You do the math in our head. You think you know how many hours you need to work each week, and how much you must make per hour. But at the end of every month the reality slaps you in the face when you discover you haven’t quite met your goals.
Nearly every day I run into someone who wants to make enough money so they don’t have to worry about money. I want that too. But life’s lessons taught me to be frugal in some aspects of my life. I don’t need a warehouse full of expensive cars, nor do I need a huge house with rooms I never go into. I just want comfort and stability.
So, How Much Money do You Need to Make?
If you freelance, you typically have the ability to set your own rate and hope clients will flock to your service. As an employee or independent contractor…not so much. You’re stuck with the hourly rate given by the company.
Regardless your title, there is one thing that is a constant haunt: Your earnings. Or lack of, depending on how you look at it. As much as you try to validate your rate, you wonder if you can get more. Will your customers pay more? Can you find a job that pays more?
There’s nothing wrong with wishing for millions. The pot of gold may not be too far out of reach if you’re willing to work super hard for it. You have to connect and network like crazy to build your empire, but it can be done.
Suppose you don’t want to work your tail off. Maybe you are earning enough, but don’t realize it. The folks at Freelanceswitch.com has a great tool that allows you to calculate an hourly rate you should charge, or be paid, in order to meet your financial goals. Although this is geared towards freelancers, I use it to figure out how much I need to earn per hour.
This is probably the best tool of this nature that I have found. What I like best is the fact it identifies everything you should consider:
- Personal expenses
- Business expenses (if you’re a freelancer)
- Number of hours you can work
- How much time off you want
- Your savings goal
The key to calculating a realistic number is to be honest with yourself. Play around with it, plug in different numbers and determine how many hours you can realistically work.
Image courtesy of stuart miles / FreeDigitalPhotos.net