Happy Friday All!
Whew! I’ve been a busy bee lately. It actually took me by surprise as the month started out slow. But just before a brief mini-getaway to Ocean City, MD, my calendar was filling up with interviews to do, deadlines to fulfill and other opportunities. In the midst of it all, I’ve been researching things I need to do to make sure my consulting business is registered and legit in The District. My website is in the making and will be launched soon.
In my research and reading, I came across a nifty tool for not just writers with a “for-hire” groove going. It’s really for anyone starting any business. As a freelancer, one of the things that people ask me or I’ve asked of others is “how much should I charge for x,y,z?” I admit, sometimes I low-ball myself, especially when I know that people are budget conscious in the midst of this flimsy economy. However, I’ve grown to realize that I can’t suffer because I ASSUME that someone doesn’t have the means to pay. At this point, I realize that I produce quality work and I’m worth every penny. While I want to present a fair and reasonable price for clients, I can’t sink my personal finances even before I get started really good with my business. That’s a sure way to have a failure to launch situation.
What I have done is researched the hourly rates and annual salaries of the various positions or duties that I perform. It helps as it gives me a rough idea of what to charge, but sometimes I still feel like I’m coming up short! Thank GOD someone shared this hourly rate calculator with me via an online business group. Presented by the people behind the site Freelance Switch, the calculator asks you to input the dollar figures of your living expenses. You input such things as your rent or mortgage payments, care note, phone, travel, gas, how much you intent to put away for retirement and you input the number of sick and vacation days you plan to use. As you enter each figure it tallies the total. At the end you are told what your “ideal” hourly rate is and your “break even” hourly rate.
While this is extremely useful, you still have to keep in mind to live within your means. I hate to be the one to break it to you, but unless you write a book and broker a multi-million dollar deal where your book is turned into a movie, the Carrie Bradshaw way of living is a total lie. No high fashion, downtown living for you, unless it’s totally in your budget. But even Carrie was so broke at one point he was moved to tears because she almost could not afford to by her apartment that was switching into a condo. Before a friend bailed her out, she was feeling the despair of becoming the old woman living in her shoe(s).
If need be, get hip to a financial adviser. A few of my loved ones have one and they love how their adviser keeps their finances on track. Lucky me my sister-in-law is working to become licensed as such. I can’t wait to get the ball rolling with her. I’m looking forward to charging reasonable prices that work for me and my clients while building that “nest egg.” I got a kid to invest in as well yall.
Click here –> to get to the Freelance Switch Hourly Calculator.
Mahoganie: Musings East of the Anacostia River 
Posted on May 31, 2013
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