April 2017 Atypical Life Income Report

Welcome to the fourth monthly income and expense report from the Atypical Life family. We are pleased to share this with all of you, so that you may have the inspiration to achieve financial independence and freedom from the man sooner. As an atypical family, this income and expense report will look very different to most family budgets, however, it is 100% real and is achievable under the right circumstances.

I share my finances to inspire others to reach for freedom earlier. I hope to demonstrate:

  • Income can be generated in multiple ways. The regular 9-5 job is not the only way to make money and is also the best way to be a slave to the man.
  • Lowering expenses is really the path towards financial freedom. The lower your expenses, the more you can save. Also, with lower expenses, it takes fewer savings to live on.
  • Side Income can allow you to be free from the man sooner than just saving.
  • It is possible to have low expenses.
  • Becoming an expat is a great way to financial freedom
  • To keep me accountable.

Tracking Your Money

Keeping track of your money is the number one way to reach financial independence. We track all of our income and expenses and then analyze it all at the end of the month for you.

Using Personal Capital is the best way to aggregate all of your accounts into one nice easy view. With your accounts spread across so many different platforms, it is hard to get a whole picture of your finances. Personal Capital gives you a view of where you are, if you spent too much, saved too little, or went into debt. Keeping track of your Net Worth on Personal Capital is super easy.

The best part of Personal Capital’s service is that it is free! It fits in perfectly with our frugal sense and allows us to track and reach financial independence faster. Check out their retirement planner to estimate how far away you are from retirement. It is one of the best I have seen for those of us pursuing FIRE.

If you haven’t started tracking your finances, it is not too late to start. Give Personal Capital a try and you will soon be on your way to being a personal finance guru.

Income

IncomeAmount
Company Match$570
Expat Income$1,266
Interest Income$5
Dividend Income$56
Other Income$102
Salary (Mr. Atypical)$6,467
Salary (Mrs. Atypical)$58
Total$8,524

April was just another normal month for us in the Atypical household. We had our regular salary and our wonderful, but regular expat income. This expat income is a 20% location premium or hazard pay in expat vernacular. It is additional income for us that is grossed up by the company, so we do not have to pay taxes on it.

My company has a fairly generous 401k match of 9%, as long as we contribute 6% to the 401k. This goal is very easy for us to achieve, as we contribute 50% of our income to the 401k. There is one caveat to my 401k contributions, though. They are only calculated on salary, expat income is not included, so 50% of $6,466 goes to the 401k each month to prepare us for financial independence. The 401k matching contribution is free money and we make nearly $6,000 per year from it.

Expenses

ExpensesAmount
Business$143
Entertainment$17
Fees$6
Food$220
Home$325
Insurance$74
Medical Expenses$71
Shopping$55
Taxes$1,065
Travel$743
Total$2,719

Our April expenses were expected and slightly under budget! We had our lowest monthly shopping budget to date at only $54 for the entire month.

My parents were in town for the first 2 weeks of April, which means more dining out and exploring. We tried to show them a good time and that involves traveling. We took a week long trip to Gansu province where we got to see numerous Danxia formations and got the must do in China done, visiting the Great Wall. Introducing my parents to the local food is enjoyable, but certainly more expensive than dining at home. However, this month we were able to reign in the food expenditures because we were eating local Chinese. Having my parents here for a few weeks gives us a feel for what the cost may be to live when we have kids in the future.

As part of our planned expenditures from the Chinese bonus we received in January, we treated my parents to roundtrip flights to Gansu. Both of their birthdays are in April, and we are so appreciative of them coming to visit, we felt that covering the flight was a great idea.

Our Gansu trip spread from March 28 – April 4, so is split over 2 months again. The portion spent in April was $743. This amount is lower than the March portion because it includes my parent’s reimbursement for half of travel expenses. Because my parents do not have a free way to get RMB to spend, we are covering all costs and they reimbursed us at the end of their trip via PayPal. To read more about our trip and how we did financially check out our post here.

April 2017 saw my lowest monthly shopping expenditure ever! We spent only $55 which included a new chain for my bike and a new skillet. Both of these were replacements for broken parts at home. Our low expenditures for April prove that it is possible to not buy stuff. After 5 years of buy, buy, buy, you can rid yourself of the habit and only buy the things you need.

Our insurance for the month is on an accrual basis because we paid for the year entirely in December. We dropped our company sponsored health insurance that cost us $250 per month and the company $750 per month in favor of a local insurance company that was ~5300 RMB or $890. This covers us for all medical expenses in Greater China and also qualifies us to use the supercharged investment vehicle, the HSA. My parents tried out acupuncture while they were here, but didn’t use all of their sessions, so we paid for 3 future acupuncture sessions. Acupuncture cured Mrs. Atypical’s back problems, so we are believers.

Our grocery and dining came down to normal in April. In March we spent, $427 and in April we spent $220. Our dining budget is always pretty small because we don’t eat out very often and when we do, our favorite restaurant cost $5 for the 2 of us. We get 兰州拉面 pulled noodles from a noodle shop within walking distance of our apartment.

The HSA Experiment

Our HSA, currently residing at HSA Bank, incurs a fee of $2.50 per month for a balance under $5,000. We will incur this fee and an additional $3 per month on that account, so we can keep all of our HSA money invested at TD Ameritrade and buy VTI, the best possible investment vehicle. VTI is the ETF equivalent of my favorite mutual fund VTSAX, Vanguard Total US Stock Market Admiral Shares.

After 2 months on the TD Ameritrade platform, I have figured out how to purchase my one ETF without issue. I was able to contribute an additional $1,750 into the HSA bringing our total investment to the maximum $6,750 for 2017.

The investments made into the HSA will save us a good amount of tax for 2017. At the 25% tax bracket, if assumed the HSA contributions are taken off the top, it is $1,688 in tax savings. I will be in the 15% tax bracket after all of our savings so, even there our tax savings are $1,013. These savings help to accelerate our path to financial freedom.

Taxes

Everybody hates taxes. They eat away at our income and we never even get a chance to see it. Taxes were 39% of our expenses for March totaling $1,065.

There are 2 certainties in life, death and taxes. ~Benjamin Franklin

After doing a review of my tax situation, I approached my tax preparation company about reducing my estimated taxes for 2017 and the future. I showed what I would save into pre-tax investment vehicles:

  • $18,000 to the 401k
  • $5,500 Mr. Atypical Traditional IRA
  • $5,500 Mrs. Atypical Traditional IRA
  • $6,750 to the family HSA
  • Total Value of $35,750

This is able to reduce my taxable income significantly, and when combined with personal and standard deductions on the 1040, it brings our taxable income very low. The purpose of reducing our tax withholding is because we know best how to take care of our money. The government obviously does not know what is best for me. We can put our money to work as soon as possible by investing in VTSAX and VTI, without waiting for a tax refund at the end of the year. This can gain us upwards of 12 months of growth (or decline…). It also allows us to raise our contributions throughout the year to achieve a healthy total portfolio to pursue freedom sooner.

I would never use a tax preparation company right now if it was not provided by the company. Taxes are not nearly as complicated as they are made out to be. Due to the tax equalization policy that my company implements for us, we have to have a professional tax preparation firm handle our taxes.

April saw the completion of our taxes, albeit after the normal April 15th deadline. Our theoretical tax liability for 2016 was $15,565 and we had paid $15,378 meaning we actually owed taxes on the return for the first time ever. This is a major bonus because the government did not get a free loan from us.

The way our tax return actually worked is a lot more complicated because we got over $7,000 in tax return that was then remitted with the additional $187 to the company.

Since we had the huge return in the bank account for a little while, I took the chance to max out my Traditional IRA for the year with a contribution of $5,500. With that final contribution, I have maxed out all pre-tax savings accounts by the end of April besides the 401k. Now to see how much more we can save on the year.

Blogging Update

April saw a lot of changes come to this blog and its secret sister travel blog that we also run. All of these changes were behind the scenes, so hopefully, there wasn’t much to notice on the actual site.

Blog Speed

We got feedback that our site was slow to load in the US. We always assumed that it was super slow to load because we live in China where internet service sucks and the server is in the US. Using a VPN to bypass the “Great Firewall” slows down traffic because of the encryption to get out of China.  Not using a VPN means we are a long long ways away from the server. Because of those reasons, I thought the server was probably fine.

So with concrete feedback that our site was slow, I delved into Google and did my research on how to speed up a site. I came back with a huge list of things to go, not the least of which was to switch to a VPS, virtual private server.

We were hosted at Bluehost on their shared hosting plan. I attributed a good amount of the slowness to the way shared hosting works, so we decided to upgrade. I enjoy being able to tinker with settings and optimize everything myself, so it made sense to build our own server. With Bluehost, the VPS was still pretty well managed for you, so I went with Digital Ocean, where I created a new Droplet, installed Ubuntu 16.04 and used EasyEngine to install WordPress.

EasyEngine made the installation very easy and straightforward. To go along with the standard WordPress install, behind the scenes there is:

  • Nginx webserver
  • MariaDB (a better updated version of MySQL)
  • php7 (the current latest and greatest)
  • Redis Server (an object cache)
  • fast-cgi caching (Nginx functionality)
  • Let’s Encrypt (free open-source software that issues free SSL certificates)

You will notice 2 server side caching programs in the list. These work together to cache and speed up our websites significantly. When I started the load time for our homepages were on the order of 10s and now they are down to 1-2 seconds depending on location. The next step in the coming month is to setup a CDN to deliver the content locally. The biggest benefit of the CDN hopefully will be a faster experience for our China users and ourselves during editing.

The hardest part of the migration effort was moving the media/uploads folder over to the new site. Because I am in China I could not get rsync to work between them without timing out. Due to this issue, I bought WP Offload S3 by Delicious Brains and now have all of our media hosted by Amazon Web Services. The WP Offload S3 plugin allows us to push all of our media to Amazon and then bring it back locally once installed on the new server. This service will also integrate very well with the CDN from Amazon, Cloudfront. Both of these services are free for the first 12 months, so we are certainly starting here!

As part of the migration, I also broke our multisite up and made individual installs of our 2 websites. This makes individual management of them easier because they have different target uses.

Traffic Growth

Our next major goal is to actually get people to read our content. It is kind of demoralizing starting out when you write a bunch of content, but nobody actually reads it. This month saw several concrete steps towards increasing our traffic.

First, I signed up for the Billionaire Blog Club. Paul has tons of free content to share with all of us about how to start a blog and the steps it takes to create a successful one. What drew me to his courses was their similarity to Elite Blog Academy while still being reasonably priced. We paid only $128 for a lifetime membership. His claim to fame is being able to start successful blog after successful blog instead of just teaching how he did it once.

Second, I started our Pinterest account and got it rolling with BoardBooster. BoardBooster allows me to auto-pin various pins on my boards and really get it working automatically for $0.01 per pin. I paid $10 to get 1,000 pins/month. Following Paul’s tutorials on Pinterest, I was able to optimize my SEO on my boards and start getting them full of awesome content. I currently have gotten on 4 group boards and feel like I am going to start experiencing growth on Atypical Life soon.

Check out and follow the Atypical Life Pinterest account here.

Traffic growth hasn’t really started too much yet, but after having prepared, I am confident it will begin soon.

Homepage

The homepage got a redesign in April. The new design, I think, looks much more professional than just the plain-Jane blog post list originally. Thanks to Thrive Themes and their email course on building a better homepage for the inspiration. I hope you all like it. I have plans to play with the design more in the future, but for now, all changes will be done on my development server at home.

Savings

In total, we made $5,803 in April and were able to save the majority of that into investment funds. It was a very successful month financially, but that doesn’t matter if we did not enjoy ourselves. We should not kill ourselves to reach financial independence. You should enjoy life all the time, knowing in the future it can be even better.

“Love the life you have, while you create the life of your dreams.” ~Hal Elrod

My parents came to China to visit and we enjoyed a wonderful trip to Gansu province to experience China. It is nice to know you are loved and that people will travel half way around the world to come and visit.

Soon we hope to have side income from our blogs to add to our monthly income report. 2 years from now, the plan is to transition from side-income to only income and be free.

How was your April? Are you heading towards financial independence as well? Let me know in the comments below.

If you enjoyed this post or found it useful, share the love and pin it to Pinterest!

Atypical Life April 2017 income report. We made $5,803 in profit this month. Blogging is coming along as we continue to invest in it to bring our dreams of freedom to fruition.

How to Start a Blog: Easy

Are you thinking of starting a blog?

I started Atypical Life 3 months ago and have helped Mrs. Atypical with our other blog coming on 2 years now. Let me walk you through the easy part of how to start a blog.

First we have to understand what is a website or a blog and how does it work. Without this understanding and just blindly following tutorials, you will get set up, but then never be able to fix the inevitable problems that arise in a complicated system.

What is a blog?

A website is simply a named connection (domain name) to another computer that houses the files you are looking at. Every computer is given an IP address, and a DNS or domain name server, correlates a URL address to the IP address. This allows you to type an easy to remember URL into the browser and the internet magically can find the correct computer to connect to.

So the first step of setting up a blog is to get a computer or server to host your website. In theory, you can buy your own server, set it up in your office, connect it to the internet and run it from home. However, this is a difficult task and takes a lot of up front money to setup. It also does not come with customer support.

This is where Bluehost comes in. Bluehost is a web hosting company that hosts websites and blogs. They make the process of a self-hosted blog very, very easy. They provide all of the hardware requirements for you and also provide the base-layer software to run your new website or blog. In the 2 years we have been with Bluehost, we have had less than 1 day of downtime from server issues. Over 99% availability on a website is outstanding.

The best part is if you sign up through this tutorial, you will get a special rate of $2.95 per month for shared hosting.

Reasons to sign up with Bluehost:

  • Free domain name with hosting purchase
  • 99+% server availability
  • Spectacular customer support available 24 hours per day, 7 days per week
  • Custom-built servers to create a stable environment for your blog
  • Bluehost will grow with you and your blog
  • One-press WordPress install
  • No contracts, remaining money back anytime if you don’t like it (I’m sure you will like it)

So now that we know we are going to go with Bluehost, what is next?

First, you should think of what you would like your domain name to be. This is very important because this is how people remember your blog and can tell their friends about it. A name like thisisjustanotherboringblog.com is probably not a good one. Think about what you want to write about and brainstorm names that are meaningful. It is worthwhile to spend the time upfront to decide on a good name. You can always change later, but it cost money to buy a new name and time to do additional configuration.

After you have decided on a name, head over to Bluehost and sign up for an account there. They have various levels of accounts with added services for increased costs.

  • Shared Hosting – This is a server environment for your website that is shared on a single operating system. This is suitable until you have high traffic.
  • VPS Hosting – Virtual Private Server Hosting – This gives you the ability to have your own operating system for your sever. You are given your own virtual server to use and have the ability to configure it to your needs. VPS Hosting is also good for very high traffic or high computing requirements for rendering your blog. You still share a physical server with other users, but you have your own operating system image.
  • Dedicated Hosting – This is the ultimate hosting solution, where Bluehost provides you with a dedicated server, which includes it’s own hardware. There are no other users on your server and it is dedicated for your use only. This provides the highest speeds and processing power for extremely high trafficked websites and blogs.

If you are using this tutorial to sign up, you should start with Shared Hosting. Bluehost offers the ability to scale with you and move your plan to VPS Hosting and Dedicated Hosting for you as your blog grows.

Setting up Bluehost Shared Hosting

To start, head over to Bluehost’s homepage and click “get started now”.

Next, you have a choice between the levels of service Bluehost will give to you. We have been very happy with basic plan so far. Because Bluehost allows us to upgrade as our needs grow, it makes sense to start out with the Basic Plan for 3 years and grow from there.

Now you get the chance to choose your domain name. Since you have already thought about your domain name choice, this should be a fast step. Chances are, your preferred domain name is already taken, so be prepared to keep trying different names until you find one you are happy with and that represents what you want to write about.

If you did not decide on a domain name and are pulling your hair out agonizing over this decision, you are in luck. There is an exit-intent pop-up that allows you to skip the domain name for now and move on to registration.

The final step to your Bluehost account is to input your financial details to allow payment for your new hosting environment. $2.95 per month is an awesome deal for hosting, but if you want even further savings, move your cursor off the website again to trigger the exit-intent pop-up and get a further $0.30 in savings and get Site Backup Pro for free.

You have the choice to purchase add-ons at this point and you can purchase what you feel you need. There are privacy add-ons to shield your personal details from the domain name servers and others. The Site Backup Pro for free is an awesome service if still available. It allows you to restore single files to your site without having to restore the entire file system. Inevitably, at some point you will need this service and it will be worth its weight in gold.

Congratulations, you now have a hosting environment!

I just bought Shared Hosting on Bluehost, now what do I do?

At this point, you need to install some software to allow you to run your blog or website. First, though, let’s explore what your new shared hosting really is.

Your shared hosting environment gives you the access to a virtual computer over the internet. You now have access to a computer that resides on the Bluehost servers. Inside the files on the destination computer are:

  • files for content
  • files for media
  • files and scripts to tell the web browser how to display things
  • a MySQL database to correlate them all together
  • an Email Server
  • and many, many more

With all of these files on a computer, you may wonder how it all comes together to be displayed logically for us mere mortals. Sure you can read the code that makes the internet work in theory, but the true beauty of the internet comes out from the graphical display of all of the information.

In order to correlate all of the information together you need a content management system or CMS. There are various content management systems out there to choose from, but the most common for blogging is WordPress.

The vast majority of blogs nowadays run on WordPress software. There are 2 versions of WordPress out there, so be wary when you just hear WordPress. WordPress.com is a one-stop hosting and CMS solution, but because WordPress, the company, owns your website, you never have true freedom of expression. It can also get very, very expensive, and since you are reading here at Atypical Life, I know you do not want expensive. We have already setup hosting with Bluehost, so now we need to get WordPress for our new server.

WordPress.org is the website for the wordpress content management system software. It gets installed on a Linux server/operating system, and gives you a user-friendly interface for editing and building your blog.

Installing WordPress

Bluehost offers Mojo Marketplace which has a one-click install of WordPress. This makes it almost too easy to get up and running on your new website.

Navigate to “one-click installs” on your Bluehost C-Panel and here you will find WordPress as the first option for installing. Click on WordPress and follow the prompts on through to successfully install WordPress on your website.

WordPress is the first on the list for one-click installs because it is the most popular website content management system.

Tips during the install:

  • Since this is a new install, you can overwrite anything that is there (if it’s not a new install make sure that your installation location is not going to overwrite anything important).
  • Choose your new domain name to install to. This will install to the file location /public_html/
  • Click show advanced options so you can input your preferred username and password. You should probably not use admin, admin.
  • Once installation is complete, your new wordpress website will be accessible from your domain name.
  • The WordPress admin panel is yourdomain.com/wp-admin, just add “/wp-admin” to the end of your domain name.

Congratulations, you now have a website.

Let the fun begin! Let me know in the comments about your new blog. I look forward to reading your new blog.

Remember, signing up for Bluehost and setting up WordPress is very easy and cheap at $2.95 per month or less, and is the beginning to a long and fulfilling journey of telling your story to the world.

Up next, How to Start a Blog: Intermediate where you will learn about themes, plugins, and widgets.

If you found this post useful, share it on Pinterest.

How to start a blog- easy