I often speak with seasoned contractors, professionals with years of experience, who feel frustrated competing against newer contractors offering lower rates. On the other hand, I also see people jump into contracting too early, without the foundational skills that typically come from building a career in permanent roles.

So, when is the right time to start contracting?

In my view, it's when you have developed a strong skill set that positions you as a specialist. You should be able to adapt quickly to new environments and deliver value from day one. This usually takes at least five years of focused, hands-on experience.

And when should you consider stepping away from contracting?

When the constant cycle of interviews, short-term projects, and the search for your next role starts to feel draining. It might also be the right time if you're aiming for senior leadership roles, which are often reserved for permanent employees who have demonstrated long-term commitment. Some contractors look back and regret not making the switch earlier, especially as they see former colleagues progress into management roles.

After a decade or more of contracting, returning to a permanent role can become more difficult. This is not always due to a lack of interest, but because employers often prefer candidates with a stable history in permanent positions, assuming they are more likely to stay long term.

While some professionals are happy to contract throughout their careers, a career path that often works well looks like this:

• Build your expertise in your 20s
• Contract through your 30s to maximise earnings while balancing life changes like travel, buying a home, or starting a family
• Shift back into permanent work in your 40s when long-term stability and career development become more important
• Work toward a senior leadership role in your 50s
• Begin planning for retirement in the years that follow

This approach balances learning, financial growth, and long-term opportunity, helping to set you up for a successful and fulfilling career journey.