Comments on: I made a major career choice today

By: Money Blue Book

Money Blue Book — Fri, 07 Mar 2008 08:34:17 +0000

Well I’m currently taking some time off from my contract legal work as well. Contract work definitely pays A LOT more but there’s the obvious unpredictability…although less so if you know how to roll from project to project. I’ve worked full time before and never enjoyed the trapped feeling I always had…
-Raymond

By: Seb

Seb — Thu, 06 Mar 2008 01:46:26 +0000

I wouldn’t feel bad about it. I was recently in the same position as you are. I was offered a contract position that nearly doubled my current salary. But working as a contractor means you generally don’t get any benefits.

If you don’t have a spouse to piggyback insurance off of, buying your own health and dental insurance can quickly eat into your increased earnings.

Like you, I decided to stick with my day job. The security of a bi-monthly paycheck with amazing benefits from a Fortune 500 are hard to beat. Even if it is half the pay of a contract position.

By: calgirlfinance

calgirlfinance — Wed, 05 Mar 2008 23:51:41 +0000

I often think about looking into becoming an independent contractor, but of course I would need to find a client first. I don’t know what your current work situation is, but compared to consulting, there is one major difference besides the benefits. As an independent contractor you typically get paid for overtime, while as a consultant, I don’t. That one reason I often think about moving to independent contracting!

By: Mrs. Micah

Mrs. Micah — Wed, 05 Mar 2008 22:46:26 +0000

I think that makes sense. As long as they have good work for you and you get the benefits like the classes and such it seems like a good choice right now. Maybe when your debt is paid off and you finish your degree.

By: mapgirl

mapgirl — Wed, 05 Mar 2008 18:46:12 +0000

Honestly, in DC, you have to make triple your regular salary as a contractor to make the risks worthwhile most of the time, especially since the contract rarely employ you for a full 12 months. You’ll end up netting about say, double your salary, and then you have to pay out 12.5% in self-employment taxes, etc. The other upside is the ability to write off a lot of expenses, but the steadiness of a paycheck can really ease your mind.

I’m all for big risks, but if this is the right decision for you, I am sure another opportunity like this will be available again.

By: theAlphaJohn

theAlphaJohn — Wed, 05 Mar 2008 16:58:25 +0000

Deciding to strike out on your own is something only you can decide to do, but given your situation I can see why you made the decision that you did.

I moved to the DC area in 1999 for a job, and I’ve always been a W2. Last October, an old boss of mine tracked me down for a 1099 contract (1 year with option to renew).

Give up my 2 mile commute for a 23 mile one around the beltway? COBRA my insurance? Pay my own quarterly estimated taxes? Blasphemy.

For me, it ultimately came down to working with (not for) a boss I really like, an opportunity to learn something new, and a project that’s trying to cure diseases. More money is nice, but that wasn’t what sold me.

I could probably write a whole blog about being self-employed. There’s a lot of stuff on the internet(s), but never those important questions you need answered…

By: Clever Dude

Clever Dude — Wed, 05 Mar 2008 15:07:54 +0000

Richorlin, the difference between a salaried position and an independent contractor is pretty drastic. You have to consider the cost of benefits received by your company as well as who is bearing the risk (your company mostly if you’re an employee, but YOU if you’re on your own).

The main reason my pay would be so high is because of the risk of the position. Also, the client has a lot of money to spend and thus the negotiated billing rate is pretty high. So high, in fact, that two of us would split the total rate and I would be making the lesser of the two!

Overall, though, I think I’m making what I should given my experience, skills and the area. Sometimes I even think I’m overpaid because I don’t really do that much, but I still get the job done.

By: richorlin

richorlin — Wed, 05 Mar 2008 15:00:59 +0000

Look at it this way: you’re either worth twice what you are currently paid or you are grossly underpaid.

By: No Debt Plan

No Debt Plan — Wed, 05 Mar 2008 13:01:44 +0000

Contracts are a tough thing to tackle sometimes. I work as a recruiter in the IT industry. Short term is especially hard to do if you don’t have the ability for flexibility.

By: fathersez

fathersez — Wed, 05 Mar 2008 08:04:27 +0000

I suppose 4 months is a little short.

Still like you said, knowing that you command such a price in the market place would have given you a nice feeling.

I am sure an even better opportunity is just around the corner.