Since 2009, I’ve been writing in regards to the significance of working to stay—accumulating wealth to achieve financial independence and freedom ASAP. However regardless of years of advocating for this life-style, I’ve come to appreciate that convincing folks stays an uphill battle. As a substitute, I now have proof that live-to-work is again and stronger than ever!
“Reside to work” describes a mindset the place an individual’s life revolves primarily round their profession or job. Individuals who “stay to work” typically prioritize their work above private pursuits, relationships, or leisure. Their identification and self-worth could also be intently tied to their skilled achievements and productiveness.
I perceive the significance of “residing to work” if you first graduate from college. Constructing a profession and establishing monetary safety typically require dedication and lengthy hours. Nonetheless, there comes a degree when we have to resolve what actually issues and when sufficient is sufficient. In any other case, we risk looking back with regret, wishing we had the braveness to prioritize our happiness and stay life on our personal phrases.
My Begin Of Wanting To Work To Reside
A few years earlier than retiring from finance in 2012, my spouse and I have been speeding by way of Venice, Italy when an older couple stopped us and mentioned, “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 noticed they have been proper. We have been speed-walking by way of the town like New Yorkers in Midtown Manhattan.
After I lastly constructed up the courage to negotiate 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 an exquisite feeling—not having to endure rush-hour site visitors simply to sit down 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.
Eventually, I might 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 more cash and higher standing. Looking back, it was bizarre to let go at 34, however I do not remorse it at 47 immediately.
Work-to-Reside (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 submit Why Early Retirement/FIRE Is Becoming Obsolete, 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 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 skiing 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. Nonetheless, 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 severe professionals—those residing to work—are literally doubling down on work submit 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 spouse, or lives frugally on authorities help.
Proof That Reside-to-Work Is Again And Stronger Than Ever
Probably the greatest issues to come back 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 transferring farther from metropolis facilities. This development is likely one of the the reason why I have been investing in heartland real estate since 2016.
In San Francisco, it can save you 40%–60% on lease or house costs simply by transferring 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 within your city to cut back bills whereas holding the identical wage, skilled community, and faculty district in your youngsters.
However what shocked me just lately was seeing two houses with no views promote for effectively above asking costs on San Francisco’s growing west side. They bought for greater than the houses accessible 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, notably because of the progress of artificial 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 is able to add over 1,400 new jobs.
I feel these two houses are nice—I’m simply stunned they bought 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: XX Madrone Avenue, 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—much like its 2024 technique when it was listed on the similar worth and in the end 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 incorrect. The house bought for $3,435,000—10% larger than its 2024 worth, and $393,799 over Redfin’s estimate.
Why I Had My Doubts It Would Seel For So A lot
The house’s greatest promoting level, in accordance 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 experience, 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? Feels like torture. 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 controversy 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 fans, whereas the overwhelming majority of readers of Monetary Samurai are.
Instance #2: XXX Forest Facet Avenue, San Francisco, CA
A single instance isn’t sufficient to declare a development for the brand new yr, 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 rework was 25–30 years previous. So it did not really feel almost as luxurious as the primary house. In reality, I’d need to spend $100,000 – $200,000 remodeling 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 incorrect. 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 primary bed room and a seven-minute stroll to the MUNI station as an alternative of 5. In a earlier submit, I discussed that owning a home within walking distance of everything isn’t always ideal resulting from 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. Reside-to-work strikes once more! You could possibly purchase a 300 sqft bigger, absolutely transformed house with ocean views for 10% less.
Clearly, my recommendation for folks to seek out extra inexpensive houses a bit farther from work appears to be failing. And don’t be concerned, I’ve plenty more examples apart from these two that present how working to stay is again.
The Reside-to-Work Cycle Will Drive Dwelling Costs Increased
I’m not saying these homebuyers are obsessive about work—many merely must be within the workplace every 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 houses in a pleasant neighborhood.
However the actuality is that the necessity to work fuels demand for houses close to workplaces 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 non-public finance neighborhood’s finest efforts to encourage extra inexpensive residing preparations. There’s merely an excessive amount of stress to earn extra and grow social status.
Possibly Excessive Revenue Households Battle On Goal
There are additionally individuals who willingly endure a 45-minute commute every method to drop off their youngsters at college—for the subsequent 8 to 12 years—just because they refuse to surrender the standing of their present neighborhood. As a substitute of transferring nearer and chopping the drive all the way down to underneath 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 tougher simply to maintain an costly life-style. On high of paying a premium to stay nearer to work, many households in huge cities need to ship their youngsters to personal college, which may simply value between $20,000 and $70,000 per yr per youngster. Add on a automotive or two, holidays, advantageous eating, and supplemental classes for his or her youngsters, and even households making $500,000+ a year are just 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 will change their scenario in the event that they select. With the assistance of ProjectionLab, we performed a case research exhibiting how a $500,000/yr family went from struggling to being able to retire early.
How Many Extra Years Will You Must Work To Pay For A Extra Costly Dwelling?
If in case you have a million-dollar mindset, saving $1 million on a house equates to ~$42,000 per yr in risk-free revenue—or doubtlessly $100,000 per yr if invested at a ten% return. Personally, I’d a lot relatively save $1 million and stay half 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 may have a $600,000 family revenue—the minimal I’d advocate for comfortably affording a $3 million house (5X revenue, although ideally, it should be 3X). However as an alternative of choosing a $2 million house 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 revenue, or $60,000 a yr. That’s about 14% of your after-tax revenue of $420,000 (assuming a 30% efficient tax fee). With a 5% compound annual return, it can take you 12 years to avoid wasting $1 million. Holy moly!
Are you telling me you’d relatively work 12 extra years simply to stay barely nearer to work, relatively than purchase an identical house a bit farther away for much less and not need to work for 12 additional 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 fee is simply too low for a $600,000 family revenue earner. Let’s say you’re an distinctive saver, setting apart $180,000 a yr (30% of gross, 43% of web revenue). You’re studying Monetary Samurai, in spite of everything.
Even then, selecting the $3 million house over the $2 million choice 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!
When you’re targeted on absolutely the greenback worth of houses, 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 previously about how a big expensive home can derail your path to financial freedom. Nonetheless, I do not assume many individuals actually care till it is too late. Do the maths please.
The Reside-to-Work Mindset Perpetuates Itself
Whereas some maximize work flexibility, others are paying high greenback to make sure they will preserve working. Paradoxically, this live-to-work cycle advantages those that take part in it, as continued demand drives house costs even larger. When you purchase into this mindset, the most effective factor you are able to do is encourage others to do the identical—as a result of that may improve the chances of promoting your own home for a giant revenue down the street.
However in the event you’re nonetheless within the wealth accumulation part or are depressing, take a step again and ask your self: Are you working to stay, or residing 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 folks not run the numbers and notice how the pursuit of a elaborate house and standing retains them trapped in a piece cycle for much longer than obligatory? Do you assume the live-to-work mentality is again? How can we encourage folks to cease following the herd and contemplate different life?
For brand new readers: I lived to work for 13 years in funding banking. I purchased the great home in a elaborate neighborhood, which solely pressured me to work tougher to afford my payments. Ultimately, I made a decision to downsize to a smaller, extra inexpensive house as a result of I wished to stay extra. Though I misplaced status, standing, and cash, I gained one thing way more useful—freedom.
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Change Your Life For The Higher
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