Skip to Content
The Short Answer

Self-Employed? Determine Your Ideal Hourly/Daily Rate

Factoring your total tax liability into your hourly/day rate calculation can help you stay out of debt and have more money to save.

As if setting up a budget isn't a difficult enough exercise all on its own, being self-employed adds another level of mental gymnastics to the mix. 

If you're a salaried employee at a corporation, your taxes have already been removed from your take-home pay. You know that your monthly expenditures--rent, food, utilities, loan repayments (student, auto, credit cards), tuition, child care, etc.--need to total less than your paycheck or you won't be able to make ends meet, let alone save money. 

To view this article, become a Morningstar Basic member.

Register for Free