How to set your rates as a Freelancer

Sometimes as freelancer working freelance jobs, we get stuck at setting our rate and when we do we seem to question the rate we set for ourselves. It is necessary for me as a freelancer to set my rates for my home business. Here are some tips of how I came up with my rate as a Virtual Assistant, writer, accountant, etc..

Difficulty:Moderately Easy
Instructions
things you'll need:
•Index Cards
•Pencil/Pen

1
Whatever your business is, if you don't already know the going rate for your line of work, research the going rates for your home business. Check out your competitors pricing. You can also check out several websites that will give you the average rate. Try www.Salary.com or www.Payscale.com. Try out their salary calculator to help you get a sense of the going rates for your field.
2
Take into account the many overhead costs of not only the work that you are doing but the cost to keep your business running.
Examples
-Insurance (health, dental, life, property, disability, unemployment)
-Continuing Education
-Taxes ( Federal/State/FICA - both employer and employee. About 35% - 40%)
-Retirement savings
-Overhead costs (rent, equipment, etc.)

Remember that the company or individual that hires you to do freelance work does not have to pay for all of the above when they hire you on a freelance basis. It is a way to justify your rate
3
Take the total $ amount for your going hourly rate that you found during your internet research and add 5% - 15% to cover your overhead expenses. I'm advising that you add the overhead charge because if you start negotiating down it is my hope that you do not accept less then the industry rate because if you do, then you would be under earning.
4
Use index cards to create a cheat sheet of the various rates you have for the various things you do in your business. Having this near the phone or your computer helps you stick to your rates and have confidence when quoting over the phone. Remember though if there are many things involved, write down what the client needs then let them know you will get back to them so you can add up everything you will be doing for them. This way you can take time to think about how long it will really take for you to do the job and allot in enough time and how many hours to charge.
Tips & Warnings
•Evenutally I came up with $25 hour - $35 hour rate for my Assistant work. I also focused on finding my niche in the an industry that would pay at that rate. Usually at the top Executive level who does a lot of traveling and could use my services remotely.

•Use time management when taking on freelance jobs. You need to allot enough time to work for various employers, have some down time in between.

•Remember the rates may vary for each freelance job.

Resources
•Salary.com

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How to Create a Spending Plan

It's time to dream big, set goals and actually reach them.

A spending plan is not a budget. Why? Because a budget can be limiting where as a spending plan allows you to set a goal then adjust your plan as you more forward towards that goal.

Difficulty:Moderately Challenging
Instructions
things you'll need:
•Excel Spread Sheet (optional)
•Lined paper and pen


1. If you have no idea as to what you spend, start writing down what you spend on a small writing pad. Write the date and all the items you have purchased that day, even money you may have contributed. Whatever money came out, also write down whatever money came in. If you have an excel spreadsheet start in putting your information. You will want 3 months of numbers to work with. If you already have a system for yourself where you keep track of your money you will be able to take the money on your reports and place them into the upcoming categories in step 2.

Another way to tally up numbers is if you have kept your receipts; sort them by month and date. Prep them to use for Step # 2.

2. Make three (3) columns on paper and label them by month. In the first column , list on the left hand side all the way down the page the following categories:
- Spiritual (includes donations, self nurturing, self improvement, etc.)
- Rent
- Utilities (includes: electric, gas. Etc.)
- Auto ( includes: car payment, insurance , gas, repairs, permits, etc.)
- Food ( includes: eating in, eating out, snacks)
- Clothing (includes doing laundry, cleaners)
- Personal care
- Independent care (if you have kids or pets, et c.)
- Education
- Entertainment
- Personal Business ( includes postage to pay bills, computer supplies, etc.)
- Vacation
- Savings
- Debt repayment

3. Tally up your #'s or receipts to fit into the categories above for each month. You can use your bank statements as well, yet keep in mind you want to create a simple system for yourself that you enter your numbers consistently in some kind of format so you are not overwhelmed when working with your spending plan.

4. The numbers of what you have really been spending will be what you entered into each column. When you total up all the numbers of every row, you will get a total. Subtract that total from your salary after taxes. If you have some money left over great, if not you will need to look at where you can trim.

For some people, they may be spending in one area too much, such as food out or too many coffees. Sometimes even in personal care. One might be obsessed with buying hair products. Where ever there seems to be some over spending look into that area to make sure it is not escapism. If it is it may be a great idea to stop buying so many hair products and put that into vacation.

Tips & Warnings
•If you would like to know the average amount you spend either by category or on a monthly basis you divide all your totals by the number 3. For the average monthly expenses it would go like this: Jan - $1,313 Feb - $1,207 March - $1,345 Total all 3 months = $3,865 Divide $3865 / 3 = $1,288 $1,288 would be your average monthly expenses If you would like to break it down by category it would go as follows Personal Care Jan - $3.45 Feb - $43 March - $35 Total up all three months for the category of Personal Care Your total would be $81.45 Divide $81.45 / 3 = $27.15 $27.15 is the average amount you spend on personal care. What do you do with that information? You take $27 as the amount you will spend monthly on personal care. It is best to use $27 and not pinch, not deprive yourself. That is the average of what you spend so don't try to do less and to live within your means try not to go above. Yes you could pinch and do without, yet it is best to take care of yourself and not deprive yourself, and it has been my experience if you want spend more than you have to earn more. There is no real way of getting around it.