It is tough for a contractor to make longer term commitments as his work is either feast of famine. An extended drought between jobs could mean unemployment for long periods of time. The average assignment is roughly six months. Imagine going to a bank to apply for a loan saying you have had 12 jobs in the past six years. Wages, including overtime, can vary dramatically from one month to the next, not to mention the wages lost between jobs.
Budgets are tough to maintain.
Contract life is expensive. It usually means a lot of wear and tear on your car, maintaining dual residences, lots of long distance calls to home and to contract firms looking for the next assignment, eating out, paying for your own insurance, providing for your own retirement and these are just some of those expenses. Obviously, this form of lifestyle is not for everyone. But despite all of the trials, there are thousands of contractors out there that prefer this lifestyle over the more traditional one of direct, long-term employment. If you plan ahead, think it through and arm yourself with enough knowledge about what you want and its impact on your life, the decision may not be as hard as you think.