, They reduce their costs by taking advantage of offers and discounts on everyday items such as stationery and business services
With a little foresight and planning, contracting is an extremely rewarding career.
See Also
Plan your Pension
Partner Offers - discounts on products and services designed for the needs of Contractors
Recommended Links
Many first time contractors have found out too late of the need to create a buffer and to manage the level of their lifestyle.
Experienced Contractors recommend that you build a buffer of at least 6 months to ensure that you can;
1. continue to enjoy the Contracting lifestyle
2. take on the right work, a contract that you'll enjoy, rather than having to take the first one on offer
3. enjoy a 'worry-free' lifestyle
There are other tricks of the trade that experienced Contractors do;
1. They utilise a credit card to take account of all of their business expenses - travel, accommodation etc - this provides them with up to 56 days interest free credit, usually enough time to ensure that they have recovered the fees from the work undertaken relating to these expenses.
2. They set up a savings scheme and automatically transfer a set amount each month. If you feel taht you may be tempted to use these funds, make sure that you use an account that is not easily accessible.
3. Some utilise things like National Savings and Premium Bonds - although you won't get interest on Premium Bonds, you do have the chance of a significant cash draw.
4, They reduce their costs by taking advantage of offers and discounts on everyday items such as stationery and business services
With a little foresight and planning, contracting is an extremely rewarding career.
See Also
Plan your Pension
Partner Offers - discounts on products and services designed for the needs of Contractors
Recommended Links
