There is a good chance you will (initially) undervalue your time.
You are paid to know things and to find out how to learn things you do not know. You have to stay in constant training and re-learning. You are an expert in your field. Something you learned two or three years ago? You have to forget that and learn some other thing.
You have to own hardware and software. You have to buy health insurance. You have to save for a rainy day. You have to save for retirement. You want to go out to eat like normal people. You want to buy a house. You have to do billing. Not every client will pay. You have to hire an accountant. You have to pay taxes. You need to file papers with the county and form an LLC.
Are you going to work 8 hours a day 5 days a week? No, you will probably "work" 12 hours a day 7 days a week. Someone calls with work? Are you available? You have to get paid for being available.
Still think $40 an hour?
A few things I have learned (solo since about 1996 but spent the recession years 2007-2011 in a corporate job):
You are not a freelancer. Banish the word from your vocabulary. You are X. X being whatever it is you do/are. You are a company. You are a professional. That's just the work part. You are also a salesperson, a bookkeeper, a marketer, etc.
You will need some steady clients. Clients that call enough during the year(s) to provide some stability. You can't hustle for every single job. Relationships matter. How much stability you need, I can't say, but, ideally, you already have a jump-off client or two already.
You will have to do the numbers on your rate, but, I promise you, it is more than you think and more than you may be comfortable asking for, initially. Remember, your rate covers your availability, your expertise, your equipment, insurance, retirement, etc. If your salary is $75,000 that is not close to how much it really cost to put you in an office, with a computer, health insurance, matching 401k, etc. A company that hires the solo you is also paying for the flexibility to release you back to the wild at the end of a project without having had to hire you or fire you.
Value your time, your skills and yourself. You are a professional.
You are paid to know things and to find out how to learn things you do not know. You have to stay in constant training and re-learning. You are an expert in your field. Something you learned two or three years ago? You have to forget that and learn some other thing.
You have to own hardware and software. You have to buy health insurance. You have to save for a rainy day. You have to save for retirement. You want to go out to eat like normal people. You want to buy a house. You have to do billing. Not every client will pay. You have to hire an accountant. You have to pay taxes. You need to file papers with the county and form an LLC.
Are you going to work 8 hours a day 5 days a week? No, you will probably "work" 12 hours a day 7 days a week. Someone calls with work? Are you available? You have to get paid for being available.
Still think $40 an hour?
A few things I have learned (solo since about 1996 but spent the recession years 2007-2011 in a corporate job):
You are not a freelancer. Banish the word from your vocabulary. You are X. X being whatever it is you do/are. You are a company. You are a professional. That's just the work part. You are also a salesperson, a bookkeeper, a marketer, etc.
You will need some steady clients. Clients that call enough during the year(s) to provide some stability. You can't hustle for every single job. Relationships matter. How much stability you need, I can't say, but, ideally, you already have a jump-off client or two already.
You will have to do the numbers on your rate, but, I promise you, it is more than you think and more than you may be comfortable asking for, initially. Remember, your rate covers your availability, your expertise, your equipment, insurance, retirement, etc. If your salary is $75,000 that is not close to how much it really cost to put you in an office, with a computer, health insurance, matching 401k, etc. A company that hires the solo you is also paying for the flexibility to release you back to the wild at the end of a project without having had to hire you or fire you.
Value your time, your skills and yourself. You are a professional.