The life of a contractor can be a rollercoaster ride at times, with many highs and (hopefully few) lows. The unpredictable nature of working this way can mean that a single curve ball could have the potential to derail you.
That’s why your rainy day fund really counts. Having a cushion in place to act as a shock absorber gives you the peace of mind that should there be any unforeseen circumstances you can deal with them seamlessly with no disruption to your life. As a rule of thumb, three months of your expenses is a good target to aim for.