Oct
15
2010
Contractors 'need to save more for a rainy day'
Contractors need to be saving more money for a rainy day, according to an industry expert, who said that the funds could come in handy in an emergency.
Ed Bowsher, head of consumer finance at LoveMoney.com, said that those with an umbrella company need to have around six months worth of money in a savings account, just in case the worst scenario happened.
He added that this level of savings would provide a "cushion" for contractors in case they end up in unforeseen financial dire straits.
"I accept that building such a sizeable savings cushion is a major challenge for many people, but it's worth doing if you possibly can," he said.
Mr Bowsher went on to say that although it is much easier to save during an economic boom, doing this does not seem as important during these periods.
His words came after research by NS&I found that married people have lower saving goals than their single contractor counterparts.
Posted by Daniel Frost
Ed Bowsher, head of consumer finance at LoveMoney.com, said that those with an umbrella company need to have around six months worth of money in a savings account, just in case the worst scenario happened.
He added that this level of savings would provide a "cushion" for contractors in case they end up in unforeseen financial dire straits.
"I accept that building such a sizeable savings cushion is a major challenge for many people, but it's worth doing if you possibly can," he said.
Mr Bowsher went on to say that although it is much easier to save during an economic boom, doing this does not seem as important during these periods.
His words came after research by NS&I found that married people have lower saving goals than their single contractor counterparts.
Posted by Daniel Frost