Since 2009, I’ve been writing concerning the significance of working to reside—accumulating wealth to obtain monetary independence and freedom. However regardless of years of advocating for this life-style, I’ve come to appreciate that convincing individuals stays an uphill battle. As a substitute, I now have new proof that live-to-work is again and stronger than ever!
“Stay to work” describes a mindset the place an individual’s life revolves primarily round their profession or job. Individuals who “reside to work” usually prioritize their work above private pursuits, relationships, or leisure. Their id and self-worth could also be carefully tied to their skilled achievements and productiveness.
I perceive the significance of “dwelling to work” while you first graduate from college. Constructing a profession and establishing monetary safety usually require dedication and lengthy hours. Nonetheless, there comes some extent when we have to resolve what really issues and when sufficient is sufficient. In any other case, we danger trying again with remorse, wishing we had the braveness to prioritize our happiness and reside life on our personal phrases.
My Begin Of Wanting To Work To Stay
A few years earlier than retiring from finance in 2012, my spouse and I have been speeding via Venice, Italy when an older couple stopped us and mentioned, “Take it gradual and go searching. There’s no hurry to get to the place you’re going.” At first, I used to be stunned, however then I noticed they have been proper. We have been speed-walking via town like New Yorkers in Midtown Manhattan.
Once I lastly constructed up the braveness to barter a severance and depart my job, I spent late mornings sitting in Golden Gate Park, studying a ebook or just having fun with the second. It was a beautiful feeling—not having to endure rush-hour site visitors simply to sit down in conferences all day. Despite the fact that I earned 85% much less in my first 12 months of retirement, I used to be happier as a result of I used to be free.
Ultimately, I might lastly benefit from the public parks and providers my six-figure tax payments had been paying for over the previous decade. It felt good to interrupt free from the live-to-work mentality—the relentless pursuit of extra money and better standing. On reflection, it was bizarre to let go at 34, however I do not remorse it at 47 immediately.
Work-to-Stay (FIRE) Is Getting Pushed Apart Once more
I shouldn’t be too stunned that the work-to-live philosophy is fading once more. In spite of everything, I wrote the put up Why Early Retirement/FIRE Is Changing into Out of date, which argued that elevated office flexibility had lowered the urgency to retire early. If I solely had to enter the workplace 2-3 days per week, I probably would have labored no less than 5 years longer.
Simply final week, I performed pickleball from 2 – 3:45 PM with somebody who works at Uber. He informed me his firm solely requires workers to be within the workplace on Tuesdays and Thursdays, giving him a four-day weekend. This season, he’s been snowboarding in Lake Tahoe virtually each week. On Fridays and Mondays, he takes video conferences till about 11 AM, will get in six runs on the slopes from 11:30 AM to 1 PM, after which logs again in for work.
Spending time on the pickleball and tennis courts led me to imagine that extra individuals have been embracing versatile work. Nonetheless, assembly a couple of people with relaxed schedules is one factor—seeing how individuals spend their cash is one other. And from what I’ve noticed, essentially the most critical professionals—those dwelling to work—are literally doubling down on work put up pandemic.
The fact is that the majority of my noon pickleball companions fall into two teams: individuals of their 20s and people over 50. The youthful crowd are all renters with out youngsters, whereas the older group both runs their very own companies, has a working partner, or lives frugally on authorities help.
Proof That Stay-to-Work Is Again And Stronger Than Ever
Top-of-the-line issues to come back out of the pandemic was widespread distant work. Past eliminating commutes and pointless face time, it additionally allowed individuals to save on housing prices by shifting farther from metropolis facilities. This development is likely one of the the reason why I have been investing in heartland actual property since 2016.
In San Francisco, it can save you 40%–60% on lease or house costs simply by shifting 3–5 miles west. Through the pandemic, hundreds relocated to completely completely different cities to chop prices. Personally, I advocate for much less drastic measures—relocating inside your metropolis to scale back bills whereas conserving the identical wage, skilled community, and college district on your youngsters.
However what shocked me just lately was seeing two properties with no views promote for nicely above asking costs on San Francisco’s rising west aspect. They bought for greater than the properties out there with ocean views. I had toured each properties extensively and estimated their last promoting costs. I do that for each property I go to to maintain my pricing forecast abilities sharp.
For context, I’m bullish on San Francisco actual property, notably as a result of development of synthetic intelligence. I’m particularly optimistic concerning the metropolis’s west aspect, pushed by new faculties, property developments, and the $4 billion UCSF Parnassus medical middle transform, which is able to add over 1,400 new jobs.
I feel these two properties are nice—I’m simply stunned they bought for a lot greater than my estimates, when you should purchase nicer properties with views simply 0.5 – 1 miles away, for much less.
Instance #1: West Portal Home, San Francisco, CA
This absolutely transformed 3-bedroom, 3.5-bathroom, 2,836-square-foot house within the West Portal neighborhood bought for $3,125,000 in April 2024. Given my optimistic stance on west-side San Francisco actual property, I projected a 4% appreciation in 2025, bringing its estimated worth to $3,250,000.
It was re-listed in 2025 at $2,495,000 to generate curiosity—just like its 2024 technique when it was listed on the identical worth and finally bought for $3,125,000. Nonetheless, I doubted it will go $750,000 over asking once more. That could be a scary amount of cash and proportion to overbid.
I used to be improper. The house bought for $3,435,000—10% greater than its 2024 worth, and $393,799 over Redfin’s estimate.
Why I Had My Doubts It Would Promote For So A lot
The house’s largest promoting level, in response to actual property brokers, was its proximity to the MUNI station. A five-minute stroll to the prepare, an eight-minute wait, a 15-minute journey, and also you’re in downtown San Francisco.
However I debated this logic with my actual property agent. “Why would somebody pay an enormous premium for a house simply to have a brief commute to work underneath fluorescent lights for 8-10 hours a day? That doesn’t sound enjoyable. By paying that housing premium, they’re locking themselves into working even tougher to afford it.”
Her response? “What if they’ve to enter the workplace?” Good level. That ended the talk as a result of it jogged my memory that I am on this FIRE bubble the place I refuse to work longer than I’ve to. Solely a minority of individuals are private finance lovers, whereas the overwhelming majority of Monetary Samurai readers are.
Instance #2: Smaller West Portal Dwelling, San Francisco, CA
A single instance isn’t sufficient to declare a development for the brand new 12 months, however then I got here throughout one other. This 3-bedroom, 3-bathroom house, 2,230 sqft (600 sq. toes smaller than the primary), was considerably move-in prepared, although its transform was 25–30 years outdated. So it did not really feel practically as good as the primary house. Actually, I might need to spend $100,000 – $200,000 transforming it.
It was additionally listed at $2,495,000, and I estimated it will promote for about $2.8 million. Once more, I used to be improper. It bought for $3,039,159—over $359,000 above Redfin’s estimate, or $1,362/sqft. By no means would I’ve guessed the house would recover from $3 million.
Why the premium? A slight skyline view from the principle bed room and a seven-minute stroll to the MUNI station as an alternative of 5. In a earlier put up, I discussed that proudly owning a house inside strolling distance of every part isn’t all the time excellent because of noise and different disturbances. Being one block farther from the MUNI station, retailers, and eating places might have made this house barely extra fascinating to consumers.
As soon as once more, actual property brokers confirmed that each one the consumers have been households prioritizing proximity to public transportation. Stay-to-work strikes once more! You might purchase a 300 sqft bigger, absolutely transformed house with ocean views for 10% much less. Or you possibly can purchase the same high quality home 1 mile away additionally close to a MUNI station for 33% much less.
Clearly, my recommendation for individuals to search out extra inexpensive properties a bit farther from work appears to be failing. And don’t be concerned, I’ve a lot extra examples in addition to these two that present how working to reside is again.
The Stay-to-Work Cycle Will Drive Dwelling Costs Larger
I’m not saying these homebuyers are obsessive about work—many merely have to be within the workplace each day. Their areas are handy—near downtown, close to transit hubs, and inside strolling distance of retailers and eating places. Once more, these are nice properties in a pleasant neighborhood.
However the actuality is that the necessity to work fuels demand for properties close to places of work and public transportation, driving costs greater. And as house costs climb, extra individuals discover themselves working extra simply to afford them. Bear in mind, greater house costs means extra upkeep, insurance coverage, and property taxes to pay for.
This cycle gained’t break anytime quickly, regardless of the private finance neighborhood’s greatest efforts to encourage extra inexpensive dwelling preparations. There’s merely an excessive amount of stress to earn extra and develop social standing.
Possibly Excessive Earnings Households Wrestle On Goal
There are additionally individuals who willingly endure a 45-minute commute every approach to drop off their youngsters in school—for the following 8 to 12 years—just because they refuse to surrender the standing of their present neighborhood. As a substitute of shifting nearer and slicing the drive all the way down to underneath 10 minutes, they keep put as a result of they don’t suppose the brand new space is “fancy” sufficient.
Monetary independence is about creating choices, but we’re seeing a shift again towards working tougher simply to maintain an costly life-style. On prime of paying a premium to reside nearer to work, many households in massive cities need to ship their youngsters to non-public college, which might simply value between $20,000 and $70,000 per 12 months per little one. Add on a automotive or two, holidays, high quality eating, and supplemental classes for his or her youngsters, and even households making $500,000+ a 12 months are simply scraping by.
Such households aren’t being irrational—they’re selecting to pay as a result of they imagine the advantages are value it. In different phrases, there isn’t any have to really feel sorry for them as a result of they’ll change their state of affairs in the event that they select. With the assistance of ProjectionLab, we performed a case research exhibiting how a $500,000/12 months family went from struggling to having the ability to retire early.
How Many Extra Years Will You Must Work To Pay For A Extra Costly Dwelling?
In case you have a million-dollar mindset, saving $1 million on a house equates to ~$42,000 per 12 months in risk-free earnings—or doubtlessly $100,000 per 12 months if invested at a ten% return. Personally, I’d a lot somewhat save $1 million and reside a mile farther away on the MUNI line with a barely longer commute than be pressured to work many extra years simply to afford my house.
Let’s run the numbers. Say you could have a $600,000 family earnings—the minimal I’d advocate for comfortably affording a $3 million house (5X earnings, although ideally, it must be 3X). However as an alternative of choosing a $2 million house only one mile farther, you purchase the dearer one as a result of it feels extra prestigious and handy.
Now, let’s assume you’re a disciplined saver, placing away 10% of your gross earnings, or $60,000 a 12 months. That’s about 14% of your after-tax earnings of $420,000 (assuming a 30% efficient tax price). With a 5% compound annual return, it’ll take you 12 years to save lots of $1 million. Holy moly!
Are you telling me you’d somewhat work 12 extra years simply to reside barely nearer to work, somewhat than purchase the same house a bit farther away for much less and not should work for 12 further years? That’s a trade-off I wouldn’t make.
A Extra Aggressive Saver Can Sacrifice Much less Time
OK, high quality. Possibly a ten% gross financial savings price is simply too low for a $600,000 family earnings earner. Let’s say you’re an distinctive saver, setting apart $180,000 a 12 months (30% of gross, 43% of internet earnings). You’re studying Monetary Samurai, in any case.
Even then, selecting the $3 million house over the $2 million choice means working 5 further years—assuming a 5% annual return. And in the event you’re middle-aged, these 5 years are far more expensive than in your 20s. Once more, my reply is a tough no!
In case you don’t like these examples since you’re targeted on absolutely the greenback worth of the properties, strive shifting your perspective. Assume in percentages as an alternative. Paying 50% extra for a barely shorter commute will not be value it.
I’ve written up to now about how a massive costly house can derail your path to monetary freedom. Nonetheless, I do not suppose many individuals actually care till it is too late. Do the mathematics please.
The Stay-to-Work Mindset Perpetuates Itself
Whereas some maximize work flexibility, others are paying prime greenback to make sure they’ll maintain working. Sarcastically, this live-to-work cycle advantages those that take part in it, as continued demand drives house costs even greater. In case you purchase into this mindset, one of the best factor you are able to do is encourage others to do the identical—as a result of that may enhance the chances of promoting your property for a better revenue down the highway.
However in the event you’re nonetheless within the wealth accumulation part or are depressing at work, take a step again and ask your self: Are you working to reside, or dwelling to work? As a result of in the event you’re not cautious, life-style inflation may lure you within the latter—with out you even realizing it.
Readers, why will we select unenjoyable work over experiencing freedom sooner? Do individuals not run the numbers and understand how the pursuit of a flowery house and standing retains them trapped in a piece cycle for much longer than crucial? Do you suppose the live-to-work mentality is again? How can we encourage individuals to cease following the herd and think about various existence?
For brand spanking new readers: I lived to work for 13 years in funding banking. I purchased the good home in a flowery neighborhood, which solely pressured me to work tougher to afford my payments. Finally, I made a decision to downsize to a smaller, extra inexpensive house as a result of I needed to reside extra. Though I misplaced status, standing, and cash, I gained one thing way more invaluable—freedom.
Let Professionals Make investments In Actual Property For You
Spend money on actual property with out the burden of a mortgage, tenants, or upkeep with Fundrise. With virtually $3 billion in belongings underneath administration and 350,000+ buyers, Fundrise focuses on residential and industrial actual property. Throughout occasions of turmoil, actual property tends to outperform.
In case you don’t need to reside to work eternally, it’s essential to save aggressively and make investments correctly. Actual property is my favourite asset class for constructing wealth due to its utility, earnings potential, and relative stability. The highly effective mixture of rental earnings and property appreciation makes it among the best methods for the common individual to develop wealth over time.
I’ve personally invested $300,000 with Fundrise to generate extra passive earnings. The funding minimal is simply $10, so it is easy for anyone to dollar-cost common in and construct publicity. Fundrise is a long-time sponsor of FS.
Change Your Life For The Higher
If you wish to construct extra wealth than 93% of People, order a duplicate of my new ebook, Millionaire Milestones: Easy Steps to Seven Figures. With over 30 years of finance expertise, I am going to assist you obtain monetary freedom sooner, so you possibly can break away and do extra of what you really need!
Hear and subscribe to The Monetary Samurai podcast on Apple or Spotify. I interview specialists of their respective fields and talk about a number of the most attention-grabbing subjects on this web site. Your shares, rankings, and critiques are appreciated.
To expedite your journey to monetary freedom, be part of over 60,000 others and subscribe to the free Monetary Samurai e-newsletter. Monetary Samurai is among the many largest independently-owned private finance web sites, established in 2009. The whole lot is written based mostly on firsthand expertise and experience as a result of cash is simply too essential to be left as much as change. We have got one life, let’s get our cash proper the primary time.
