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 way of life, I’ve come to comprehend that convincing folks stays an uphill battle. As an alternative, 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” typically 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” whenever you first graduate from faculty. Constructing a profession and establishing monetary safety typically require dedication and lengthy hours. Nevertheless, there comes some extent when we have to determine 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 by Venice, Italy when an older couple stopped us and stated, “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 by the town like New Yorkers in Midtown Manhattan.
After 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 e book or just having fun with the second. It was an exquisite feeling—not having to endure rush-hour visitors simply to sit down in conferences all day. Though 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 may lastly benefit from the public parks and companies 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 larger standing. On reflection, it was bizarre to let go at 34, however I do not remorse it at 47 at the moment.
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 Turning into Out of date, which argued that elevated office flexibility had diminished the urgency to retire early. If I solely had to enter the workplace 2-3 days per week, I possible would have labored at the least 5 years longer.
Simply final week, I performed pickleball from 2 – 3:45 PM with somebody who works at Uber. He advised 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 nearly 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 folks have been embracing versatile work. Nevertheless, assembly just a few people with relaxed schedules is one factor—seeing how folks spend their cash is one other. And from what I’ve noticed, probably 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: folks 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
Probably the greatest issues to return out of the pandemic was widespread distant work. Past eliminating commutes and pointless face time, it additionally allowed folks to save on housing prices by shifting farther from metropolis facilities. This development is among 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 totally different cities to chop prices. Personally, I advocate for much less drastic measures—relocating inside your metropolis to cut back bills whereas holding the identical wage, skilled community, and faculty district to your youngsters.
However what shocked me just lately was seeing two houses with no views promote for nicely above asking costs on San Francisco’s rising west aspect. They offered for greater than the houses obtainable with ocean views. I had toured each properties extensively and estimated their closing 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 because of the progress 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 believe these two houses are nice—I’m simply stunned they offered for a lot greater than my estimates, when you should purchase nicer houses with views simply 0.5 – 1 miles away, for much less.
Instance #1: West Portal Home, San Francisco, CA
This totally transformed 3-bedroom, 3.5-bathroom, 2,836-square-foot house within the West Portal neighborhood offered 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—much like its 2024 technique when it was listed on the similar value and in the end offered for $3,125,000. Nevertheless, I doubted it could go $750,000 over asking once more. That may be a scary sum of money and share to overbid.
I used to be incorrect. The house offered for $3,435,000—10% larger than its 2024 value, and $393,799 over Redfin’s estimate.
Why I Had My Doubts It Would Promote For So A lot
The house’s greatest promoting level, in line with 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 beneath 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 more durable 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 persons are private finance lovers, whereas the overwhelming majority of Monetary Samurai readers are.
Instance #2: Smaller West Portal Residence, 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. ft smaller than the primary), was considerably move-in prepared, although its transform was 25–30 years previous. So it did not really feel practically as good as the primary house. The truth is, I might wish to spend $100,000 – $200,000 reworking it.
It was additionally listed at $2,495,000, and I estimated it could promote for about $2.8 million. Once more, I used to be incorrect. It offered 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 primary 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 all the things isn’t all the time preferrred attributable to 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 patrons.
As soon as once more, actual property brokers confirmed that each one the patrons have been households prioritizing proximity to public transportation. Stay-to-work strikes once more! You could possibly purchase a 300 sqft bigger, totally transformed house with ocean views for 10% much less. Or you may purchase an analogous high quality home 1 mile away additionally close to a MUNI station for 33% much less.
Clearly, my recommendation for folks to seek out extra reasonably priced houses a bit farther from work appears to be failing. And don’t be concerned, I’ve lots extra examples apart from these two that present how working to reside is again.
The Stay-to-Work Cycle Will Drive Residence Costs Increased
I’m not saying these homebuyers are obsessive about work—many merely must be within the workplace day by day. Their areas are handy—near downtown, close to transit hubs, and inside strolling distance of outlets and eating places. Once more, these are nice houses in a pleasant neighborhood.
However the actuality is that the necessity to work fuels demand for houses close to places of work and public transportation, driving costs larger. And as house costs climb, extra folks discover themselves working extra simply to afford them. Bear in mind, larger house costs means extra upkeep, insurance coverage, and property taxes to pay for.
This cycle received’t break anytime quickly, regardless of the private finance group’s greatest efforts to encourage extra reasonably priced dwelling preparations. There’s merely an excessive amount of strain to earn extra and develop social standing.
Perhaps Excessive Revenue 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 subsequent 8 to 12 years—just because they refuse to surrender the standing of their present neighborhood. As an alternative of shifting nearer and chopping the drive right down to beneath 10 minutes, they keep put as a result of they don’t assume the brand new space is “fancy” sufficient.
Monetary independence is about creating choices, but we’re seeing a shift again towards working more durable simply to maintain an costly way of life. On prime of paying a premium to reside nearer to work, many households in huge cities wish to ship their youngsters to personal faculty, which might simply price between $20,000 and $70,000 per 12 months per little one. Add on a automotive or two, holidays, wonderful 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 is not any must 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 carried out a case examine exhibiting how a $500,000/12 months family went from struggling to having the ability to retire early.
How Many Extra Years Will You Need to Work To Pay For A Extra Costly Residence?
When you’ve got a million-dollar mindset, saving $1 million on a house equates to ~$42,000 per 12 months in risk-free revenue—or probably $100,000 per 12 months if invested at a ten% return. Personally, I’d a lot quite 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 might have a $600,000 family revenue—the minimal I’d advocate for comfortably affording a $3 million house (5X revenue, although ideally, it ought to 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 revenue, or $60,000 a 12 months. That’s about 14% of your after-tax revenue of $420,000 (assuming a 30% efficient tax price). With a 5% compound annual return, it is going to take you 12 years to avoid wasting $1 million. Holy moly!
Are you telling me you’d quite work 12 extra years simply to reside barely nearer to work, quite than purchase an analogous house a bit farther away for much less and not should work for 12 additional years? That’s a trade-off I wouldn’t make.
A Extra Aggressive Saver Can Sacrifice Much less Time
OK, wonderful. Perhaps a ten% gross financial savings price is simply too low for a $600,000 family revenue earner. Let’s say you’re an distinctive saver, setting apart $180,000 a 12 months (30% of gross, 43% of internet revenue). You’re studying Monetary Samurai, in any case.
Even then, selecting the $3 million house over the $2 million possibility means working 5 additional 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!
Should you don’t like these examples since you’re centered on absolutely the greenback worth of the houses, strive shifting your perspective. Suppose in percentages as an alternative. Paying 50% extra for a barely shorter commute will not be value it.
I’ve written previously about how a huge costly house can derail your path to monetary freedom. Nevertheless, I do not assume many individuals actually care till it is too late. Do the maths 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. Satirically, this live-to-work cycle advantages those that take part in it, as continued demand drives house costs even larger. Should 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 can improve the chances of promoting your property for a larger revenue down the highway.
However in the event you’re nonetheless within the wealth accumulation section 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, way of life 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 folks 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 mandatory? Do you assume the live-to-work mentality is again? How can we encourage folks to cease following the herd and contemplate various existence?
For brand 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 more durable to afford my payments. Ultimately, I made a decision to downsize to a smaller, extra reasonably priced house as a result of I needed to reside extra. Though I misplaced status, standing, and cash, I gained one thing way more worthwhile—freedom.
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Change Your Life For The Higher
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