[Baypiggies] How do you calculate your hourly wage?

[Glen Jarvis]

> Alex Martelli previously said in an earlier email:

>  But for example if you know you need at least 80,000
> / year (gross of taxes) to survive and pay your mortgage, as a
> baseline you should think of charging at least $80 / hour, even before
> you think of health coverage costs, _not_ around $40.


Alex has hit the nail on the head almost perfectly. After I finished a  
degree, I was out of work for a while and in a complete new area of  
technology. So, I took a big pay cut , moved here, and began working  
for a company in the Bay Area doing Python programming. As an entry  
level programmer with experience, I was paid roughly $80K.

When that fell through (Real Estate Web Site so they saw the crunch/ 
crisis that we're in very early), I decided to contract at $45/hour.  
Well, I didn't know what to do so I became a cowboy and just tried...  
inexperienced or not. I didn't know crap about how to be a styling  
programmer in Python. I ended-up bike-shedding a lot about style  
because it's one of the small areas I could actually know almost  
completely. And, frankly, I have an intense desire to "do things  
right," and style is the first-stepping stone to that for me.

Anyhow, I am still been charging the same rate, almost a year later of  
$45/hour. And, that's why I'm in such financial trouble. I bill a much  
smaller amount than the 40+ hours/week that I work. Worse, the people  
who are hiring now want the super stars (and there are some great ones  
out here - I'm amazed at the talent I see in BayPIGgies). So, I'm not  
quite good enough to get another full-time gig in this market; but,  
many of my clients like me because I at least *try* to do *really*  
good work and am cheap (but obviously slow).

To wrap up with a very exposing (but hopefully helpful) email, because  
I had just finished a degree, I'd already dipped heavily into my  
savings while studying. And, because I'm making much less than I need  
in the big picture, I'm slowly getting into more and more trouble  
financially. I also haven't had health insurance in over a year. If I  
were to have found a way to take the advice that we're giving here on  
the list, I wouldn't be in the mess that I'm in slowly falling into  
right now.

On the bright side, I'm still learning a *lot*  more than I would be  
if I were just working on a regimented task. I'm starting to feel  
myself get past that 'brute force' coding mentality. And, I won't be  
where I am forever. Also, I've learned a *LOT* about how Small  
Business matters (like Taxes, Legal Entities, Billing, Sales, etc.  
etc. etc.)

Stephen McInenerney said in an earlier email:

 > I would love to see a (mini-)talk on how to be a (Python) contractor,
 > from from rates to terms of contract to marketing yourself to  
liability insurance
 > to ownership rights to what (Python-related) skills are hot or not,
 > and what rate they fetch.
 > Plus a redux of what the SBA course tells.

I still have *so* much to learn about Python, but I'd be happy to  
share what I can with regard to contracting, mistakes I've made,  
things I got right, SBA stuff, etc. I've, for example, never not been  
paid, etc.

All the best,



Glen
--
I'm Riding to End AIDS

 From May 31-June 6, 2009, I'm bicycling in AIDS/LifeCycle. It's a 7- 
day, 545-mile bike ride from San Francisco to Los Angeles to make a  
world of difference in the lives of people living with HIV and AIDS.

Please support me and the San Francisco AIDS Foundation by making a  
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Visit: http://www.tofighthiv.org/goto/glenjarvis

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415-680-3964
glen at glenjarvis.com
http://www.tofighthiv.org/goto/glenjarvis

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