The biggest suggestion I can make is to always assume that after your contact is over, that the same amount of time you worked, you will not be working when the contract is over. Saving your income is key to ensuring that you can continue to work as a contractor in the future. As a rule, I tend to divide my money into three groups: 25% for taxes, 30% for savings, 45% for myself (which includes health insurance). While the taxes percentage might vary for you, I own a house and receive tax breaks for the interest and for my business expenses. If you rent, your tax percentage should be higher.
Also, the hardest thing I found is that from time to time, you need to swallow your pride and get that part time job to hold things over, or do work that you can do but is out of your area. For example, a programmer might do a few websites on the side until a programming contract comes along, etc.
As a side note, if you are comfortable in front of people, teaching at a community college or other location is a great way to make contacts, make some money and even pay for some benefits -- and not to mention the educational discount for software and hardware for your business...Something to look into...
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The biggest suggestion I can make is to always assume that after your contact is over, that the same amount of time you worked, you will not be working when the contract is over. Saving your income is key to ensuring that you can continue to work as a contractor in the future. As a rule, I tend to divide my money into three groups: 25% for taxes, 30% for savings, 45% for myself (which includes health insurance). While the taxes percentage might vary for you, I own a house and receive tax breaks for the interest and for my business expenses. If you rent, your tax percentage should be higher.
Also, the hardest thing I found is that from time to time, you need to swallow your pride and get that part time job to hold things over, or do work that you can do but is out of your area. For example, a programmer might do a few websites on the side until a programming contract comes along, etc.
As a side note, if you are comfortable in front of people, teaching at a community college or other location is a great way to make contacts, make some money and even pay for some benefits -- and not to mention the educational discount for software and hardware for your business...Something to look into...