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 individuals 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 “reside to work” typically 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” whenever you first graduate from college. Constructing a profession and establishing monetary safety typically require dedication and lengthy hours. Nevertheless, there comes some extent when we have to determine what actually issues and when sufficient is sufficient. In any other case, we danger wanting 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 Dwell
A few years earlier than retiring from finance in 2012, my spouse and I had been dashing by Venice, Italy when an older couple stopped us and stated, “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 had been proper. We had been speed-walking by the town like New Yorkers in Midtown Manhattan.
After 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 site visitors simply to take a seat in conferences all day. Although 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.
Ultimately, I may 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 extra money and larger standing. Looking back, it was bizarre to let go at 34, however I do not remorse it at 47 immediately.
Work-to-Dwell (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 publish Why Early Retirement/FIRE Is Changing into Out of date, which argued that elevated office flexibility had lowered the urgency to retire early. If I solely had to enter the workplace 2-3 days per week, I doubtless 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 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 imagine that extra individuals had been embracing versatile work. Nevertheless, assembly a number of people with relaxed schedules is one factor—seeing how individuals 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 publish pandemic.
The fact is that almost all of my noon pickleball companions fall into two teams: individuals 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 Dwell-to-Work Is Again And Stronger Than Ever
Top-of-the-line issues to come back out of the pandemic was widespread distant work. Past eliminating commutes and pointless face time, it additionally allowed individuals to save on housing prices by transferring farther from metropolis facilities. This development is without doubt one of the the explanation 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. Throughout 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 faculty district in your children.
However what shocked me not too long ago was seeing two properties with no views promote for effectively above asking costs on San Francisco’s rising west aspect. They offered for greater than the properties obtainable with ocean views. I had toured each properties extensively and estimated their ultimate 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 aspect, pushed by new colleges, property developments, and the $4 billion UCSF Parnassus medical middle transform, which is able to add over 1,400 new jobs.
I feel these two properties are nice—I’m simply stunned they offered for a lot greater than my estimates, when you should buy nicer properties 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 offered for $3,125,000 in April 2024. Given my constructive 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 value and finally offered 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 offered 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 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 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 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 House, San Francisco, CA
A single instance isn’t sufficient to declare a development 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 outdated. So it did not really feel almost as good as the primary residence. Actually, I’d wish 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 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 publish, I discussed that proudly owning a house inside strolling distance of all the things isn’t all the time ultimate as a result 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 would purchase a 300 sqft bigger, totally transformed residence with ocean views for 10% much less. Or you may purchase an analogous high quality home 1 mile away additionally close to a MUNI station for 33% much less.
Clearly, my recommendation for individuals to seek out extra inexpensive properties a bit farther from work appears to be failing. And don’t be concerned, I’ve lots extra examples moreover these two that present how working to reside is again.
The Dwell-to-Work Cycle Will Drive House Costs Increased
I’m not saying these homebuyers are obsessive about work—many merely should be within the workplace each 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 properties in a pleasant neighborhood.
However the actuality is that the necessity to work fuels demand for properties close to places of work and public transportation, driving costs greater. And as residence costs climb, extra individuals 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 received’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 stress to earn extra and develop social standing.
Possibly Excessive Revenue Households Wrestle On Goal
There are additionally individuals who willingly endure a 45-minute commute every means to drop off their children at college—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 reducing the drive right down to beneath 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 way of life. On high of paying a premium to reside nearer to work, many households in large cities wish to ship their children to non-public college, which might simply value between $20,000 and $70,000 per 12 months per youngster. Add on a automotive or two, holidays, high quality eating, and supplemental classes for his or her children, 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 value it. In different phrases, there isn’t any must 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 carried out a case research 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 House?
If in case 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 slightly save $1 million and reside 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 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 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’ll 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 an analogous 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, high quality. 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 12 months (30% of gross, 43% of web earnings). You might be studying Monetary Samurai, in spite of everything.
Even then, selecting the $3 million residence over the $2 million possibility means working 5 further 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!
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. Suppose 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 large 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 will hold working. Mockingly, this live-to-work cycle advantages those that take part in it, as continued demand drives residence costs even greater. If you happen to 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 enhance the percentages of promoting your house 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 residing to work? As a result of if you happen to’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 individuals not run the numbers and notice how the pursuit of a flowery residence and standing retains them trapped in a piece cycle for a lot longer than needed? Do you assume the live-to-work mentality is again? How can we encourage individuals to cease following the herd and think about different life?
For brand 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 helpful—freedom.
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Change Your Life For The Higher
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