Since 2009, I’ve been writing in regards to the significance of working to reside—accumulating wealth to obtain monetary independence and freedom. However regardless of years of advocating for this life-style, 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” 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 “residing to work” while you first graduate from faculty. Constructing a profession and establishing monetary safety usually 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 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 Dwell
A few years earlier than retiring from finance in 2012, my spouse and I have been speeding by way 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 noticed they have been proper. We have been speed-walking by way of 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 e book or just having fun with the second. It was a beautiful feeling—not having to endure rush-hour visitors simply to take a seat in conferences all day. Regardless 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.
Finally, 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 better standing. On reflection, it was bizarre to let go at 34, however I do not remorse it at 47 at present.
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 any case, I wrote the submit 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 every 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 instructed 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 have been embracing versatile work. Nevertheless, assembly just a few 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 critical professionals—those residing to work—are literally doubling down on work submit pandemic.
The fact is that the majority 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
Among the finest issues to return 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 shifting farther from metropolis facilities. This pattern is among 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 house costs simply by shifting 3–5 miles west. In the course of the pandemic, 1000’s 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 college district to your children.
However what shocked me just lately was seeing two properties with no views promote for effectively above asking costs on San Francisco’s rising west facet. They bought for greater than the properties accessible 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 expertise sharp.
For context, I’m bullish on San Francisco actual property, significantly as a result of progress of synthetic intelligence. I’m particularly optimistic in regards to the metropolis’s west facet, pushed by new faculties, property developments, and the $4 billion UCSF Parnassus medical heart transform, which can add over 1,400 new jobs.
I believe these two properties are nice—I’m simply stunned they bought 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 house within the West Portal neighborhood bought 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 identical value and finally bought for $3,125,000. Nevertheless, I doubted it will go $750,000 over asking once more. That may be a scary amount of cash and share to overbid.
I used to be fallacious. 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 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 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 lovers, 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 pattern for the brand new yr, however then I got here throughout one other. This 3-bedroom, 3-bathroom house, 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 house. In actual fact, I might wish to spend $100,000 – $200,000 transforming 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 fallacious. 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 a substitute of 5. In a earlier submit, I discussed that proudly owning a house inside strolling distance of all the pieces isn’t at all times preferrred attributable to noise and different disturbances. Being one block farther from the MUNI station, outlets, and eating places might have made this house 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. Dwell-to-work strikes once more! You possibly can purchase a 300 sqft bigger, totally reworked house with ocean views for 10% much less. Or you can 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 search out extra reasonably priced properties a bit farther from work appears to be failing. And don’t fret, I’ve a lot extra examples moreover these two that present how working to reside is again.
The Dwell-to-Work Cycle Will Drive House Costs Larger
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 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 house costs climb, extra individuals discover themselves working extra simply to afford them. Keep in mind, greater house 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 neighborhood’s finest efforts to encourage extra reasonably priced residing preparations. There’s merely an excessive amount of strain 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 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 shifting nearer and chopping the drive all the way 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 more durable simply to maintain an costly life-style. On high of paying a premium to reside nearer to work, many households in massive cities wish to ship their children to personal faculty, which might simply value between $20,000 and $70,000 per yr per youngster. Add on a automotive or two, holidays, advantageous 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 no must really feel sorry for them as a result of they’ll change their scenario in the event that they select. With the assistance of ProjectionLab, we carried out a case examine displaying how a $500,000/yr family went from struggling to with the ability to retire early.
How Many Extra Years Will You Should 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 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 pressured to work many extra years simply to afford my house.
Let’s run the numbers. Say you have got a $600,000 family earnings—the minimal I’d advocate for comfortably affording a $3 million house (5X earnings, although ideally, it ought to be 3X). However as a substitute of choosing a $2 million house 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 fee). With a 5% compound annual return, it should take you 12 years to avoid wasting $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 house 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, advantageous. Possibly a ten% gross financial savings fee 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 internet earnings). You’re studying Monetary Samurai, in spite of everything.
Even then, selecting the $3 million house over the $2 million possibility means working 5 further years—assuming a 5% annual return. And when you’re middle-aged, these 5 years are far more expensive than in your 20s. Once more, my reply is a tough no!
If you happen to don’t like these examples since you’re centered on absolutely the greenback worth of the properties, strive shifting your perspective. Suppose in percentages as a substitute. Paying 50% extra for a barely shorter commute is probably not value it.
I’ve written previously about how a massive costly house can derail your path to monetary freedom. Nevertheless, I do not assume many individuals actually care till it is too late. Do the mathematics please.
The Dwell-to-Work Mindset Perpetuates Itself
Whereas some maximize work flexibility, others are paying high greenback to make sure they’ll hold working. Mockingly, this live-to-work cycle advantages those that take part in it, as continued demand drives house costs even greater. If you happen to purchase into this mindset, the perfect 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 property for a better revenue down the street.
However when 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 residing to work? As a result of when you’re not cautious, life-style inflation may entice you within the latter—with out you even realizing it.
Readers, why can we select unenjoyable work over experiencing freedom sooner? Do individuals not run the numbers and notice how the pursuit of a elaborate house and standing retains them trapped in a piece cycle for much longer than vital? Do you assume the live-to-work mentality is again? How can we encourage individuals to cease following the herd and contemplate different existence?
For brand new readers: I lived to work for 13 years in funding banking. I purchased the good home in a elaborate neighborhood, which solely pressured me to work more durable to afford my payments. Finally, I made a decision to downsize to a smaller, extra reasonably priced house as a result of I needed to reside extra. Though I misplaced status, standing, and cash, I gained one thing way more useful—freedom.
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Change Your Life For The Higher
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