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So, circumstances of life have got you to go into a #freelance/consultant mode. This could be due to choice - you are fed up and you want freedom. Or this could be because your former company changed its biz model.
The question is how do you cost your time & energy?
#Thread
The question is how do you cost your time & energy?
#Thread
this is a question that i have grappled with, on and off since 2003. While i had long stable spells of FT jobs, the urge to go independent would bite me. Once a company i worked for shut down. So, there was the involuntary thing too.
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I find the simplest way is to look at your last drawn salary - i would use the gross amount for calculation, and divide it by the number of working days.
so, if you earned 66,000 per month, and there are 22 working days in a month, your per day rate is 3000.
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so, if you earned 66,000 per month, and there are 22 working days in a month, your per day rate is 3000.
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And your per hour rate is 250. Any thing you get over this is savings for a rainy day.
On rates under this, consider 3 things:
a) what are you doing with that time
b) will this add to your portfolio substantially
c) will you enjoy it.
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On rates under this, consider 3 things:
a) what are you doing with that time
b) will this add to your portfolio substantially
c) will you enjoy it.
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it is ok to do stuff below the rate you have arrived it, if it matches atleast two of the 3.
i taught at Rs.350 per hour because it allowed me to study and prepare, and it added to my portfolio. And, i enjoyed it. i blocked away early mornings for teaching.
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i taught at Rs.350 per hour because it allowed me to study and prepare, and it added to my portfolio. And, i enjoyed it. i blocked away early mornings for teaching.
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You have 160 working hours a month.
plan it wisely. Some of those hours you will sell at 3x your rate. Others you will sell at your rate. And, there will be some you sell below your rate.
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plan it wisely. Some of those hours you will sell at 3x your rate. Others you will sell at your rate. And, there will be some you sell below your rate.
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The challenge is that while the last is easier to find, it will clog up all your 'creative/productive' time.
You shouldn't really do more than 25% of this.
Your goal should be to find the 3x rate projects. And, you need enough time and mindspace to do that.
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You shouldn't really do more than 25% of this.
Your goal should be to find the 3x rate projects. And, you need enough time and mindspace to do that.
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find a good CA. get advice on how to invoice, how to pay advance taxes, and not get overwhelmed by Govt paperwork.
Find out what is deductible
Pay advance taxes. Else the end-of-year load is too high. pay as you earn. Else it will overwhelm you.
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Find out what is deductible
Pay advance taxes. Else the end-of-year load is too high. pay as you earn. Else it will overwhelm you.
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if you need help - reach out. Social media communities help. Your own professional network will help. be ruthless in contacting people, but draw the line at spamming them.
No one is waiting to discover you. You need to make the attempt to reach out :(
Good luck.
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No one is waiting to discover you. You need to make the attempt to reach out :(
Good luck.
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