If you are being paid 1k as a caregiver, that is for your services. Food, clothing, household bills (which should be divided by all household members), transportation, medication, etc. Should all be paid for by the individuals. Everyone should be paying their fair share of expenses.
However, you want to do this with contracts in place, if not, your friend will put her future need for assistance at risk. This includes your salary.
Your safest route is to find a certified elder law attorney, your friend pays, and you get all of this set up legally to protect both of you.
You get a salary for caretaking your friend (as in your profile) and use the money from your friend's account to pay for her needs. You use your own money to pay for your needs but not her needs.
However, you want to do this with contracts in place, if not, your friend will put her future need for assistance at risk. This includes your salary.
Your safest route is to find a certified elder law attorney, your friend pays, and you get all of this set up legally to protect both of you.
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