If you are charging by the hour then you've already lost. Contracting/consulting, like any business, is about exchanging value. You want to be fairly compensated for the value you're providing to a client.

> Start with the minimum wage you would like to take out of the business. How much do you want to earn a year? Remember, this is the minimum figure you could survive on. We will increase that number later.

Your lifestyle or annual expenses have little to do with the value you're providing, so why in the world would you peg your rates (and cap your income) based on it? If you ever move from SF to Idaho are you going to halve your rates just because your living expenses did?

And why limit yourself to $240k/year (what the current top thread is suggesting)? That's not even a crazy number and already you're forced to defend the $240/hr rate. Is that an argument you want to have every time you pitch a project?

I highly recommend reading the book Value Based Fees by Alan Weiss.[1]

[1](https://www.amazon.com/Value-Based-Fees-Charge-Youre-Worth-e...)