Author Topic: My little green employees have outworked me.  (Read 8833 times)

MrDelane

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My little green employees have outworked me.
« on: December 20, 2017, 06:13:13 PM »
Doing some end of the year estimates I had a bit of a shock today.
Thanks to the rising market this year marks the first year where our net worth has increased more than our entire household income.

The idea of that, while common and obvious around here, hit me as really staggering when it actually happened to me.  The idea that by putting my money to work it can actually gain more than my partner and I can earn in an entire year of working... it really showed me the power of investing, in very real and impactful terms.

« Last Edit: December 20, 2017, 06:15:07 PM by MrDelane »

terran

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Re: My little green employees have outworked me.
« Reply #1 on: December 20, 2017, 07:55:42 PM »
Nice!

Not quite as impressive, but we're up more than expenses this year from the gains (even more from contributions).

ThatGuy

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Re: My little green employees have outworked me.
« Reply #2 on: December 20, 2017, 08:27:24 PM »
Congratulations!  I just hit the same achievement.  I'm waiting for the market to have a correction but for now I'm enjoying the run.

MrDelane

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Re: My little green employees have outworked me.
« Reply #3 on: December 20, 2017, 09:34:45 PM »
Thanks.

It's a bit surreal when you look at the raw numbers, but it makes complete sense.

We have had a minimum 50% savings rate for a few years now - so it was only a matter of time before the gains in the 'stache would outweigh the amount we put into it.  But seeing the gains outweigh the amount we even MAKE is pretty cool.

I always knew savings rate was more important than income level, but today I feel like I finally fully grasp that truth.

soccerluvof4

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Re: My little green employees have outworked me.
« Reply #4 on: December 21, 2017, 07:35:44 AM »
Nice!

Not quite as impressive, but we're up more than expenses this year from the gains (even more from contributions).


This would be us too for 2017


Doing some end of the year estimates I had a bit of a shock today.
Thanks to the rising market this year marks the first year where our net worth has increased more than our entire household income.

The idea of that, while common and obvious around here, hit me as really staggering when it actually happened to me.  The idea that by putting my money to work it can actually gain more than my partner and I can earn in an entire year of working... it really showed me the power of investing, in very real and impactful terms.





Congratulations!! seeing IS believing! 

lexde

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Re: My little green employees have outworked me.
« Reply #5 on: December 21, 2017, 08:21:16 AM »
Wow, that’s an incredible achievement! Congratulations!


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MaybeBabyMustache

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Re: My little green employees have outworked me.
« Reply #6 on: December 21, 2017, 02:20:44 PM »
Super cool & motivating. Congrats!

ozbeach

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Re: My little green employees have outworked me.
« Reply #7 on: December 21, 2017, 03:23:10 PM »
Congratulations! It's a great feeling isn't it.

My NW has increased more than my annual income for the last few years, but I haven't paid it too much attention as it is mostly a result of savings, and the insane real-estate market here in Australia. This year however I have been on sabbatical so my income is less than 1/3 normal and yet, with almost no savings, my NW has increased about the same as usual including, for the first time ever, more made in my retirement accounts than my normal income.

It's going to make going back to work in January even harder!

zinnie

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Re: My little green employees have outworked me.
« Reply #8 on: December 21, 2017, 04:05:18 PM »
Awesome! That's great motivation to see that happen. Great job.

sisto

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Re: My little green employees have outworked me.
« Reply #9 on: December 27, 2017, 09:21:14 AM »
This year was crazy, my NW increased 2X my household income! Crazy!

ThatGuy

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Re: My little green employees have outworked me.
« Reply #10 on: December 28, 2017, 12:18:38 PM »
This year was crazy, my NW increased 2X my household income! Crazy!

WOW!  That's impressive.

Leisured

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Re: My little green employees have outworked me.
« Reply #11 on: December 30, 2017, 05:21:47 AM »
Congratulations, MrDelane. It reminds me of the book 'The Richest Man in Babylon', by George Clason. The author suggested that if you buy things, you are paying other people, but if you save and invest, your investments pay you.


SwordGuy

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Re: My little green employees have outworked me.
« Reply #12 on: December 30, 2017, 06:52:00 AM »
Our stock market investment returns were 96% of our gross salaries.

If you count social security, which is a mandatory investment for us, our investments returned 114% of our gross salaries.

Toss in rental income and we're at 120% of our gross salaries.

Not bad for about 8 hours of work on those items...

If we include the 401K savings and matches our net worth went up about 163% of our gross salaries.

That's a nice bonus for falling victime to OMY - One More Year syndrome.

Our FIRE date is now firmly in May.


Fomerly known as something

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Re: My little green employees have outworked me.
« Reply #13 on: December 31, 2017, 10:49:48 AM »
Add me to having been outworked by the greenbacks.  What a crazy year.

ardrum

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Re: My little green employees have outworked me.
« Reply #14 on: January 01, 2018, 06:47:22 AM »
That has to be mind-blowing!  My shocker wasn't that extreme, but I realized my 2017 investment total gains exceeded my annual expenses even though I'm not even yet at 5x living expenses net worth. 

FernFree

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Re: My little green employees have outworked me.
« Reply #15 on: January 01, 2018, 11:24:17 PM »
This year was crazy, my NW increased 2X my household income! Crazy!

Mine was about the same.  Amazing year!  I just nodded when my ex-husband berated me for not paying off the house mortgage yet and told me how only dummies are in the stock market.  Whatever. :)

itchyfeet

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Re: My little green employees have outworked me.
« Reply #16 on: January 02, 2018, 02:50:30 AM »
Congratulations everyone.

We had some great achievements too
 - 3rd year running where NW growth was greater than salaries
 - Investment returns in 2017 were 157% of our post FIRE budget spending.
 - Our stash has now passed 20x our post FIRE annual budget ie: if we FIRED today we would be looking at less than a 5% draw down rate.

I cant say that our green workers are outworking us, as our investment returns were only about 60% of our salaries.

(FWIW, if you are trying to understand the math our expenses were much higher in 2017 than they will be post FIRE for a variety of reasons, but we still saved ~50% of our salaries and that is fine with us!).



stashgrower

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Re: My little green employees have outworked me.
« Reply #17 on: January 02, 2018, 03:27:28 AM »
Inspiring to hear! Congrats :D

sisto

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Re: My little green employees have outworked me.
« Reply #18 on: January 02, 2018, 10:39:29 AM »
This year was crazy, my NW increased 2X my household income! Crazy!

Mine was about the same.  Amazing year!  I just nodded when my ex-husband berated me for not paying off the house mortgage yet and told me how only dummies are in the stock market.  Whatever. :)
Good for you! I was chatting with my uncle at a family holiday party over the weekend. He was telling me about how successful he has been in timing the market. I just simply stated I've done just fine with buy/hold and not letting the market move me.

Dicey

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Re: My little green employees have outworked me.
« Reply #19 on: January 08, 2018, 08:53:36 AM »
Congratulations!

Before we went paperless, it was fun to open the monthly investment statement and see it showed more increase than we'd earned that month.

If I may just whisper it quietly, this is one of the secret thrills of not prepaying the mortgage, but funneling the extra dollars into investments first. Shhh, I don't want to get anyone too riled up...
« Last Edit: January 08, 2018, 04:08:56 PM by Dicey »

Bateaux

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Re: My little green employees have outworked me.
« Reply #20 on: January 08, 2018, 11:25:54 AM »
Figuring a modest 5 % return, our little green guys make $11 an hour.  Every hour, every day of the year.  All their wages go back in the pot and their hourly rate grows.

AnswerIs42

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Re: My little green employees have outworked me.
« Reply #21 on: January 09, 2018, 06:19:33 PM »
Just done my net worth spreadsheet for the year, and mine's gone up by more than my whole salary over 2017 as well. Not just by a little bit, either - comfortably more.

It's pretty mind-blowing. This MMM stuff does actually work.

JamieNewmarket

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Re: My little green employees have outworked me.
« Reply #22 on: January 27, 2018, 10:59:39 AM »
Congrats all! Same thing over here for 2017.  I was less shocked by this, but it has really hit home for my wife, which is the real win as we now are seeing a similar endgame to FIRE. 

sol

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Re: My little green employees have outworked me.
« Reply #23 on: January 27, 2018, 11:14:41 AM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

Brother Esau

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Re: My little green employees have outworked me.
« Reply #24 on: January 27, 2018, 11:43:45 AM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

Thank you Debbie Downer!

PaulMaxime

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Re: My little green employees have outworked me.
« Reply #25 on: January 27, 2018, 11:47:59 AM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

That happened to me on Jan 2016.

March 2016 gained most of it back.

sisto

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Re: My little green employees have outworked me.
« Reply #26 on: January 28, 2018, 09:35:40 AM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.
While it will be hard, I totally expect it will come and I totally expect to ride it out without changing my AA one bit. I've held strong through them before and I'll do it again. I'm hoping it comes sooner rather than later due to the fact I'm just over 3 years away from FIRE.

MrDelane

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Re: My little green employees have outworked me.
« Reply #27 on: January 28, 2018, 10:41:25 AM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

Please do, Sol.
I've been thinking about that a lot lately and I hope it will help me keep a level head when the next recession comes.

ScreamingHeadGuy

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Re: My little green employees have outworked me.
« Reply #28 on: January 28, 2018, 06:40:29 PM »
I like to joke with my wife our dog "works" at laying around the house all day and thus "earns" our investment returns.  Way more fun than little green employees.

Icecreamarsenal

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Re: My little green employees have outworked me.
« Reply #29 on: January 29, 2018, 08:57:09 AM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

Thank you Debbie Downer!


Ha! It's the wet blankets that make you appreciate those that aren't!
And I bet you he won't.

acroy

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Re: My little green employees have outworked me.
« Reply #30 on: January 29, 2018, 11:45:48 AM »
badass, congratulations!
Love those LGM ;)

Stachless

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Re: My little green employees have outworked me.
« Reply #31 on: February 08, 2018, 09:38:29 PM »
My Little Green Soldiers all appear to be on a week-long bender in Vegas.  I may have to join them.

sol

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Re: My little green employees have outworked me.
« Reply #32 on: February 08, 2018, 10:47:16 PM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

Are... are... are we there yet?  How many people present lost more money in today's 4.6% drop than they spend in a year?  Presumably, every retired person with a 4% SWR, right?

When I saw posts like these two...
mine's gone up by more than my whole salary over 2017 as well. Not just by a little bit, either
it was fun to open the monthly investment statement and see it showed more increase than we'd earned that month.

...I wasn't predicting that they would be hilarious QUITE so quickly.

itchyfeet

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Re: My little green employees have outworked me.
« Reply #33 on: February 08, 2018, 11:28:09 PM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

Are... are... are we there yet?  How many people present lost more money in today's 4.6% drop than they spend in a year?  Presumably, every retired person with a 4% SWR, right?

When I saw posts like these two...
mine's gone up by more than my whole salary over 2017 as well. Not just by a little bit, either
it was fun to open the monthly investment statement and see it showed more increase than we'd earned that month.

...I wasn't predicting that they would be hilarious QUITE so quickly.

Lol. Lucky every one here knows that the market rises and falls, so nobody will get upset and precious about your black humour

Lyssa

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Re: My little green employees have outworked me.
« Reply #34 on: February 11, 2018, 02:29:39 PM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

Are... are... are we there yet?  How many people present lost more money in today's 4.6% drop than they spend in a year?  Presumably, every retired person with a 4% SWR, right?


No idea about a specific day but yes, I lost more during the last two weeks than I spent last year.

Thankfully, I have not invested my year end bonus (paid mid January) yet (thanks procrastination!) and can now buy at a discount.
« Last Edit: February 12, 2018, 12:14:10 AM by Lyssa »

Lews Therin

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Re: My little green employees have outworked me.
« Reply #35 on: February 11, 2018, 02:47:37 PM »
When you have 200k+ employees, it costs quite a bit when they get thirsty and go out drinking....

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Re: My little green employees have outworked me.
« Reply #36 on: March 17, 2018, 06:38:17 PM »
Figuring a modest 5 % return, our little green guys make $11 an hour.  Every hour, every day of the year.  All their wages go back in the pot and their hourly rate grows.

That could be a fun ongoing calculation. How much your money makes for you hourly. When your money is making your hourly salary, your good to go!

Dicey

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Re: My little green employees have outworked me.
« Reply #37 on: March 18, 2018, 09:46:24 AM »
I'm going to point everyone to this thread when the next recession comes, and we all start losing more than our annual spending in mere days of market declines.

Are... are... are we there yet?  How many people present lost more money in today's 4.6% drop than they spend in a year?  Presumably, every retired person with a 4% SWR, right?

When I saw posts like these two...
mine's gone up by more than my whole salary over 2017 as well. Not just by a little bit, either
it was fun to open the monthly investment statement and see it showed more increase than we'd earned that month.

...I wasn't predicting that they would be hilarious QUITE so quickly.
It's hard to convey tone, so please know I'm sincerely curious and a bit confused, @sol. I'm pleased to contribute to the general hilarity around here, but what about my comment is so funny? I was referring to not being obsessed with checking balances, particularly during a downturn. During 2008, I continued to save aggressively. The market's recovery made me wealthier than I ever imagined (and FIRE). Why would I have anything to fear from the next one? I'm kinda looking forward to it. Aren't we talking about the same thing? C'mon, sol, let me in on the joke, please.

sol

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Re: My little green employees have outworked me.
« Reply #38 on: April 04, 2018, 02:24:04 PM »
It's hard to convey tone, so please know I'm sincerely curious and a bit confused, @sol. I'm pleased to contribute to the general hilarity around here, but what about my comment is so funny? I was referring to not being obsessed with checking balances, particularly during a downturn. During 2008, I continued to save aggressively. The market's recovery made me wealthier than I ever imagined (and FIRE). Why would I have anything to fear from the next one? I'm kinda looking forward to it. Aren't we talking about the same thing? C'mon, sol, let me in on the joke, please.

I didn't mean to single you out specifically.  Many of us, myself included, posted incredulously about the dec/jan market gains outpacing our salary wages.  Even then, I think we all knew that the market could just as easily take away that which it hath given.

And then the drops started in Feb.  3-5% per day, then a 10% correction, then volatility in which an entire year's worth of spending comes and goes in a matter of hours.  I don't think any of us are quite so excited about our "green employees outworking us" in the current environment.  Having large sums invested means each day potentially sees the destruction (or generation) of a college fund, a DAF donation, an overseas vacation, a life changing inheritance.  It gets nerve wracking, if you think about the dollars too much.  I'm trying to focus on the percentages, which are still small.

Plina

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Re: My little green employees have outworked me.
« Reply #39 on: April 06, 2018, 02:52:15 PM »
It's hard to convey tone, so please know I'm sincerely curious and a bit confused, @sol. I'm pleased to contribute to the general hilarity around here, but what about my comment is so funny? I was referring to not being obsessed with checking balances, particularly during a downturn. During 2008, I continued to save aggressively. The market's recovery made me wealthier than I ever imagined (and FIRE). Why would I have anything to fear from the next one? I'm kinda looking forward to it. Aren't we talking about the same thing? C'mon, sol, let me in on the joke, please.

I believe you have to look at it longterm and not look at the daily or even monthly volatility. I am not dependent on my stock portfolio Short term so I can wait  out a downturn. I donít look daily. Sometimes It goes a month by without checking because I have a long term plan. This period of the year when the dividends are being paid out I check more often because I want to reinvest them as fast as possible.

I didn't mean to single you out specifically.  Many of us, myself included, posted incredulously about the dec/jan market gains outpacing our salary wages.  Even then, I think we all knew that the market could just as easily take away that which it hath given.

And then the drops started in Feb.  3-5% per day, then a 10% correction, then volatility in which an entire year's worth of spending comes and goes in a matter of hours.  I don't think any of us are quite so excited about our "green employees outworking us" in the current environment.  Having large sums invested means each day potentially sees the destruction (or generation) of a college fund, a DAF donation, an overseas vacation, a life changing inheritance.  It gets nerve wracking, if you think about the dollars too much.  I'm trying to focus on the percentages, which are still small.