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 understand 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 “reside 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 “dwelling to work” whenever you first graduate from college. Constructing a profession and establishing monetary safety usually require dedication and lengthy hours. Nevertheless, there comes a degree 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 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 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 shocked, however then I noticed they have been proper. We have been speed-walking by means of 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 guide or just having fun with the second. It was a beautiful feeling—not having to endure rush-hour visitors simply to sit down in conferences all day. Despite the fact that 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 larger standing. Looking back, it was bizarre to let go at 34, however I do not remorse it at 47 as we speak.
Work-to-Reside (FIRE) Is Getting Pushed Apart Once more
I shouldn’t be too shocked that the work-to-live philosophy is fading once more. In spite of everything, I wrote the put up 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 seemingly 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 advised me his firm solely requires staff 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 a number 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 severe professionals—those dwelling to work—are literally doubling down on work put up 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 children, whereas the older group both runs their very own companies, has a working partner, or lives frugally on authorities help.
Proof That Reside-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 transferring farther from metropolis facilities. This development 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. In the course of the pandemic, hundreds relocated to thoroughly totally different cities to chop prices. Personally, I advocate for much less drastic measures—relocating inside your metropolis to scale back bills whereas protecting the identical wage, skilled community, and college district to your children.
However what shocked me lately was seeing two houses with no views promote for properly 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 closing promoting costs. I do that for each property I go to to maintain my pricing forecast expertise sharp.
For context, I’m bullish on San Francisco actual property, significantly because of the development of synthetic intelligence. I’m particularly optimistic concerning the metropolis’s west aspect, pushed by new colleges, property developments, and the $4 billion UCSF Parnassus medical middle rework, which is able to add over 1,400 new jobs.
I believe these two houses are nice—I’m simply shocked they bought for a lot greater than my estimates, when you should buy 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 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 identical value and finally bought for $3,125,000. Nevertheless, I doubted it could go $750,000 over asking once more. That could be a scary amount of cash and proportion to overbid.
I used to be mistaken. 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 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 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 fanatics, 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 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. toes smaller than the primary), was considerably move-in prepared, although its rework was 25–30 years outdated. So it did not really feel practically as good as the primary residence. In actual fact, I might need to spend $100,000 – $200,000 transforming 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 mistaken. 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 put up, I discussed that proudly owning a house inside strolling distance of the whole lot isn’t at all times ideally suited as a result 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 patrons.
As soon as once more, actual property brokers confirmed that each one the patrons have been households prioritizing proximity to public transportation. Reside-to-work strikes once more! You could possibly purchase a 300 sqft bigger, totally transformed residence with ocean views for 10% much less. Or you might 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 inexpensive houses a bit farther from work appears to be failing. And don’t be concerned, I’ve loads extra examples moreover these two that present how working to reside is again.
The Reside-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 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 workplaces 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 gained’t break anytime quickly, regardless of the private finance group’s greatest efforts to encourage extra inexpensive dwelling preparations. There’s merely an excessive amount of stress to earn extra and develop social standing.
Possibly Excessive Revenue Households Battle On Goal
There are additionally individuals who willingly endure a 45-minute commute every means to drop off their children 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 transferring nearer and chopping the drive right down to beneath 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 more durable simply to maintain an costly way of life. On prime of paying a premium to reside nearer to work, many households in massive cities need to ship their children to personal college, which may simply value between $20,000 and $70,000 per yr per little one. Add on a automobile or two, holidays, positive eating, and supplemental classes for his or her children, 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 value it. In different phrases, there is not any 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 performed a case research exhibiting how a $500,000/yr family went from struggling to with the ability to retire early.
How Many Extra Years Will You Need to Work To Pay For A Extra Costly Dwelling?
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 quite 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 gotten a $600,000 family revenue—the minimal I’d suggest for comfortably affording a $3 million residence (5X revenue, although ideally, it must 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 revenue, or $60,000 a yr. 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 residence 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, positive. Possibly 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 yr (30% of gross, 43% of internet revenue). You might be studying Monetary Samurai, in any case.
Even then, selecting the $3 million residence over the $2 million choice means working 5 additional years—assuming a 5% annual return. And if you happen to’re middle-aged, these 5 years are far more pricey than in your 20s. Once more, my reply is a tough no!
For those who 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 an alternative. Paying 50% extra for a barely shorter commute might not be value it.
I’ve written up to now about how a massive 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 maths please.
The Reside-to-Work Mindset Perpetuates Itself
Whereas some maximize work flexibility, others are paying prime greenback to make sure they will preserve working. Mockingly, this live-to-work cycle advantages those that take part in it, as continued demand drives residence costs even larger. For those who 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 can enhance the percentages of promoting your own home for a larger revenue down the highway.
However if you happen to’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 if you happen to’re not cautious, way of life inflation would possibly lure you within the latter—with out you even realizing it.
Readers, why can 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 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 take into account 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 inexpensive residence as a result of I needed to reside 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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