Contingency Fund- A Big Thank You To CT - Business - Contractor Talk

Contingency Fund- A Big Thank You To CT

 
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Old 05-28-2019, 07:18 PM   #1
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Contingency Fund- A Big Thank You To CT


When I was thinking of starting out on my own I read as many threads as I could on here. A common theme in the business threads, next to LMOP, was about creating a contingency fun, most notably I remember KAP saying this in almost every newby thread. So before I started up, I put some money in a bank account that wasn't at my regular bank and purposely made it a bit difficult to get out so I wouldn't be tempted spend it on something that wasn't absolutely necessary. After my first year I assessed what my overhead and living expenses were and made sure I had enough in there to be out of work for 3 months as KAP suggested.

Though I never needed it until today, having that contingency fund is like having a massive confidence booster when you're first starting out at a time when your confidence might be very low. It allows you to turn down sketchy jobs and not be as afraid of loosing ones you want by pricing too low.

That's one of the side benefits. For me though it offered much much more than that. Three months ago my mother was given a terminal diagnosis 2 weeks - 2 months. My parents live very far away, so it wasn't realistic to work and take care of them. What my contingency fund gave me was the last two months with my mother, to take care of her and my father. It gave me real honest quality time with them, wonderful memories that will last my lifetime, a sense of pride that I could be there for the woman who gave up so much for me in her time of need.

I'm posting this not as a means of garnering sympathy, but as a reminder that life can change in the blink of an eye, be it getting hurt, taking care of a loved one, a bunch of jobs falling through, or rough times in the market. We all think we're 10' tall and indestructible, but a sole breadwinner entrepreneur is a very vulnerable position to be in....so have your contingency ready.

Many thanks to the wise old contributors of this forum who've shared their knowledge of lessons learned to help prevent the next generation from making the same mistakes or see the writing on the wall before it's been written.
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Old 05-28-2019, 07:39 PM   #2
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Re: Contingency Fund- A Big Thank You To CT


Wish you didn't have to use it, but I'm glad it was there for you.

Caring for a dying parent can take a toll, I'm sorry for your loss and hope you can find some peace.

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Old 05-29-2019, 06:24 AM   #3
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Re: Contingency Fund- A Big Thank You To CT


Has anyone been a qualifier on a license in California?
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Old 05-29-2019, 10:16 AM   #4
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Re: Contingency Fund- A Big Thank You To CT


Quote:
Originally Posted by garrygoeson View Post
Has anyone been a qualifier on a license in California?
No.
But I stayed at a Holiday Inn Express last night.











What has this got to do with a contingency fund?
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Old 05-29-2019, 06:32 PM   #5
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Re: Contingency Fund- A Big Thank You To CT


Sorry to hear about your parents. I lost my dad 30 years ago
I like to keep a small amount in a fund for when I "need" it to cover something or a slow time, my better half thinks it's hers ...LOL I have to fight to get at it then pay it back ASAP or else..lol
It is nice to have when needed though.
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Old 05-29-2019, 11:54 PM   #6
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Re: Contingency Fund- A Big Thank You To CT


I am new to this site, and realized I posted a question that was inappropriate to the topic.
Please accept my apology. I'll figure out how this whole thing works soon enough

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