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.


Company Match$1,112
Expat Income$1,266
Gifts Received$50
Salary (Mr. Atypical)$6,467
Salary (Mrs. Atypical)$131

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.


Medical Expenses$70

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.


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.


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.


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 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.


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.


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.


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