Feasting On Brownies. . .Every Three Weeks

(Photo credit: Becky Luigart-Stayner; Lydia DeGaris-Pursell myrecipes.com)

Dad, I got a job paying $25 per hour!

It’s not how much you make per hour. It’s how much you make per year that counts.

Never has that been more true than consulting. The most I ever made was $150 per hour. I earned about $100,000 that year. Another time I made about $80 per hour. I earned about $100,000 that year. Because it’s not about the hourly rate. Well, it’s important, of course. But, it’s also about how many hours you work per year.

If you go to work at a 40 hour per week job, you will work 2,080 hours in a year. (52 weeks times 40 hours.) Of course, you get to take sick time and vacation time off of that, but 2,000 hours is a good estimate.

So, if you have an $80,000 per year job, you are making about $40/hour.

If you are a consultant and you charge $80 /hour and you work fulltime you earn $165,600. But, there’s that two week vacation. . .you don’t get paid while on vacation. Take that 80 hours out and you’re at $160,000. That’s good money. No doubt. But, unless you have a corporate gig, you are probably not going to be working 40 hours per week on average. You are going to have to spend part of your time getting the next gig lined up. Let’s say you’re 75% utilized. So, take 25% off the top and you’re down to $120,000. Still an excellent income.

Of course, you also have to pay for your own equipment, travel, office supplies, phone, internet, etc. When you get done, if you’re careful, you make. . .about $100,000 per year. At least I did.

That’s why I describe consulting as being like the hungry man who gets to feast on brownies, but only once every three weeks.

I’ll be talking more about the consulting experience this week.

Rodney M. Bliss is a blogger, author and IT consultant. He lives in Pleasant Grove, Utah with his lovely wife and 13 children. . .all of whom love brownies.