Since 2009, I’ve been writing concerning the significance of working to reside—accumulating wealth to realize 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” usually 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 “dwelling to work” while you first graduate from college. Constructing a profession and establishing monetary safety usually require dedication and lengthy hours. Nevertheless, there comes some extent when we have to resolve what really issues and when sufficient is sufficient. In any other case, we threat 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 had been speeding via 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 noticed they had been proper. We had 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 guide 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 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 better standing. On reflection, it was bizarre to let go at 34, however I do not remorse it at 47 at this time.
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 decreased the urgency to retire early. If I solely had to enter the workplace 2-3 days every week, I possible would have labored a minimum of 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 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 had been embracing versatile work. Nevertheless, assembly a couple of 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 critical professionals—those dwelling to work—are literally doubling down on work submit pandemic.
The fact is that almost all 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 on housing prices by shifting farther from metropolis facilities. This development is among the the explanation why I have been investing in heartland actual property since 2016.
In San Francisco, it can save you 40%–60% on hire or residence costs simply by shifting 3–5 miles west. Throughout the pandemic, hundreds relocated to thoroughly completely different cities to chop prices. Personally, I advocate for much less drastic measures—relocating inside your metropolis to scale back bills whereas holding the identical wage, skilled community, and faculty district on 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 rising west aspect. They bought for greater than the houses obtainable 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, significantly 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 heart rework, which can add over 1,400 new jobs.
I believe 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: West Portal Home, San Francisco, CA
This absolutely transformed 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—much like its 2024 technique when it was listed on the similar value and in the end 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% greater 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 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 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 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 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 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 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 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 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 a substitute of 5. In a earlier submit, I discussed that proudly owning a house inside strolling distance of all the pieces isn’t all the time very best as a consequence 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 had been households prioritizing proximity to public transportation. Stay-to-work strikes once more! You might purchase a 300 sqft bigger, absolutely transformed residence with ocean views for 10% 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 folks to seek out extra inexpensive houses a bit farther from work appears to be failing. And don’t be concerned, I’ve loads extra examples in addition to 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 have to be within the workplace day by 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 places of work and public transportation, driving costs greater. And as residence costs climb, extra folks discover themselves working extra simply to afford them. Keep in mind, greater residence costs means extra upkeep, insurance coverage, and property taxes to pay for.
This cycle gained’t break anytime quickly, regardless of the non-public finance group’s finest efforts to encourage extra inexpensive dwelling preparations. There’s merely an excessive amount of strain to earn extra and develop social standing.
Possibly Excessive Earnings Households Battle On Objective
There are additionally individuals who willingly endure a 45-minute commute every method 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 an alternative of shifting nearer and reducing the drive all the way down to below 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 way of life. On high of paying a premium to reside nearer to work, many households in huge cities wish to ship their youngsters to non-public college, which might simply value between $20,000 and $70,000 per yr per youngster. Add on a automotive or two, holidays, superb 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 consider the advantages are price it. In different phrases, there is no 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 having the ability to retire early.
How Many Extra Years Will You Must Work To Pay For A Extra Costly Residence?
You probably have 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 slightly save $1 million and reside a mile farther away on the MUNI line with a barely longer commute than be compelled to work many extra years simply to afford my residence.
Let’s run the numbers. Say you’ve a $600,000 family earnings—the minimal I’d suggest for comfortably affording a $3 million residence (5X earnings, although ideally, it ought to be 3X). However as a substitute of choosing a $2 million residence 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 yr. 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 is going to take you 12 years to save lots of $1 million. Holy moly!
Are you telling me you’d slightly work 12 extra years simply to reside barely nearer to work, slightly than purchase the same residence a bit farther away for much less and not need to work for 12 further years? That’s a trade-off I wouldn’t make.
A Extra Aggressive Saver Can Sacrifice Much less Time
OK, superb. 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 yr (30% of gross, 43% of web earnings). You might be studying Monetary Samurai, in any case.
Even then, selecting the $3 million residence over the $2 million possibility 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 the event you don’t like these examples since you’re centered on absolutely the greenback worth of the houses, attempt shifting your perspective. Assume in percentages as a substitute. Paying 50% extra for a barely shorter commute might not be price it.
I’ve written previously about how an enormous costly residence can derail your path to monetary freedom. Nevertheless, 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 high greenback to make sure they will hold working. Mockingly, this live-to-work cycle advantages those that take part in it, as continued demand drives residence costs even greater. In the event you purchase into this mindset, the perfect 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 private home 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, way of life 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 understand how the pursuit of a flowery residence and standing retains them trapped in a piece cycle for a lot longer than mandatory? Do you suppose the live-to-work mentality is again? How can we encourage folks 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 great home in a flowery neighborhood, which solely pressured me to work tougher to afford my payments. Ultimately, I made a decision to downsize to a smaller, extra inexpensive residence as a result of I wished to reside extra. Though I misplaced status, standing, and cash, I gained one thing way more priceless—freedom.
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Change Your Life For The Higher
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