The end of the tax year approaches.
This is my second year in business (and my first full year in self employment). It’s a tough old job this freelancing gig and I have been ridiculously lucky in terms of clients and workflow. Put it this way, I’ve not had to eat beans yet but what I have been doing (and not entirely through naivety) is undercharging.
In the beginning I was just happy to be working and stupidly charged the same as I would be getting in full time employment. This quite clearly, left me somewhat out of pocket. For the last year I have been doing a bit more research, working out my finances better and creeping up the rate as and when I can. Then I needed to replace my iMac (and pray to the Apple Gods to keep my MacBook going a while longer). Goodbye any profit.
There are many guides as to average hourly and daily rates and I am keen to keep below them. There is also an abundance of blogs on the subject, this one from Lifehacker in particular struck a chord with me. So, big leap for this new (tax) year, I have decided to do it properly. I have set my hourly rate (still below the local average but more importantly not below what I think I am worth) and made sure to contact my clients with the change but to also keep ‘special arrangements’ in place with my core customer base.
With 40 fast approaching (WTAF) and a keen interest in keeping my current work/life balance going forever, Mrs E is finally growing up….