Comments on: A different way of looking at income

By: nina

nina — Mon, 09 Feb 2009 13:02:13 +0000

Well, it’s true that people working on regular jobs are being laid off due to global financial crisis. Things can change overnight that’s why we should have emergency funds whether we are employed or free-lancing

By: Celine

Celine — Mon, 09 Feb 2009 11:17:16 +0000

@ Nina: Thanks for dropping by I agree with you, but it seems like even stability is a myth even when it comes to regular jobs. Many people who thought that their companies were doing well, or that they have a stable job find themselves being laid off now.

If someone in a regular job can find a way to be very productive at work to avoid overtime, as well as find an alternative source of income that isn’t presence-based, then they can feel more secure financially. They won’t be solely dependent on either the stability of their regular job or the success of their alternative income sources.

I also agree that unless project milestones are well-defined, per hour rates are the next best thing. But I always prefer charging by milestones. My preference is dependent on my businesses, of course. The best way to charge probably differs depending on the industry.

@Cyramiles: Welcome to Frugal Pinoy Tim Ferriss has some great ideas, but the book can sound pushy sometimes. Like all business books, it’s best to take what works for you and don’t worry about the rest.

By: cyramiles

cyramiles — Sun, 08 Feb 2009 15:48:10 +0000

Hi there..

I happened to stumble on your blog today and I really liked it. I hope you don’t mind if I’ll add you in my blogroll. I find it easier to follow your blog.

Anyway, I am reading the book too of Tim Ferriss. I wish I learned earlier about all these telecommuting or freelancing types of income opportunities. Though it is not yet too late, i have been a corporate slave already for almost a decade now.

And I agree. Things are better if we are slave with our passion..

By: nina

nina — Sat, 07 Feb 2009 15:52:36 +0000

For consulting, it’s not always good to charge per milestone. In our company (we do envi and engineering consulting) we only cost job per milestone, if the detailed scope of work is known. It’s more profitable but risky that’s why the scope of work has to delineate the extent and limitation of the tasks.

When the scope of work is not defined well, charging per hour is the best way to go to minimize risk. In our company, we call it time and materials not to exceed certain amount. We charge all our time (professional fees based on the actual number of hours worked times the hourly rate) and materials (equipment rentals, print-outs, mileage, other direct costs plus add-on fee which is usually 10% or as defined in the proposal/contract. Time and materials may not be as profitable but risk is minimized.

By: nina

nina — Sat, 07 Feb 2009 15:29:16 +0000

In my previous job, I get paid well but I had to work more hours, I’m on call 24/7 and worse, I have no overtime pay. Then reality dawned to me that the company doesn’t really pay me much coz based on the actual hours of work I’m rendering, my per hour rate is dirt cheap. I quit that job.

Knowing your per hour rate can also help you to decide when to do things by yourself or pay someone else to do it.

I can’t blame people who look at how much they can REGULARLY bring home at the end of the month because they also consider stability and other benefits. You may find job with bigger pay per hour but that job may not be stable or doesn’t have any benefits. There are many factors really. Both monetary and non-monetary. For me, it boils down to your priorities, goals…