How to set your salary
I never set out to be a business owner.
It was something I fell into and before I knew it, I had to figure out how to actually own a business.
And owning my business also meant owning the mistakes I made. Like the one where I never bothered to save any of the money I made and tax time was a real wake up call and a huge check I hadn’t planned on writing.
I was used to someone else writing my paycheck and having all of my deductions taken care of for me. It wasn’t something that was top of mind once I was on my own.
I’m asked most often how to determine a salary if you’re self employed or are growing a business while you’re still working full time.
To determine your salary, we need to get down to a true goal number. What does your household need from you to function? What are the costs of insurance, benefits you may be paying on your own now, how much do you need to be putting into retirement and other factors related to your personal needs.
Good starting places for those looking to calculate this is to
1. Look at your most recent salary — did this work for you?
2. Check industry standards on sites like Glass Door
3. Ask yourself, how much do you want? While clearly this ins’t science, it’s very important as you grow to have a goal in mind.