I sort of leapt, and was sort of pushed, into self-employment. Now I bill by the hour, and am making about 50% more than I did as a regular salary jockey. Of course, I work a lot on weekends and in evenings, but the checks keep rolling in. I'm not actively looking for new clients, have way too much work. And if I want to take an afternoon off to play tennis, I take the afternoon off and play tennis. Don't need to ask anyone.
Of course, my clients don't have to pay my health insurance, and if they're unhappy with my product, they just stop using me. No severance. No vacation pay. But still, I'll take the higher payments.
If you're self employed, be sure to set up a SEP IRA. And be sure to take about a third of your billing receipts and set them aside for taxes.
Be sure to make quarterly payments to the IRS or they will absolutely crucify you on penalties and interest (I learned the hard way!)
True. While I only have a few clients (just lost two this past summer), what I bill someone while working from home is more than double what I could make out in the market. Actually, sometimes it can be 3 or four times as high, if I take into account other considerations.
But again, I am responsible for all my own computer repairs, upgrades, software, etc. Also, if (I work in marketing) I send something to a third party and the job goes south for whatever reason--I still have to pay that vendor. That is a nerve wracking aspect.