Since 2009, I’ve been writing in regards to the significance of working to dwell—accumulating wealth to attain monetary independence and freedom. However regardless of years of advocating for this life-style, I’ve come to appreciate 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 “dwell 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” once you first graduate from college. 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 dwell 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 sluggish 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 spotted they have been proper. We have been speed-walking by the town like New Yorkers in Midtown Manhattan.
Once I lastly constructed up the braveness to barter a severance and go away my job, I spent late mornings sitting in Golden Gate Park, studying a e-book or just having fun with the second. It was a beautiful feeling—not having to endure rush-hour visitors simply to take a seat in conferences all day. Although I earned 85% much less in my first yr of retirement, I used to be happier as a result of I used to be free.
Finally, I may 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 more cash and larger standing. Looking back, it was bizarre to let go at 34, however I do not remorse it at 47 at present.
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 any case, I wrote the submit 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 every week, I doubtless would have labored at the very least 5 years longer.
Simply final week, I performed pickleball from 2 – 3:45 PM with somebody who works at Uber. He instructed 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 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, essentially the most severe professionals—those dwelling to work—are literally doubling down on work submit pandemic.
The truth 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
The most effective issues to return out of the pandemic was widespread distant work. Past eliminating commutes and pointless face time, it additionally allowed folks to save lots of on housing prices by transferring farther from metropolis facilities. This pattern 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 residence costs simply by transferring 3–5 miles west. Throughout the pandemic, 1000’s 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 preserving the identical wage, skilled community, and college district on your youngsters.
However what shocked me not too long ago was seeing two properties with no views promote for nicely above asking costs on San Francisco’s rising west facet. They bought for greater than the properties out there with ocean views. I had toured each properties extensively and estimated their remaining 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, significantly because of the progress of synthetic intelligence. I’m particularly optimistic in regards to the metropolis’s west facet, pushed by new colleges, property developments, and the $4 billion UCSF Parnassus medical heart rework, which can 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 buy nicer properties with views simply 0.5 – 1 miles away, for much less.
Instance #1: West Portal Home, San Francisco, CA
This totally reworked 3-bedroom, 3.5-bathroom, 2,836-square-foot residence 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 similar value and finally bought 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 flawed. The house bought 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 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 trip, 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 below 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 Dwelling, San Francisco, CA
A single instance isn’t sufficient to declare a pattern for the brand new yr, however then I got here throughout one other. This 3-bedroom, 3-bathroom residence, 2,230 sqft (600 sq. ft smaller than the primary), was considerably move-in prepared, although its rework was 25–30 years previous. So it did not really feel almost as good as the primary residence. In actual fact, I’d need 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 flawed. 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 submit, I discussed that proudly owning a house inside strolling distance of every thing isn’t all the time perfect on account of noise and different disturbances. Being one block farther from the MUNI station, retailers, and eating places might have made this residence barely extra fascinating to consumers.
As soon as once more, actual property brokers confirmed that every one the consumers have been households prioritizing proximity to public transportation. Stay-to-work strikes once more! You may purchase a 300 sqft bigger, totally reworked residence with ocean views for 10% much less. Or you would purchase the same high quality home 1 mile away additionally close to a MUNI station for 33% much less.
Clearly, my recommendation for folks to search out extra reasonably priced properties a bit farther from work appears to be failing. And don’t fret, I’ve loads extra examples moreover these two that present how working to dwell is again.
The Stay-to-Work Cycle Will Drive Dwelling Costs Increased
I’m not saying these homebuyers are obsessive about work—many merely should be within the workplace each day. Their places are handy—near downtown, close to transit hubs, and inside strolling distance of outlets 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 larger. And as residence costs climb, extra folks discover themselves working extra simply to afford them. Bear in mind, larger residence costs means extra upkeep, insurance coverage, and property taxes to pay for.
This cycle received’t break anytime quickly, regardless of the non-public finance group’s greatest efforts to encourage extra reasonably priced dwelling preparations. There’s merely an excessive amount of stress to earn extra and develop social standing.
Possibly Excessive Earnings Households Battle On Goal
There are additionally individuals who willingly endure a 45-minute commute every manner to drop off their youngsters at college—for the following 8 to 12 years—just because they refuse to surrender the standing of their present neighborhood. As an alternative of transferring nearer and slicing the drive right down to below 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 life-style. On prime of paying a premium to dwell nearer to work, many households in large cities need to ship their youngsters to non-public college, which might simply value between $20,000 and $70,000 per yr per baby. Add on a automobile or two, holidays, advantageous eating, and supplemental classes for his or her youngsters, and even households making $500,000+ a yr are simply scraping by.
Such households aren’t being irrational—they’re selecting to pay as a result of they imagine the advantages are price it. In different phrases, there is no have to really feel sorry for them as a result of they will change their state of affairs in the event that they select. With the assistance of ProjectionLab, we carried out a case research displaying how a $500,000/yr family went from struggling to having the ability to retire early.
How Many Extra Years Will You Should Work To Pay For A Extra Costly Dwelling?
When you’ve got a million-dollar mindset, saving $1 million on a house equates to ~$42,000 per yr in risk-free earnings—or probably $100,000 per yr if invested at a ten% return. Personally, I’d a lot quite save $1 million and dwell 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 residence.
Let’s run the numbers. Say you’ve gotten a $600,000 family earnings—the minimal I’d suggest for comfortably affording a $3 million residence (5X earnings, although ideally, it needs to be 3X). However as an alternative of choosing a $2 million residence only one mile farther, you purchase the costlier 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 yr. That’s about 14% of your after-tax earnings of $420,000 (assuming a 30% efficient tax charge). 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 quite work 12 extra years simply to dwell barely nearer to work, quite than purchase the same residence 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, advantageous. Possibly a ten% gross financial savings charge is just too low for a $600,000 family earnings earner. Let’s say you’re an distinctive saver, setting apart $180,000 a yr (30% of gross, 43% of internet earnings). You’re studying Monetary Samurai, in spite of everything.
Even then, selecting the $3 million residence over the $2 million choice means working 5 further years—assuming a 5% annual return. And for those who’re middle-aged, these 5 years are far more pricey than in your 20s. Once more, my reply is a tough no!
If you happen to don’t like these examples since you’re centered on absolutely the greenback worth of the properties, attempt shifting your perspective. Assume in percentages as an alternative. Paying 50% extra for a barely shorter commute will not be price it.
I’ve written previously about how a giant costly residence 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 will preserve working. Satirically, this live-to-work cycle advantages those that take part in it, as continued demand drives residence costs even larger. If you happen to purchase into this mindset, the very best factor you are able to do is encourage others to do the identical—as a result of that can enhance the chances of promoting your house for a larger revenue down the highway.
However for those who’re nonetheless within the wealth accumulation section or are depressing at work, take a step again and ask your self: Are you working to dwell, or dwelling to work? As a result of for those who’re not cautious, life-style inflation would possibly 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 notice how the pursuit of a flowery residence 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 take into account various existence?
For brand new readers: I lived to work for 13 years in funding banking. I purchased the great 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 residence as a result of I wished to dwell extra. Though I misplaced status, standing, and cash, I gained one thing much more precious—freedom.
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Change Your Life For The Higher
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