How much money should a person make

Enough to live or how much money should you make?

Many start-ups worry about how much they have to earn in order to have enough to live on. The level of income is also an issue for self-employed people who have been active for years.

Not only do you have to think about this topic in the business plan, you should also do it later. Unfortunately, there are enough self-employed people who work a lot but cannot find a green branch financially.

In this article I also think about income, expenses and getting rich on the Internet. How Much Money Should You Make?

Why you can't get rich on the internet


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It is of course provocative of me to say that you don't get rich on the Internet. That's exactly what many new website operators and bloggers, YouTubers and Instagrammers, but also classic company owners, expect from the Internet.

And yet there are so many examples, especially in America, where young Internet founders have become millionaires overnight or are generating at least five-digit monthly income.

But reality looks different. Very few of them get really rich and that is mainly because of other webmasters or bloggers who want to get rich. Make money online websites and offers are one of the most profitable niches on the internet. And unfortunately, many of them are not particularly serious.

But with enough commitment and know-how it is quite possible to earn a living on the Internet. Be it directly with websites or indirectly by selling your own services and products on the Internet.

But even if the Internet offers many advantages that can be cleverly used to get more customers and thus more money, it is not much easier than in normal business life.

Earning money on the internet - a question of attitude

First of all, the question of “making money” is also a question of attitude. Some just want to publish content and not earn any money, others want to at least get the expenses back, i.e. server costs, traffic, domains etc.

And then there is the group that I belong to. This group has to earn money with the Internet because they are self-employed and there is no boss (or the state) who transfers a fixed salary every month.

It should be clear that as a self-employed person you have a different attitude towards making money than someone who runs a website just for fun. Unfortunately, this is poorly understood by many idealists who condemn any attempt to make money from a website.

But what strikes me again and again is that even self-employed people don't think about making money with one hundred percent consistency and prefer to pursue their trade or work. That's okay as long as the money still lasts until the end of the month. Unfortunately, there are always examples where it is not enough, especially when problems such as illness arise.

Enough to live is not enough!

The attitude that the income from self-employment should be enough to live on is simply wrong. This has to do with the normal ups and downs of a self-employed person's income.

The following factors influence the different levels of income:

  • Seasonal fluctuations in orders, customers, income
  • fluctuating economy (rather long-term, but also important)
  • Development of competition in terms of offers, advertising and prices
  • Your own health and that of your employees
  • etc.

Especially when you are self-employed, you either have too many orders (or inquiries) or too few. Too many cannot be fulfilled and in some cases you have to refuse. But it is difficult to compensate for too few and earn too little. The golden mean, with exactly the right number of orders and thus income, is rather rare.

In addition, when calculating income, many self-employed people and founders simply take the weekly working hours and then calculate an approximate hourly rate from this.

So 8 hours x 20 days = 160 working hours per month. If you want to earn 3,000 euros, you have to earn 18.75 euros per hour.

The reality is different. As a rule, you only work 60-70% of your own working hours on projects that really bring in money. The rest of the time is spent on unpaid work, such as writing offers, bookkeeping, warranty, administration, bureaucracy, etc.

That alone means that you should set your hourly rate higher and the failure risks mentioned above are not even included. You should also keep in mind that as a self-employed person you are responsible for your retirement provisions and also have to dig deep into your own pockets for health insurance. Not to mention other insurances and the rising cost of living. And of course you shouldn't forget income tax.

Last but not least, as a hard-working self-employed person, you want to afford something after your 12 or 14 hour working day. All of this ensures that you should calculate far higher.

Thus, if you aim to earn 3,000 euros per month (on average), you should aim for at least 4,500 euros in income. Due to the factors mentioned above, the hourly rate increases from 18.75 euros to at least 50 euros net. And that's really the lower limit. This means that you will have very good months, which will then make up for the bad months.

Visions and realism

Now some will say that this is often not possible in today's market situation and the competition. There is great price pressure everywhere and all customers are only looking for the cheapest price. None of this is wrong, but that's not an excuse. You are not self-employed to gnaw on starvation, but to be able to live decently. To build something up in the long term.

If the price war is too big in your own niche, you should look for alternatives:

  • Are there other areas that I can also serve where there is less competition and price pressure?
  • Can I differentiate myself from the numerous competition in my industry with certain offers, services, etc. to such an extent that customers are willing to pay higher prices?
  • Can I generate more sustained income instead of constantly fighting for new customers?
  • etc.

There are many opportunities to earn more than just the bare minimum despite competition and the self-employed should definitely have a vision. A vision of where you want to be in 3 or 5 years and what you want to earn then. Such a vision helps to make difficult decisions and to set the right course in the long term.

And here the circle closes again. Getting rich quick can be possible, but it won't work for most. It is more important to think long-term and to set yourself financial goals that go beyond “it should be enough for life”. Then you don't have to be afraid of a phase of illness or retirement.

What experiences have you made in this regard? Do you have just enough to live or does it look better? What tips can you give from your own experience?

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