I just blew 20,000 in a year. I am now broke and unemployed. I have a physical defect that drains my energy from doing everyday things. I can’t foresee how I am going to be able to move out of my parents home before the age of 30. What is some advice?
Do some simple math:
cost to live – basics (rent, utilities, food) = X
cost to hire ppl to do “everyday things” (errands, cooking, etc.) = Y
X + Y = the nut
The nut is what you must cover. X will vary wildly based on location – NYC versus Lubbock, Texas for example. NYC may be 5x more expensive. But Y is pretty stable across the US so expensive cities may only be 20% more expensive.
Annual Nut / 1200 = Hourly Rate you must be able to charge for your brain.
Perhaps you do consulting work, perhaps you tutor, perhaps you build software – what is your brain worth? What are you doing to make it more valuable? Does anyone think your brain is worth paying?
If you need to cover 40,000/yr in expenses, including dry cleaning, personal chef services, lawn mowing as well as rent, utilities, food costs – you could do this in Dallas, TX living smartly – possibly even in NYC, then you need to be able to charge $33/hr after taxes which is approximately $43/hr before taxes.
Why 1200 hours?
A regular 40 hour a week job is 2000 hours a year (2 weeks vacay). Expect as the “owner” a 60% utilization rate. You need to plan to spend 40 hours a week working so you can charge out at least 60% of your time. The remaining 40% of your time is spent on the BS of running a business. Filing paperwork, commuting to clients, etc. You may be able to hire for some of these activities, but the more you have to hire others to help, the more you need to charge hourly.
If you can charge $50-100/hour for your brain and can work 30 hours a week, you’re only living with your parents because you’re afraid. Grow a pair and move out.
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