Pricing your work by the hour makes it seem more like a routine service expense, rather than an investment in solving a problem with a custom design. There are situations where hourly pricing works well (e.g.: revisions or regular tasks) but for the most part working out a price based on the project itself is better for everyone involved.
Value-based pricing is a method of figuring out a price for the project based on the value the client will receive from it. It can be tricky to do, as you must uncover a lot of information from the client at the start, including how much they will earn from the results of the project, but once you figure it out it is a very rewarding pricing model.
If a client cannot afford the proposal you put forward, don’t lower your price in order to work with them, instead look at ways you could reduce the amount of work you do for them. If you reduce deliverables the price will be reduced also, but you’re still being paid a fair amount for your skills.