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.

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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.

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.

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finances, sharing, income, expense, savings