Figure Out What You Need to Earn: A simple hack for freelancers to get started

My Finance
1

There are only so many ways you can reduce your expenses and cost cut. Sometimes, people are in debt simply because they do not earn enough to maintain their quality of life. So, how do you figure out what you have to earn to get financially fit and live your best life?

Calculate your target salary

Here’s how:

  • Expenses + Debt Payments/Savings Goals = Total Net Income
  • Total Net Income Need / .70 = Total Gross Income
  • Total Gross Income x 12 = Target Annual Salary

Example:

  • Rs 50,000 + Rs 20,000 = Rs 70,000
  • Rs 70,000 / .70 = Rs 1,00,000
  • Rs 1,00,000 x 12 = Rs 12,00,000 - This person would need to earn Rs 12,00,000 a year to maintain their lifestyle.

Doing the math and figuring out exactly what you need to make will make it tremendously easier to decide your charges or even ask for a raise or to apply for the new higher paying job!

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@Vanshika_Mehta Would love to hear your insights on this!

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I lost my job due to the pandemic and have recently begun my journey of Freelancing… getting a hanging of it slowly and steadily! This short math helps me back calculate how many clients I should take monthly to pay for my EMIs, thanks for this @Dev

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