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I believe the numbers. It's easy to see $100 in your bank account and forget about the $20 gas, $20 depreciation, $20 insurance, $20 wear&tear, it actually took to earn it.
My dad started a consultancy late in his working life, after the company he was with went belly up. He kept meticulous records. Time spent on bids, meetings, travel, billing, mileage, not to mention the work the client was requesting. When all was said and done he was earning under $2/hour. He shut it down and picked up a job driving for a ticket agency for 5 times that.
My wife went through the same kind of thing. She decided to pick up a bit of extra cash by working per diem for an in-home health agency (she's a nurse). I added up the costs for her and she realized that it was pretty much a wash -- if you didn't count her time. Buh bye per diem.
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