Since 2009, I’ve been writing in regards to the significance of working to dwell—accumulating wealth to achieve financial 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!
“Reside to work” describes a mindset the place an individual’s life revolves primarily round their profession or job. Individuals who “dwell to work” usually prioritize their work above private pursuits, relationships, or leisure. Their id 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 faculty. Constructing a profession and establishing monetary safety usually require dedication and lengthy hours. Nonetheless, there comes a degree when we have to determine what really 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 dwell 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 means of 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 spotted they have been proper. We have been speed-walking by means 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 ebook or just having fun with the second. It was an exquisite 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.
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. Looking back, it was bizarre to let go at 34, however I do not remorse it at 47 in the present day.
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 any case, I wrote the put up Why Early Retirement/FIRE Is Becoming Obsolete, 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 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 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 consider 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, essentially the most severe professionals—those residing to work—are literally doubling down on work put up 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 children, 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
Among the best 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 pattern 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 dwelling costs simply by transferring 3–5 miles west. Throughout the pandemic, 1000’s relocated to thoroughly totally different cities to chop prices. Personally, I advocate for much less drastic measures—relocating within your city to scale back bills whereas holding the identical wage, skilled community, and faculty district on your children.
However what shocked me not too long ago was seeing two properties with no views promote for properly above asking costs on San Francisco’s growing west side. They offered 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, notably because of the development 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 can add over 1,400 new jobs.
I believe these two properties are nice—I’m simply stunned they offered 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 totally reworked 3-bedroom, 3.5-bathroom, 2,836-square-foot dwelling 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—just like its 2024 technique when it was listed on the similar worth and finally offered for $3,125,000. Nonetheless, I doubted it will go $750,000 over asking once more. That could be a scary sum of money and share to overbid.
I used to be unsuitable. The house offered 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 line with actual property brokers, was its proximity to the MUNI station. A five-minute stroll to the practice, 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 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 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 fanatics, 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 pattern for the brand new yr, however then I got here throughout one other. This 3-bedroom, 3-bathroom dwelling, 2,230 sqft (600 sq. toes smaller than the primary), was considerably move-in prepared, although its rework was 25–30 years outdated. So it did not really feel almost as good as the primary dwelling. In truth, I might wish 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 unsuitable. 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 owning a home within walking distance of everything isn’t always ideal as a consequence of noise and different disturbances. Being one block farther from the MUNI station, outlets, and eating places might have made this dwelling 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. Reside-to-work strikes once more! You possibly can purchase a 300 sqft bigger, totally reworked dwelling with ocean views for 10% less. Or you may purchase an identical 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 plenty more examples apart from these two that present how working to dwell is again.
The Reside-to-Work Cycle Will Drive Residence Costs Increased
I’m not saying these homebuyers are obsessive about work—many merely should be within the workplace each 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 properties in a pleasant neighborhood.
However the actuality is that the necessity to work fuels demand for properties close to workplaces and public transportation, driving costs greater. And as dwelling costs climb, extra folks discover themselves working extra simply to afford them. Keep in mind, greater dwelling 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 finest efforts to encourage extra reasonably priced residing preparations. There’s merely an excessive amount of stress to earn extra and grow social status.
Possibly Excessive Earnings Households Wrestle On Function
There are additionally individuals who willingly endure a 45-minute commute every means to drop off their children at college—for the subsequent 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 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 high of paying a premium to dwell nearer to work, many households in huge cities wish to ship their children to personal faculty, which may simply value between $20,000 and $70,000 per yr per baby. Add on a automotive or two, holidays, advantageous eating, and supplemental classes for his or her children, 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 consider the advantages are price it. In different phrases, there isn’t any must 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 being able to retire early.
How Many Extra Years Will You Need to Work To Pay For A Extra Costly Residence?
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 probably $100,000 per yr if invested at a ten% return. Personally, I’d a lot slightly 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 dwelling.
Let’s run the numbers. Say you have got a $600,000 family revenue—the minimal I’d suggest for comfortably affording a $3 million dwelling (5X revenue, although ideally, it should be 3X). However as an alternative of choosing a $2 million dwelling 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 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’ll take you 12 years to avoid wasting $1 million. Holy moly!
Are you telling me you’d slightly work 12 extra years simply to dwell barely nearer to work, slightly than purchase an identical dwelling a bit farther away for much less and not must 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 might be studying Monetary Samurai, in spite of everything.
Even then, selecting the $3 million dwelling over the $2 million possibility means working 5 additional years—assuming a 5% annual return. And in case you’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 targeted 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 is probably not price it.
I’ve written previously about how a big expensive home can derail your path to financial freedom. Nonetheless, I do not suppose 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 hold working. Satirically, this live-to-work cycle advantages those that take part in it, as continued demand drives dwelling costs even greater. If you happen to 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 private home for a better revenue down the street.
However in case 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 dwell, or residing to work? As a result of in case you’re not cautious, life-style inflation would possibly entice 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 elaborate dwelling and standing retains them trapped in a piece cycle for much longer than obligatory? Do you suppose the live-to-work mentality is again? How can we encourage folks to cease following the herd and think about different existence?
For brand spanking 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 reasonably priced dwelling as a result of I needed 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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