Since 2009, I’ve been writing concerning the significance of working to stay—accumulating wealth to obtain 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!
“Dwell 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” while you first graduate from college. Constructing a profession and establishing monetary safety typically 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 wanting again with remorse, wishing we had the braveness to prioritize our happiness and stay life on our personal phrases.
My Begin Of Wanting To Work To Dwell
A few years earlier than retiring from finance in 2012, my spouse and I had been dashing by means 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 shocked, however then I spotted they had been proper. We had been speed-walking by means of the 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 e book or just having fun with the second. It was a beautiful feeling—not having to endure rush-hour site visitors simply to sit down in conferences all day. Though I earned 85% much less in my first 12 months 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 the moment.
Work-to-Dwell (FIRE) Is Getting Pushed Apart Once more
I shouldn’t be too shocked that the work-to-live philosophy is fading once more. In any case, I wrote the put up Why Early Retirement/FIRE Is Turning into Out of date, 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 doubtless would have labored not less than 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 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 had 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 residing 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 youngsters, whereas the older group both runs their very own companies, has a working partner, or lives frugally on authorities help.
Proof That Dwell-to-Work Is Again And Stronger Than Ever
Among the best 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 pattern is likely one of 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. Through the pandemic, hundreds relocated to completely completely different cities to chop prices. Personally, I advocate for much less drastic measures—relocating inside your metropolis to cut back bills whereas protecting the identical wage, skilled community, and college district in your youngsters.
However what shocked me lately was seeing two houses with no views promote for effectively above asking costs on San Francisco’s rising west facet. They offered for greater than the houses out there 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 abilities 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 facet, pushed by new faculties, property developments, and the $4 billion UCSF Parnassus medical middle transform, which can add over 1,400 new jobs.
I feel these two houses are nice—I’m simply shocked they offered 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 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 identical value and in the end offered for $3,125,000. Nevertheless, I doubted it could go $750,000 over asking once more. That could be a scary sum of money and share to overbid.
I used to be mistaken. The house offered for $3,435,000—10% increased 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 greatest 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 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 more durable 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 Dwelling, San Francisco, CA
A single instance isn’t sufficient to declare a pattern for the brand new 12 months, 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 transform 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 mistaken. 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 principle 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 all the things isn’t all the time excellent because of noise and different disturbances. Being one block farther from the MUNI station, outlets, and eating places could 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. Dwell-to-work strikes once more! You may purchase a 300 sqft bigger, absolutely transformed residence with ocean views for 10% much less. Or you 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 lots extra examples apart from these two that present how working to stay is again.
The Dwell-to-Work Cycle Will Drive Dwelling Costs Greater
I’m not saying these homebuyers are obsessive about work—many merely should be within the workplace every day. Their areas are handy—near downtown, close to transit hubs, and inside strolling distance of retailers 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 increased. And as residence costs climb, extra folks discover themselves working extra simply to afford them. Keep in mind, increased 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 residing preparations. There’s merely an excessive amount of strain to earn extra and develop social standing.
Perhaps Excessive Revenue Households Battle On Goal
There are additionally individuals who willingly endure a 45-minute commute every manner to drop off their youngsters in school—for the subsequent 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 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 way of life. On high of paying a premium to stay nearer to work, many households in huge cities wish to ship their youngsters to personal college, which may simply value between $20,000 and $70,000 per 12 months 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 12 months 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 not any have to really feel sorry for them as a result of they’ll change their state of affairs in the event that they select. With the assistance of ProjectionLab, we carried out a case examine exhibiting how a $500,000/12 months family went from struggling to having the ability to retire early.
How Many Extra Years Will You Need to Work To Pay For A Extra Costly Dwelling?
When you have a million-dollar mindset, saving $1 million on a house equates to ~$42,000 per 12 months in risk-free earnings—or doubtlessly $100,000 per 12 months if invested at a ten% return. Personally, I’d a lot fairly save $1 million and stay 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 might have a $600,000 family earnings—the minimal I’d suggest for comfortably affording a $3 million residence (5X earnings, 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 earnings, or $60,000 a 12 months. 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 should take you 12 years to save lots of $1 million. Holy moly!
Are you telling me you’d fairly work 12 extra years simply to stay barely nearer to work, fairly than purchase the same residence 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. Perhaps a ten% gross financial savings price is just too low for a $600,000 family earnings earner. Let’s say you’re an distinctive saver, setting apart $180,000 a 12 months (30% of gross, 43% of internet earnings). You might be studying Monetary Samurai, in spite of everything.
Even then, selecting the $3 million residence 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 pricey than in your 20s. Once more, my reply is a tough no!
In case you don’t like these examples since you’re targeted 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 will not be price it.
I’ve written up to now about how a huge 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 Dwell-to-Work Mindset Perpetuates Itself
Whereas some maximize work flexibility, others are paying high greenback to make sure they’ll preserve working. Satirically, this live-to-work cycle advantages those that take part in it, as continued demand drives residence costs even increased. In case you 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 own home for a larger revenue down the highway.
However in the event 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 stay, or residing to work? As a result of in the event you’re not cautious, way of life 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 understand how the pursuit of a elaborate residence and standing retains them trapped in a piece cycle for a lot longer than vital? Do you assume the live-to-work mentality is again? How can we encourage folks to cease following the herd and take into account different life?
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 more durable to afford my payments. Ultimately, I made a decision to downsize to a smaller, extra inexpensive residence as a result of I wished to stay extra. Though I misplaced status, standing, and cash, I gained one thing much more beneficial—freedom.
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Change Your Life For The Higher
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