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.


Company Match$750
Expat Income$1,266
Salary (Mr. Atypical)$6,467
Salary (Mrs. Atypical)$116

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.



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


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.


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.

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financial review February 2017 Atypical Life

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