Its good to “pick our own salary,” it is necessary to do so to determine our stand on the competitive market. Figure out a realistic yearly salary for yourself, which may be based on several factors:
* Your salaries at previous full-time jobs
* The salary others are making in your field
* A salary that is necessary to maintain your lifestyle, including non-business related expenses
* The salary of available jobs in your area that you are qualified for
If you are freelancing on your own, your salary should include not just the amount you need to maintain your desired lifestyle, but also a reasonable amount of profit. This profit may be your savings or may go back into your business. Also remember to calculate your income after paying taxes, making sure you can live off of your “take-home” pay. After completing this research, take note of your yearly salary goal.
Check your expenses: keep a watch on your Expense.
Adjust for Expenses Related to Working for Yourself:
As you will be working for yourself, you will not have some of the benefits of working for a company, such as insurance, paid vacation, sick days, stock options, and contributions to a retirement plan.
Determine Billable Hours: keep regular check on your billing rate and how much you are making profit while working for particular time frame.
Adjust for the market: You may find there are times to adjust your rate on a project basis, such as if you are working for a non-profit with a lower budget but you want to take the job. This is your call to make, based on how much you want particular jobs, the benefit to your portfolio, and the potential for follow-up work or leads.
You will also find that your rates will need to be increased over time to compensate for increased living costs and expenses. To do so, go through the process again, determine a new rate, and do the proper research to determine what the market will bear.
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