March 2017 Atypical Life Income Report

Welcome to the third 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 show from my income and expense reports:

  • 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.
  • 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
Bonus$6,020
Company Match$1,112
Expat Income$1,266
Gifts Received$50
Interest$4
Investment$725
Salary (Mr. Atypical)$6,467
Salary (Mrs. Atypical)$131
Total$15,775

March was another great 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.

I was stoked in March when our company actually paid the Short-term Incentive Plan (STIP) at 100% funding this year. This amounted to a 7.75% bonus on my new annual salary. All of the extra funds got saved and invested with 50% going directly to the 401k, ~25% going to taxes and the final 25% paid out to me and invested in the HSA.

One problem with the 401k contribution this month is that it still has not posted. I received my bonus on March 10, and the $3,010 that were “contributed” to the 401k, have still not shown up in my account. I was waiting for the salary contribution posted (around April 7) before approaching HR about this lack of contribution. I am not sure of the company’s intent here, but it seems they are holding on to my money for their own gain rather than paying it out to me on time.

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 ready us for an atypical life of freedom. The 401k matching contribution is free money and we make nearly $6,000 per year from this income source.

March is when all of my VTSAX investments pay out dividends, so we had a $725 dividend payment. The payment for this quarter was very low compared with past payments. Even though I have more investments than I did in December 2016, the dividend payout was down 25% on a per share basis.

Expenses

ExpensesAmount
Business$550
Fees$8
Food$448
Home$325
Insurance$74
Medical Expenses$70
Shopping$427
Taxes$2,730
Travel$890
Utilities$29
Total$5,551

Our March expenses were to be expected and slightly over budget! They were the highest of 2017 so far because of hosting my parents in China for a few weeks.

The bonus we received in January from the local Chinese government got put to further good use this month on a new lens for our Micro 4/3 camera. The Olympus E-M1 that we bought in February is complemented nicely now by a wide-angle Panasonic 7-14 mm f/4 lens. This lens gives us a new perspective to use and will continue to expand the possibilities of beautiful photography for our blogs. Along with that, we improved our blogs with new plugins, so keep an eye out for new formatting. Because the bonus was paid in RMB to a Chinese bank account, we were not able to invest it without the fees and hassle of a wire transfer, so we have decided to allocate it to business expansion.

Because my parents are here, our budget, in general, got overstretched. We are trying 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, visited the Great Wall. We are also getting more food out at restaurants as a result of them here. Introducing them to the local food is enjoyable, but certainly more expensive. It gives us a feel for what the cost will be to live when we have kids in the future.

In addition to the business expansion from the Chinese bonus, we treated my parents to covering the flight cost to Gansu and back. 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 March was $876, however, half of the non-flight cost will be paid back to us by my parents. because they do not have a free way to get RMB to spend, we are covering all costs and they will reimburse us at the end of the trip via PayPal. Keep an eye out for our upcoming post about our Gansu trip.

Shopping

The shopping budget was over this month at $427. The reason we were over budget again is due to my parent’s trip to China. Because we can’t buy some things in China (I wear a size 46 shoe 13US), we bought them from the US and had my parents bring them to us. This saw the purchase of a pair of Chaco sandals for me, a pair of cycling sandals to replace the ones that I broke last year, and 2 horse riding helmets for Mrs. Atypical. The last one was a mistake due to a website malfunction and we will get reimbursed for the helmet when it gets returned to the store.

Mrs. Atypical and I are very into exercise and use it to spend much of our free time. Since cycling here is not too fun and the air is not too clean (think a thick headache inducing smog 150+ PM2.5) she asked for a bike trainer so she could ride inside. There was no way I could say no to that, so we purchased one that I would ride as well, and she is well on her way to getting stronger because of this purchase. I did not buy the cheapest version of a trainer because tools should be bought to last, and good quality can make all the difference. In the pursuit of freedom, we cannot forget to live and enjoy ourselves.

Medical

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.

We had our first medical costs of 2017 this month with the purchase of 12 months worth of birth control. China has it right because birth control is over the counter. There is no way they could have maintained the one-child policy for years without easy access to birth control. In the US, the government has put up barriers to access which does not make any sense.

Home

Our home cost remained at $325 and will remain at exactly that level until we finish the contract up in China. Our internet was paid in full this month for the following year. For the service (fine during the day, slow as dirt at night), the price is reasonable at $255 for the year or $21 per month.

Food

Our grocery and dining budget ballooned this month from my parent’s visit to $427. With $335 spent on groceries for the month, it is evident that we were stockpiling ingredients for the month ahead. I purchased 10 lbs of butter in preparation of baking wonderful Western sweets. Since we get the butter delivered, I thought it was better to stockpile before it gets hot here to stop melting during delivery. I am always happy that the cost of food in China is so low beside our splurges for sanity’s sake on butter, sugar, and chocolate!

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.

My second month using this platform was much more successful than the first month. I did not make the same mistake as I did in February with incorrectly moving funds from HSA Bank to/from TD Ameritrade. I was able to put an additional $3,500 into the HSA bringing my total investment to $5,000 for 2017.

The investments made into the HSA will save us a good amount of taxes 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 49% of our expenses for March totaling $2,729.

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

Our taxes for March were extraordinarily high because of the tax withheld on the bonus. I initially thought it was way too high because they withheld 25% federal income tax from it, however it ended up correct. Because it is additional income above the estimated tax that I pay on my normal salary, it is taxed at my max tax rate of 25%. The 25% income tax was levied on the entire bonus, even though 50% of it went to the 401k in pre-tax contributions. Due to the expat package, I do not pay real income tax, but estimated income tax to the company, the accounting is done differently. The tax rate should probably be 15% since my saving plan for the year will put me in the 15% tax bracket but is not worth arguing.

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 that 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.

Savings

In total, we made $10,239 in March 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 freedom. 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 got to go on a wonderful trip to Gansu province to check out the scenery and mountains there. It is nice to know you are loved and that people will travel half way around the world to come and visit.

How was your March? 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!

March 2017 financial review

February 2017 Atypical Life Income Report

Welcome to the second monthly income and expense report from the Atypical Life family. We are pleased to share this with all of you, so that 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 show from my income and expense reports:

  • 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.
  • 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$750
Expat Income$1,266
Interest$4
Salary (Mr. Atypical)$6,467
Salary (Mrs. Atypical)$116
Total$8,619

February was another good 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.

We saw our annual inflation adjustment to the salary this month. This year was actually the largest inflation adjustment I have ever had at 2.16%. It usually is exactly 2%, so I was happy to see them round up the numbers to an even $77,600 annual salary. They missed the adjustment to our 20% hazard pay, but I expect that to be made up in March in the next paycheck.

My company has a fairly generous 401k match at 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 $6,330 goes to the 401k each month to ready us for an atypical life of freedom. 401k matching contributions is free money and we make nearly $6,000 per year from this income source.

Expenses

ExpensesAmount
Business$1,170
Fees$44
Food$216
Home$325
Insurance$74
Shopping$252
Taxes$1,065
Travel$393
Utilities$283
Total$3,822

Our February expenses were on track and on budget! They were higher than January, but that was expected because we had a couple of lumpy expenses.

The bonus we received in January from the local Chinese government got put to good use this month on a new Olympus E-M1 mirrorless camera and Olympus Pro 12-40 mm f/2.8 lens to help grow our blogging and photography businesses. Along with that, we improved our blogs with new plugins, so keep an eye out for new formatting. Because the bonus was paid in RMB to a Chinese bank account, we were not able to invest it without the fees and hassle of a wire transfer, so we have decided to allocate it to business expansion.

I managed to keep the shopping budget down to below $300 again this month, which was a huge success. Partly, this is accounting because we are counting the new camera as a business expense and not a shopping expense. However, we kept our expenses low by not purchasing frivolent goods. Our shopping consisted of a ~$100 gift to our personal driver as a thank you gift over the popular Chinese holiday, Chinese New Years. We also had the expense of repairing our other Olympus camera because the shutter locked shut in Indonesia. These 2 expenses combined to be $200 out of the total $250 for the month. After nearly 5 years of spending upwards of $600 per month on “things”, I am extremely happy to be able to so quickly reduce this amount. It may be because we have finally acquired most of the things we need, or that I am finally pursuing freedom with the attention it deserves.

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 super charged investment vehicle, the HSA.

Our home cost remained at $325 and will remain at exactly that level until we finish the contract up in China. Our internet was paid in full this month for the following year. For the service (fine during the day, slow as dirt at night), the price is reasonable at $255 for the year or $21 per month.

Our grocery and dining budget was pretty low for the month at only $210. We were traveling for 5 days out of this month, so those food expenses are included in Travel expenses. Comparing our extrapolated January spending of $183 to the extrapolated value for February of $256, we see higher expenses, but we were not trying to run out before vacation either. I am always happy that the cost of food in China is so low besides our splurges for sanity’s sake on butter, sugar, and chocolate!

The HSA Experiment

Our HSA, which has finally been successfully moved from MyBenefitWallet to 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 move it to TD Ameritrade and buy VTI, the best possible investment vehicle.

During my first month using this platform, I made a mistake. I was not vigilant while transferring funds between the HSA and Investment account and accidentally withdrew $2,000 from the investment account leaving me a ($1,700) deficit in the account. When I got the email about a cash balance debit error, I was especially confused. I had never heard this term before, but after review on the HSA Bank website, I figured out what happened and promptly replaced and added more funds to TD Ameritrade.

My first foray into investing on TD Ameritrade was successful, but I am a huge fan of mutual funds. I much prefer them over ETFs because you can just add however much money you want, not having to buy whole shares at a time. The TD Ameritrade platform is very busy and seems to be optimized for day-traders and those few that spend tons of time trading stocks. For those of us that are pursuing freedom, we must remember:

Keep it simple, stupid. KISS

Taxes

Everybody hates taxes. They eat away at our income and we never even get a chance to see it. Taxes were 28% of our expenses for January.

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 that 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.

Savings

In total, we made $4,621 in February 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 freedom. 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

We enjoyed Indonesia and hanging out with friends in China. Indonesia was an amazing break from work and recharged my batteries both mentally and physically.

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

If you enjoyed this post, please share it on Pinterest!

financial review February 2017 Atypical Life

Why I Decided to Share Our Finances

Sharing your finances, your income, your expenses, and your lifestyle with the world is seen as taboo. We all grow up hearing that it is unacceptable to ask how much money someone makes. But if we all started to share our income and expenses with each other, I believe we can liberate ourselves and help each other grow towards the atypical life of freedom.

When I shared Atypical Life with my parents, the first comment was:

Do you really want to share all of this information online? What about your family? Who is your target audience? ~Pops

I appreciate my dad’s input and understand where he is coming from. In his generation, it was seemingly unacceptable to share one’s income, even with their own family. I never learned how much money my own dad made until he was retired. I will not share it here, since sharing income is a very personal decision.

I hope to answer his concerns below.

Do you really want to share all of this information online?

scary man
What the media wants us to think all people are like.

Of course I want to share my finances online. The world is full of people that are scared by the media. The media does their best to make the world seem like a scary and unsafe place to live. The internet is only full of trolls and those trying to steal your personal information, right?

I am an optimist and do not believe all of the scare mongering that the media likes to put out. People are good at heart. I have no qualms about sharing my finances online. I have an engineering degree from a renowned university and make a reasonable salary for that degree. I have taken the chances that have been afforded to me and have been rewarded for taking those chances. Why is this something to hide?

If we all were to share our finances online, then we would be able to better compare how we are doing against the rest of society. Is the job we are doing underpaid in comparison or are we living the good life with a good company paying above average wages? This question and many more could be answered if we had access to the information that I want to provide to all of you.

The human resources department of every large company does market research to determine wage levels and set pay grades. This allows them to make sure they do not “pay you too much”. It goes to show, the information is out there and shared anonymously between companies, but is not available for the public, to do their own fact checking.

glassdoorGlassdoor is a company that allows you to share your income and job titles anonymously. This website is a great way to post your income levels for all to see, if you don’t want people to know your identity. You can contribute to the benefit of all by sharing your income and job, so we all can do comparisons across industry and the economy. It is also a good way to research prospective companies since you can leave reviews on the company culture and other information that is not easily available online.

Why I Share my Atypical Finances

I want to share my financial information to help people. Living the atypical life is great, but being able to help others achieve the atypical life is truly exciting! Through this blog, detailing my finances and tips on how to live the atypical life of freedom, I hope to inspire more to pursue freedom on their own terms. I will share my income while I am employed by my company along with the other benefits of employment.

The second part to sharing my finances is sharing my expenses. There are 2 reasons I want to share my expenses:

  1. to help my readers see that low expenses really are possible.
  2. to help keep me accountable and lower my expenses further.

mr money mustacheMr. Money Mustache was the first financial independence retire early (FIRE) blog I came across and he inspired me to pursue the atypical life of freedom. One of the main takeaways is that the lower your expenses, the less money needs to be saved for early retirement, and the more money you can save each month. These 2 effects compound together to bring freedom super quickly. By sharing my expenses with my readers and the world, I hope to inspire you to reduce your expenses as I reduce mine in the pursuit of freedom.

As seen from my 2017 goals, I hope to lower my monthly expenses by $300 per month on miscellaneous expenditures. By blogging about my monthly income and expenses I hope to control my own habits, so that we can live the atypical life of freedom from the man sooner.

By sharing my investment strategy and investment contributions, I hope to educate you about investing. Investing is always shrouded with mystery and portrayed as something best left to the experts. I hope to share my own journey through investing and show the endpoint that is super simple. I will be sharing all of the information that I wish I knew, when I started out on this journey 7 years ago. By sharing this information, I hope to shorten the length of time to investment enlightenment for all to follow.

Identity Theft Concerns

I am not concerned about identity theft. Atypical Life is anonymous (obviously my name is not Atypical), and will certainly stay that way until at least I leave the workforce. Sharing my income, expenses, and investments is just sharing values. In order for identity theft to happen, a thief would also need account numbers and lots of my personal information that is not available. Because of this, I am not concerned.

Atypical Life Target Audience

I will answer my dad’s final 2 concerns here. My target audience is all of my readers and the public that wants to know about freedom.

I hope to help people through my openness about finances and share with others our story about how we achieve freedom.

I would love to share Atypical Life with my family, however, there is the concern that they may be jealous because of the income level I am at after only working for a few years out of college. I understand the concern here, and will likely share this only with my family that I think would enjoy the read and learn something along the way. There really is no reason to be jealous of my income because it was all earned and deserved. Because of my engineering degree, my starting salary out of college is significantly above the average college graduate, but actually low to median for engineering salaries. This coupled with my acceptance of an expat assignment in China has allowed us to pursue an atypical life.

In Conclusion

Yes, I will share my finances here on Atypical Life. Sharing of our finances both income and expenses, I hope to inspire my readers to reduce their expenses, increase their income, and achieve the atypical life of freedom sooner. Sharing your finances online and in general is a deeply personal decision, and I believe the benefits to ourselves and society greatly outweigh the risks.

Thanks Pops for sharing your concerns and helping me to realize that freedom is paramount. blog post text

Do you have a blog? Do you share your finances online as well? Why or why not? Let me know in the comments.

If you enjoyed this post, please share it on Pinterest!

finances, sharing, income, expense, savings

2 Weeks in Paradise: Cost Review of Indonesia

One of the benefits of living abroad as an expat in China is the Chinese New Year’s holiday. We were able to spend 2 weeks off on a wonderful vacation bike tour in Indonesia because of a week long holiday mandated by the Chinese government. I spent one week of my vacation and we were able to travel for 2 weeks. Chinese New Years (CNY) goes along with the lunar calendar and is the annual lunar new year. It is between mid-January to the end of February each year and lasts at least a week of festivities for the Chinese. It is also the largest human migration annually in the world, as lots of Chinese head to their home towns to visit family and celebrate another new year.

We took our chance to escape the chaos of China and the huge migration by leaving before the new year stared and returning after the government mandated holiday. This allowed us to miss some of the crowds.

How did we decide to travel to Indonesia?

We were planning a trip to Thailand to go visit Chiang Mai and the elephant sanctuary that is located there. However, when I learned from my Chinese co-workers that Thailand is a major travel destination for the Chinese, we changed our plans and set our sights on Indonesia.

Who knew, when we started planning this trip, that Indonesia is the 4th largest country in the world behind:

  1. China                     (1,376,830,000 people)
  2. India                      (1,289,690,000 people)
  3. United States       (323,675,000 people)
  4. Indonesia             (258,705,000 people)

The vast majority of the inhabitants of Indonesia’s 17,508 islands live on Java, the main island, and our destination for our 2 week adventure.

 Bike Touring to Save Cost

We brought our coupled tandem road bike with us. This was our main form of transportation once we arrived to Indonesia. We used it to tour various sites around Yogyakarta and also used it to travel across Indonesia and eventually end up in Bandung at the end of the trip where we took a bus back to the Jakarta airport.

Bringing your own transportation on a trip really frees you up to explore on your own terms.

  • It is free, since it takes no fuel.
  • It also allows you to see the countryside and stop at any location you want.
  • You get to interact with locals instead of blowing by them.
  • It is a great conversation starter.

Like the view on the side of the road where it says no stopping? Go ahead and stop and take a picture of the scenery before you continue on your way.

Mt Merapi

There are certainly downsides to bike touring:

  • It takes longer to get places than on motorcycles or buses.
  • If you are tired, the last thing you want to do is ride your bike 50 km one way to go see a sight outside of the city you are staying in.
  • While having a “real job” and a set vacation time, you “waste” valuable days riding from one place to another.

The negatives are outweighed by the positives of freedom and choice. We get to explore on our own terms.

We were able to save hundreds of dollars on bus and motorcycle rental fees by bringing our bike and traveling the way we did. One destination, Sri Gethuk, a beautiful waterfall outside Yogyakarata, certainly had no buses going to it. The only way to get there is by motorcycle or bicycle, and we were able to go on our own schedule and get to experience it.

Sri Gethuk

Bike Touring Across Java

We started our trip in Indonesia with 4 days in Yogyakarta. While here we got to explore a number of very cool sites. The first was a small waterfall that is reminiscent of the Antelope slot canyons in Arizona called Luweng Sampang. Riding there was a brute of a bike ride with a 20% climb that was over 2km long. After getting there, the riding was all flat, so the day was relaxing besides the beginning. We were able to jump off the waterfall into the canyon below, only after watching some of the locals do it. After refreshing in the water, we headed to Prambanan to see the Hindu temple complex. There were actually multiple temple complexes at the site we got to see.

We also spent a day riding over to Sri Gethuk to visit the waterfalls and the cave. This was another 40 km ride there and 40 km ride back over steep difficult terrain. The waterfall was definitely worth it, since I got to swim and enjoy the water for an hour. The last day in Yogyakarta was spent eating pizza, relaxing and then checking out some more local temples. We had big plans for seeing other places, but our fatigue held us back. That is the one downside to travel by bike. When you get tired, you really do not want to go anywhere but to eat.

Borobudur

Leaving Yogyakarta we headed up to Borobudur on the bike and explored for the day. Borobudur was a very cool and unique Buddhist temple. Another benefit of the bike is there are no parking fees, usually. Borobudur was one of the tourist traps that we went to see in Indonesia. It is renowned as the world’s largest Buddhist temple, which we can attest to is 100% misleading if not completely disingenuous. Many of the Buddhist temple complexes in China put the size of Borobudur to shame, however, it was a very cool place nonetheless.

Borobudur

Dieng Plateau

After a day at Borobudur, we continued on to Dieng Plateau, where there is lots of volcanic activity. The ride to Dieng was extremely difficult. We found out in Yogyakarta, that the hills and mountainsides in Indonesia are dangerously steep. After reviewing the route, we thought it would be okay on the way to Dieng. We were wrong. The hills were still super steep and we were super tired by the time we reached the bottom of the 1000m climb up to Dieng. We rode around until we were able to find the bus up the mountain and loaded up our bike on the bus rooftop, in order to reach Dieng. We prefer to ride, but when the time comes to call it quits, we have started to accept it.

We found a little homestay in Dieng upon arrival that happened to be our cheapest accommodation of the entire trip. It ran us 75,000 IDR which is equivalent to $5.62, quite the steal. Granted this certainly wasn’t a luxury accommodation, but it served our needs of a roof over our head and a bed to sleep in. Exploring the plateau, we saw a beautiful green volcanic lake, multiple temples, and a very cool volcanic crater that reminded me of the small ones at Yellowstone in the US. All of these locations charged to go see, them and I felt like I was getting nickel and dimed to death. In the end, their charges were equivalent to $1 or less for most of the locations, so it wasn’t very expensive.

Dieng Lake

Enjoying Pangandaran

Leaving Dieng Plateau, we spent 2 days riding across the country to Pangandaran, so we could live in the lap of luxury at $13 per night for a secluded beach inn. Our ride across the country started with more of the steep craziness, but we were able to make it to Purwokerto in one day, where we couldn’t find a place to stay except for 450,000 IDR ($36). We felt ripped off here, but it was a very nice place and we were able to dry out our clothes after being soaked for a couple of days from rain.

We also hit up the local bike shop for parts and repair. I can fix all my own gear, however, when parts break, there is no other option. My front derailleur cage broke and we needed a new one. At the shop, I was able to get a new one and get it installed along with adjustment of the disc brakes. The bike was not responding well to Indonesia and needed these parts to feel safe riding in the mountains.

Riding from Purwokerto to Pangandaran was a very nice ride besides the one crazy mountain (not steep) where the drivers were all over the road and seemed intent on running us over. We got rained on for several hours, but it was still a beautiful ride. We arrived to our beach paradise, and decided in the end to stay here for 3 nights. Given no schedule we would have stayed longer, but we still wanted to make it to Bandung at least.

We had a very nice day on the river with a guide company taking us up and floating down the Green Canyon. This included jumping off 15m high cliffs along with floating through rapids. It was a beautiful experience and one of a number of experiences that are budget friendly in Southeast Asia. I prefer no-cost fun on the bike, but trips for adventure excursions are still very fun.

The next day we spent a day lounging around on the beach and exploring the mangrove forest. It was very nice to just hang out and relax after several long days of bike riding. The fatigue we built up so far on the trip was starting to get to us. I got to spend my birthday lounging on the beach enjoying the clean air, beautiful water, and quiet surroundings.

Pangandaran Beach

Riding and Exploring Bandung

We were sad to leave Pangandaran, but the roads were calling and we were rested. The ride from Pangandaran to Tasikmalaya took us along back country roads that should have been very nice pavement had they not all been washed out from the heavy rains. We managed to stay upright the entire time, but the roads were doing their best to throw us off. We climbed up several mountains under the beating sun to reach Tasikmalaya. We feasted on roadside fried goodness on our way and made it to town after 94 km and running out of water.

The next day was our last ride of the trip. It was an okay ride to Bandung. We were on the “major” highway, highway 3. It was only a 2 lane road and was not supposed to be steep, but the 2 mountain passes we went over certainly qualified as steep (10-15%). It would have been a lot nicer of a ride, but the clouds were up and visibility was low. Also, the final push to Bandung was through unending suburban sprawl, which is no fun to ride through. In the end, we made it to our hotel in Bandung and set about figuring out an activity for the next day.

We found a volcano to go hike up, Tangkuban Parahu. It is the most popular volcano in Bandung, and is a terrible ripoff for foreigners. It cost less than $2 for locals, but the cost for foreigners is 10x the local cost! We still trekked up there on buses and by foot, refusing the many offers of additional transportation. The crater at the top was very cool and the views from the top were second to none. In the end, I felt stabbed through the heart at the time for 10x local cost, but we spent a total of $144 on entrance fees and attractions for 2 weeks, which is not too bad at all.

Tangkuban Parahu Crater

Our last day in Indonesia involved riding our bike to the bus station, packing it all up and then taking the bus back to the airport to fly out the following morning.

Cost Review of 2 Weeks in Indonesia

[one_half][wpdatatable id=9 table_view=regular][/one_half]
[one_half_last][wpdatachart id=6][/one_half_last]

Transportation Costs

We flew in and out of Jakarta on our adventure to Indonesia. Because of CNY, flights are usually astronomically priced during those weeks, so we had our first foray into travel hacking and flying on rewards points. During our investigation into living in China we were flown over to China by the company multiple times and we were able to rack up 56,000 rewards miles on Cathay Pacific. Nearly enough points to fly both of us round trip to Indonesia. The tickets for this trip were supposed to cost $400 each, but by using rewards points the cost was $90 in fees. We also had to purchase points, which is a major rip-off at $60 per 2000 miles, for a total round trip cost for 2 people to Jakarta, Indonesia from China of $210. I did not see us using the Cathay Pacific points anytime soon and they were set to expire as well, so purchasing points to travel made sense in our situation and it worked out for the best.

Along with the round trip flight to Jakarta we also were scammed into a higher cost in-country flight from Jakarta to Yogyakarta (Jogjakarta locally). When I went to book the $35 flight in Indonesia, it would not accept any foreign credit card. I had to book via a travel agency raising the cost to $50 per ticket. This is one of the drawbacks to traveling on a schedule set by work. If we had time and freedom, we would have just arrived to Jakarta and then booked the ticket to Yogyakarta.

Our trip worked out to be more expensive than I expected, but very cheap in terms of time-limited vacations. 40% of our cost was transportation, and of that 40%, 92% ($467) was just to get to there and back. This goes to show, that the longer the trip is, the cheaper it is per day. Our trip was 40% transportation cost, almost entirely spent on getting there and getting home, so if we had doubled the trip length, transportation cost would drop to 20-30% of trip cost depending on increases of food, housing, and activities.

Housing Cost

We paid on average $20 per night for accommodation for a total trip cost of $297. $20 is the upper limit of what I like to spend per night on accommodation in locales in Southeast Asia and it affords pretty nice hotels. We got ripped off a couple of times because we were staying in a tourist trap and because we didn’t book ahead. We learned to book at least a day ahead using Agoda to secure the cheapest cost and to find the lowest cost hotels in a city/town. Our favorite stay in Pangandaran in a small house by the beach, with included breakfast and the sound of geckos all night was $15 per night.

Food Cost

Food in Indonesia left something to be desired. Everything was fried, which is pretty good when you start, but after awhile gets old. One thing I will never get tired of though, is a dinner cost for 2 of $2.25. No the food is not exquisite, but it is not bad either. Indonesia does spicy right. Just one dab of their hot sauce is burn your face off spicy.

Want a fried hush puppy? Here is a handful of fresh chilies to go with it!

We had an “expensive” seafood dinner one night for Mrs. Atypical with tiger prawns and fresh fish for a total cost of $18. In the end everything was very cheap in Indonesia. Even though the meals were usually not enough to fill us up, we could stop at a convenient store for snack foods and still be way ahead on cost, even compared to China.

Activity Cost

Activity cost in Indonesia is outrageous when compared with the local prices. As a foreigner, you can expect to pay 3-10x the local price to go see any and all attractions. They believe because we are foreigners, we have lots of money to spend and they all want a part of it. Our big ticket items here were Borobudur temple complex ($39 for 2), Prambanan temple complex ($35 for 2), and Tangkuban Parahu volcano ($30 for 2). The one high ticket activity we paid for, that I thought was worth it was the Green Canyon float trip with lunch ($34 for 2). All the other locations we visited were just nickel and diming us, instead of outright scamming us.

Souvenirs/Goods Cost

We like to bring back something to remember each country we travel to. Since we are on the bike, these items must be small and not break easily or we will never get to enjoy them at home. We were able to pick up 3 pieces of Batik art for ourselves and our family in Yogyakarta. The first one, we paid the same as the next 2, and they were all the same size! This goes to show, that the sellers are really just out there to scam us as best they can. The quality on all of them were the same and they were beautifully made and colored. The total cost for these was $60 and the rest of our goods cost was in fixing the bike and attempting to fix our broken camera. Our wonderful Olympus E-M10 camera had its shutter freeze shut at Borobudur, so we went more than half of the trip without our nice camera.

In Conclusion

We had a fantastic and relaxing trip to Indonesia. Living in the high stress environment of full-time employment working for the man, coupled with living in a city when you are country-folk, leads to a desire to escape. Indonesia filled that desire and then some. We were able to relax and enjoy ourselves for 2 weeks all on a reasonable budget.

We spent a total of $1,264 over the course of 2 weeks on this trip, which worked out to $74 per day. This is a sustainable forever travel budget, and I still feel it was on the expensive side with transportation cost so high. In the future when the Atypical Life family reaches personal and then financial freedom, we will be able to explore the world on our own terms at our own speed.

Have you been to Indonesia? Let me know about your trip and costs and we can learn from each other.

If you enjoyed this post, please share it on Pinterest!

Indonesia, Java, Borobudur, cost review, finance, budget

January 2017 Atypical Life Income Report

Welcome to the first monthly financial review 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 financial review will look very different to most family budgets, however, it is 100% real and is achievable under the right circumstances. So let’s begin.

I share my finances to inspire others to reach for freedom earlier. I hope to show from my income and expense reports:

  • 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.
  • 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

January was a good 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.

IncomeAmount
Bonus$5,196.00
Company Match$569.70
Expat Income$1,266.00
Gifts Received$100.00
Interest Income$4.93
Misc. Income$170.94
Salary$6,330.00
Total Income$13,637.57

Bonus Windfall!!

We finally had our windfall of a bonus that we have been expecting since July last year. This bonus was paid by the local government here in China as a talent award to individuals working in the area that applied for it. We had to put a lot of effort into the acquisition of this award, but $5,196 is worth the effort when it can bring us closer to freedom. The money was all deposited into a Chinese bank account, so we cannot pull it out for investing. The question now is how to treat this bonus? I think we will use it to double down on our pursuit of freedom with investment into blogging and self-employment.

My company has a fairly generous 401k match at 9%, as long as we contribute 6% to the 401k. This goal is very easy for us to achieve since 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. 50% of $6,330 goes to the 401k each month to ready us for a truly atypical life of freedom. 401k matching contributions is free money and we make nearly $6,000 per year from this income source.

The company I work for also has a health promotion program to help them bring down healthcare costs. This program works on points from pedometers and other health monitoring inputs to give us a maximum earning potential of $1,000 per year for the 2 of us. We both wear Garmin watches to track our steps, sleep, and exercise. I use it also to track some of my bike rides that then get uploaded to the company tracking website for bonus points towards our award. All of this is to say, I withdrew $140 from the program in January.

Expenses

Our January expenses were on track and on budget!

ExpensesAmount
Fees$2.50
Food$117.54
Home$325.00
Insurance$73.91
Shopping$288.36
Taxes$1,065.46
Travel$839.86
Total$2,712.63

I managed to keep the shopping budget down to below $300 this month, which was a huge success. January is my birthday, so we usually blow by that amount on birthday presents which we need to cut back on. This January I got birthday presents of long lusted after tools for bike repair. For those of you that are into bikes, I got a Taiwanese equivalent of the Park Tool TS-1.1 truing stand for wheel building and I also got a nice torque wrench and bits for bike repair. I also got several other cycling tools to fill out my bike shop worth of tools.

Clothes shopping this month were for Mrs. Atypical. Our vacation that started in January and went on into February was a bike touring trip to Indonesia and she needed some new cycling clothes for comfort on the long days in the saddle. There will be a separate post about our wonderful and relaxing trip to Indonesia. Needless to say, we spent a total of $780 there during January and the rest of the trip cost rolled over into February.

I do accrual accounting for our personal finances. Basically, this means, that if I paid for flights to Indonesia in December, they show up as expenses when they are actually used. So half of the expense of flights to Indonesia are in January and the other half are in February. This type of accounting is typically done in large businesses where it is required by law and not by individuals, however, I feel it makes the most amount of sense. We should account for things when they happen, not when they are charged to the credit card.

Our insurance for the month is also 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 for all of 2017. This covers us for all medical expenses in China and also qualifies us to use the supercharged investment vehicle, the HSA.

Our home cost remained at $325 and will remain at exactly that level until we finish the contract up in China. I was able to negotiate a housing cost into our contract of $325 because that is what my rent had been since I started working for my company out of college. The expat contract tries to keep your expenses the same as when you were living in the USA, so if I had owned a house in the US, I would not have to pay the company rent on my apartment in China. I cannot complain about rent of $325 to live in an over-priced ritzy-glitzy $1,000,000 high-rise apartment. It also includes all utilities besides phone and internet.

Our HSA, which has finally been successfully moved from MyBenefitWallet to 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 investment fee on that account, so we can move it to TD Ameritrade and buy VTI, the best possible investment vehicle.

Our grocery and dining budget was pretty low for the month at only $118. This has to be taken with a grain of salt, though, because we were traveling for 12 days out of that month. So an extrapolated spending would be $183, which is still amazing. We received lots of Christmas gifts in January, since our mail forwarding service is very slow to arrive to China, and in them we received all of the candy we could dream of! Sweets are definitely one of the top missed items living abroad in China.

Taxes

Everybody hates taxes. They eat away at our income and we never even get a chance to see it. Taxes were 40% of our expenses for January.

TaxesAmount
Federal$350.00
Medicare$102.44
Social Security$438.02
State$175.00
Total$1,065.46

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 that I would save into pre-tax investment vehicles:

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

  • $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 to around $20,000. 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 financial and personal 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.

Profit

In total, we made $10,953 in January 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 freedom. 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

We enjoyed Indonesia and hanging out with friends in China. Indonesia was an amazing break from work and recharged my batteries both mentally and physically.

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

If you enjoyed this post or found it useful, please share it on Pinterest!

The Power of Tracking – Track and Improve with Ease

How do we know we have reached financial independence?
How much money do we have?
How much money did we spend widgets this month?
Where did all of our money go?
Why do we live paycheck to paycheck?
Why can’t I lose weight?
How much do I actually go to the gym?
etc. etc. etc.
All of these questions and many, many more can be answered by tracking. Just the act of tracking  will make you more aware of your habits, and you habits will invariably improve without any effort beyond tracking.

Disclamer: I am an engineer by training

As an engineer, I enjoy tracking many different parameters which I later analyze. Just to list what I track:

  • Cycling: miles, speed, cadence, heart rate, power output, etc.
  • Health: pedometer (for work), sleep, illnesses, immunizations, doctor’s visits
  • Finances: All expenses and income, investment growth, estimated time to financial independence
  • Work: hours spent at work, excess days at work
  • Values of bikes and cameras, and when they were purchased
  • Lists of items wanted (wish list)
  • Destinations traveled to and ones remaining unseen
  • etc.

This above list does not include the numerous metrics I am required to track for work, since that list is not one anyone reading here (possibly while at work) cares much about.

What gets measured gets improved.  ~Peter Drucker

Peter hit the nail  squarely on the head with the above quote. What gets measured, gets improved with no effort, just from the exercise of measurement. From measuring, you become explicitly aware of effort applied and become more active in passive activities.

Tracking finances is a fine pursuit and one that can bring about financial independence much more quickly than without tracking. It truly is amazing to see how much money can be spent in a given time period and what all of this money is spent on.
This does not mean it is not possible to reach financial independence without tracking. My parents are a good example of this. Because they never connected their bank accounts to the internet, it is more difficult to passively track your finances. They never needed to track their finances, since they were by nature frugal people. Tracking brings frugality to the masses.

My financial tracking experience 

I started tracking my finances after finishing up college before starting my first real job. By tracking I was able to see where all my expenses were going to, though I could not control many of them, as I had to buy appliances and essentials for the house I was moving into after college. Even though these expenses were required, I was able to minimize them because I was tracking and spread them out over time instead of racking them all up at once on a credit card that would then charge outrageous interest rates. My eyes were opened from the beginning to the expenses of the “real world”.
I have been proud of saying that I managed my finances down to the razors edge. I was out of cash and had $13 in my bank accounts when I started work and my first pay check came. Looking back, I am no longer proud of that achievement, but see it as money wasted on frivolous consumerism leading up to working life. At this point, I start to save more money and dig out from the debt accumulated by going to college out-of-state. By tracking finances closely, I was able to pay off $30,000 of student loans in 2 years and another $20,000 of student loans from my wife, in an additional year. Tracking my finances enabled me to make the decisions to move money to the right places at the right times and pursue a life of freedom.

Tracking for the masses

For the vast majority of us, before we started tracking finances, we were following the typical life, just keeping up with the Jones’s. Tracking and measurement can make an atypical life achievable for more of the population. It allows the rest of us, who are not pre-wired for frugal living and non-commercial tendencies, to view the game that is playing out. To be able to see where money comes from and goes, all in one place gives us the power to change.
Once we start to track and the changes start as a result, then we can see the benefit of tracking. This then compounds, when we start to make conscious changes in our habits to reduce spending further.  This snowball effect can put us on the quick path to financial freedom and independence.
I think all would agree that to not have to worry about money is extremely liberating. Those with the highest net worth’s never have to worry since their money will not run out in their lifetimes, but for the rest of us, worrying about money seems, unfortunately so, natural. Tracking our money can liberate us from the uncertainty, since we do not have to wonder how much is spent when and if our balances are enough to support spending. Through tracking, we now know definitively, either yes we have enough, or no we do not.

Where to track

 There are many places to track your finances, and in future posts, I will highlight these. I have used many platforms over the years and they all have their pros and cons, with no one platform being right for everyone. Check out these platforms:
  • Personal Capital (personal favorite online and mobile platform)
  • Mint by Intuit (another very good online platform)
  • Credit Karma (continues to add functionality to be an all in one financial tracker)
  • Gnucash (open-source software for true double-entry accounting)

Final Thoughts

No amount of tracking, can force us to make the right decisions financially if we are too caught up in the consumerist mindset. However, tracking can put us on the path towards financial independence if we are willing. Let the power of tracking free you from the bindings of financial dependence.

If you enjoyed this post, please share it on Pinterest!

tracking, measuring, finances, budgets, expenses, income

 

2017 New Year’s Resolutions

With 2016 behind us, it is time to look forward to a bright and sunny 2017. It may sound cliche to write about and discuss new year’s resolutions because that instills more of a sense of short term change. My wife put it best when she said, “don’t call them new year’s resolutions, but new year’s goals.” A goal is a more tangible, achievable idea than a resolution. Many people resolve to do something, lose weight is the most common for us in the US, however, that resolve falters as soon as they see what it takes to accomplish that. Having a goal in mind and pursuing that goal gives you a more tangible way to measure progress.

So on with my goals for 2017:

1. Start a financial independence retirement early blog.

Well, as you see, I have accomplished this goal, right? This first one is more of a resolution. In order to put it into a tangible goal form that can be achieved, I would restate it as a goal statement. By the end of 2017, I will have written at least 52 blog posts, or one post per week. I plan to write monthly expense summaries, informational posts on personal finance, taxes, and savings/investing, and analysis of quotes I hear with a new perspective from atypical life.

2. Lower my shopping budget from $600 / month to $400 / month with a goal amount of $300 / month or less.

Ever since I graduated from college 4.5 years ago I spend approximately $600 every month on acquisition of things. Many of these things seem like necessities, but I know they truly are not. They are surely nice to have and I have amassed quite a collection of bikes, parts, tools, cameras, camping gear, touring gear and many other things. However, I am ready to put more effort into the pursuit of financial independence and I hope my readers can help me along the way as I will post monthly expense reports and break it all down. I planned on cutting the budget in half this year, down to $300 / month, but my wife convinced me to keep it a little higher to give a more realistic waning off of spending.

3. Ride at least 10,000 miles, and average 200 miles per week on my bikes.

I have ridden road bikes since I started high school and it is very much a part of who I am. In the past, I have ridden up to 18,000 miles in one year, but that was in college while I was single. Now that I am in the “real world”, the working world, and am married this ideal is no longer feasible. My long commute to work of 27 miles makes it easy to rack up the miles by riding to and from work, even though the ride is uninteresting. This year I plan to continue to ride to work on a regular basis and enjoy long rides on the weekend with my wife on our titanium tandem. This bike was certainly not a budget conscious decision, however, it is a dream ride and was a very good deal, as well as being a “forever” bike. I will discuss in future posts about thrift and good deal hunting.

4. Build and ride a bamboo bike

I love to ride bikes. I have had quite a few different bikes over the years, optimized for different purposes. This year I plan to join together my passion for bikes with my enjoyment of building things, to bring to fruition the bamboo bike frame. I built a bike jig last year to hold the frame together in alignment before gluing and wrapping, but did not get around to completion of the project. The goal this year is to completely build and ride at least the prototype fixed gear bamboo bike. The stretch goal would be to complete the prototype, analyze the needs for improvement, and then build a second one of higher quality. After building these 2, I have dreams of building bikes for family and a tandem for my wife and I out of bamboo, but I will be happy this year with completion of one bike.

5. Race on the road bike at least 10 times in 2017.

I have raced road bikes now for 10 years. I improved greatly while I was in college, to the point that I raced for a elite level team for 3 seasons. However, after college was over and I started working, my race load dwindled as workload increased. It continued to dwindle to a minimum 2 years ago in 2015 when I raced only 3 times in the entire year. Granted moving around the world to live in China, has its limitation when it comes to racing. Now, after 2 years living abroad, I have established a community of cyclists that I race with, and can now pursue racing around China more often. My goal for the year is to race at least 10 times. These can be individual races, or a large week long stage race where each stage counts as a race. At my peak in college, I raced more than 50 times per year, and the past 2 years have been averaging about 10% of that. Hopefully, I can continue to build my strength back up and be competitive racing racing around China.

6. Continue to travel to more interesting places around the globe.

As you may have found out above, I currently live in the wonderfully different world of China. I have lived here for 2 years and the contract I am currently working under lasts 2 more years, so an atypical life of freedom cannot start until this contract is up. However, the original purpose of moving to China was to be free from the bounds of the US. The US, in general, is prohibitively far away from the rest of the world making international travel more expensive. Living in China gives us the chance to travel around SE Asia and most of the world while being based closer to it, therefore making the travel cheaper and more efficient. I do not have the luxury yet of slow travel. Only a life of freedom can really allow that, however, I hope to travel to multiple destinations in China this year for racing and vacation, as well as some international travel within SE Asia and Europe. This one can only be stated as a resolution, since we have not planned all destinations for the year, but have hopes to go globetrotting while work allows.

My goals for the year are all attainable and reasonable. I hope to follow through on all of them, and I will let everyone know here on Atypical Life, the progress I am making as the year proceeds.

I wish everyone a happy new year and look forward to hearing about your new year resolutions.

If you enjoyed this post, please share it on Pinterest!

2017 goals, resolutions

Company Loyalty and Financial Independence

Quote of the Week:

You can never, ever forget — people may be loyal to companies but companies are loyal only to the bottom line.

This quote is from a response on Quora to a question posed about the cutthroat company culture of Cisco Systems. The response is by Jay and is linked here.

Loyalty means a strong feeling of support or allegiance to an organization, cause, government, etc. Loyalty is a mutual matter and should be reciprocated. When a person is loyal to another entity, be it another person or organization, it is generally accepted that the recipient of the loyalty will show loyalty back. This is how most bonds of trust are born and why society in the world works. Most people will show loyalty to their respective governments and show nationalistic pride because they feel that the loyalty will be reciprocated. The government has their best interests in mind and works to provide value to the loyal citizens for their taxes. This may not always be true, as can be seen from the news with the uproar that happens after any new decision for or against change. There will always be an unhappy party, but by and large, the majority will be content with the knowledge that the government is working in their best interests and is being loyal to the citizens its governs.

Now, a public company on the other hand, is beholden to the shareholders. I have worked only for publicly traded companies, so can only speak to them. Every move a company makes is towards the benefit of the shareholders. We, the employees, work for them tirelessly, or tiredly, and put in lots of prime time hours for the benefit of the company. The company, in return, pays us a salary and some number of benefits. However, as time progresses, this benefit package seems to get chipped away at, so the company can make larger and larger profits. The “bottom line” is the end goal of the company. Make the largest profit possible without losing too many of their valuable employees. When a company becomes publicly traded, their loyalty moves from inside to outside. Their loyalty now lies primarily to the shareholders and the shareholders show their loyalty back to the company in the form of buying and owning stock in the company. In a private company, the company can be more loyal to their employees, as their employees are the ones that generate the revenue and drive the profits for the company to be successful, but once a company becomes publicly traded, loyalties change.

So why do we have employees that are loyal to publicly traded companies? The company is not in return loyal to us. I believe the answer lies in bygone times. In the past, many companies showed loyalty to their employees even as a publicly traded company. Companies offered and supplied a very good pension and a secure retirement future to retain valuable employees. My company had one, however, as the division I worked for was spun off and became publicly traded themselves, that was the first thing to get cut. When a company showed loyalty to the employees through their actions, offering secure retirement pensions, affordable health care, competitive salaries, the employees in return showed their loyalty to the company. Companies no longer care for the longevity of the employees, only to maximize the employees value to the company for as long as possible before they lose them to burnout or to the competition.

Since we are on the path to financial independence, we have no loyalty to the company. Our loyalty lies to ourselves and our pursuit of freedom from the working life. We strive for the atypical life that allows us to live free of worries from money and be able to decide for ourselves where our loyalties lie. Many employees are loyal to the company because they are not confident in their ability to support themselves without the “guaranteed” pay of a steady salary. Leading the atypical life gives you the ability to not worry so much if the job were to end, as your savings rate is so high, you know everything will be okay while you look for a new job until reaching the pinnacle of atypical life, financial independence.

Striving for financial independence is all about your savings rate. The higher your savings rate the sooner freedom arrives. This is the same idea that drives companies to look only at the bottom line. They are also trying to maximize their savings rate (profit/bottom line), which seemingly makes the FIRE community and companies similar. Our striving towards higher savings rate does not affect the company, besides fringe benefits like allowing lower medical costs, since we are also a healthy community. However, the company striving for the bottom line affects us, because easy savings come from cutting benefits.

Think back to your working career if you are already free, or on your current working career if you are still a slave to the man, and see if you can think of when the company announced: we are now lowering your health insurance premium, we are raising your retirement benefits, we are giving everybody an extra week of vacation, etc. I can’t think of a single time in my short career this has happened. I still hold out hope that one day, all of the companies promises to be about the employees comes true, but I am prepared to pursue my freedom as is. Freedom is paramount and that is what we all should seek!

Do you agree? Let me know in the comments.

If you enjoyed this post, please share it on Pinterest!

company loyalty vs financial independence