I transitioned from FTE to ~25 hours per week as a contractor and it definitely works for my situation.

If you go this route, make sure when you calculate your rate that you build-in the benefits such as paid leave, health insurance, lunch break, and company holidays. The number might seem high but you can justify it.

We arranged a deal where I work between 0 and 40 hours per week, with the option to work more hours with approval.

Also you might enjoy The Four Hour Work Week by Tim Ferriss