The Contract Life – A Month Later

So far I’m into my second month as a SAP contractor, there’s a few things I’m already facing first hand. I kinda enjoy so far being a contractor as I feel I am in control of my self as well as my income I earned. But well we will see the next few months whether it will as great as it is now after just one month. Anyway here are my top three best and bad part in being a contractor in SAP consulting:

The Good Part

Salary Is In Full
Yes you get the salary based on the rate you’ve given in the number of days you’ve worked. The higher the rate and days, the more you earn. So yeah it’s paid in that full amount so for the first time, you get hold a bulk of cash slightly later than usual but in full amount. So with proper planning, you will have some spare cash lying around.

You Will Get The Focus You Need
Being a SAP contractor allows me to focus on one thing. My job. So if I am assigned as an SD consultant, then that’s the only thing I will be doing, everything related to SD. In contrast to being a permanent staff assign as SD consultant but have to do two or three different roles not related to SD or SAP consulting. The risk of me losing focus and lose track of my task is quite high. So being contractor let me focus on my job and deliverable. In a way it also helps me grab as much knowledge and experience in the post I’m assigned to. Neat!

Time Is Your’s To Command
Now as a contract consult, the usual operating hours will be 8 hours excluding 1 hour lunch. So in theory as long as you clocked in 8 hours a day, you have serve your purpose. So if you come at 10 and finish off by 7pm that’s it. Me I keep it to my ethics to come in early. So usually I clocked in either 7.30 am or 8.15 am so I tend to go back early usually at 5.30pm. Of course there are days that you might need to clock in longer or work on weekends. So extra weekends if more than 3 or 4 hours means extra charging.

The Bad Part

Money Management Is A Must
Since the salary is paid in one bulk amount, you get the sensation of a lot of cash in hand and tend to spend more. So for that money management and budgeting is something you to instill in yourself. Separate the amount to save before paying the bills. And since EPF is not available, you need to do your own investment or saving for old age. ASB, Tabung Haji and Fixed Deposit are among the choice available for such cases. Happy planning.

More Holidays – Less Invoicing
My charging is based on a daily rate so if there’s unexpected day off or holiday, then the less I earned. I found this out during Malaysia GE14 which was held on a Wednesday which was declared a holiday. So my man days dropped from 21 to 20. But then the then opposition won the GE14 and declared an additional two days holiday my man days dropped from 20 to 18. So now unexpected holidays or breaks is something I’m not looking forward to.

Insurance Is A Must
As much as I want to deny it, I need an insurance. I’ve been comfortable without one since I was employed as a permanent staff therefore insurance is covered. But going freelance or contractor, you need one in place. Because you never know you’re going to need one. Plus medical for those general visits to clinics for fever, cough and etc, yup you need to pay that on your own.

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