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!
“Reside 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 identification and self-worth could also be carefully tied to their skilled achievements and productiveness.
I perceive the significance of “residing to work” once you first graduate from faculty. Constructing a profession and establishing monetary safety typically require dedication and lengthy hours. Nonetheless, there comes a degree when we have to determine 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 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 had been dashing 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 shocked, however then I spotted they had been proper. We had been speed-walking by way 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 e book 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 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 higher standing. Looking back, it was bizarre to let go at 34, however I do not remorse it at 47 in the present day.
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 publish Why Early Retirement/FIRE Is Turning 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 at the least 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 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 individuals had been embracing versatile work. Nonetheless, 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, essentially the most critical professionals—those residing to work—are literally doubling down on work publish pandemic.
The truth 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 youngsters, 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 individuals to save on housing prices by shifting farther from metropolis facilities. This development is without doubt 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 lease or dwelling costs simply by shifting 3–5 miles west. Through 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 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 nicely above asking costs on San Francisco’s rising west aspect. They bought for greater than the houses 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, notably 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 is able to add over 1,400 new jobs.
I feel these two houses are nice—I’m simply shocked 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 reworked 3-bedroom, 3.5-bathroom, 2,836-square-foot dwelling 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 in the end bought for $3,125,000. Nonetheless, I doubted it might go $750,000 over asking once more. That may be a scary amount of cash and proportion to overbid.
I used to be incorrect. 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 keeping 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 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 persons are private finance lovers, 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 dwelling, 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 almost as good as the primary dwelling. Actually, I might wish to spend $100,000 – $200,000 transforming it.
It was additionally listed at $2,495,000, and I estimated it might promote for about $2.8 million. Once more, I used to be incorrect. 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 publish, I discussed that proudly owning a house inside strolling distance of the whole lot isn’t all the time ideally suited resulting from noise and different disturbances. Being one block farther from the MUNI station, outlets, and eating places might have made this dwelling barely extra fascinating to consumers.
As soon as once more, actual property brokers confirmed that each one the consumers had been households prioritizing proximity to public transportation. Reside-to-work strikes once more! You can purchase a 300 sqft bigger, absolutely reworked dwelling with ocean views for 10% much less. Or you could possibly purchase the same 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 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 reside is again.
The Reside-to-Work Cycle Will Drive Dwelling Costs Greater
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 workplaces and public transportation, driving costs larger. And as dwelling costs climb, extra individuals discover themselves working extra simply to afford them. Keep in mind, larger dwelling 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 inexpensive residing preparations. There’s merely an excessive amount of strain to earn extra and develop social standing.
Perhaps Excessive Earnings Households Wrestle On Function
There are additionally individuals who willingly endure a 45-minute commute every method 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 slicing the drive all the way 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 tougher simply to maintain an costly way of life. On prime of paying a premium to reside nearer to work, many households in massive cities wish to ship their youngsters to non-public faculty, which might simply value between $20,000 and $70,000 per yr per baby. Add on a automobile or two, holidays, effective 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 imagine the advantages are price 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 displaying how a $500,000/yr family went from struggling to with the ability to retire early.
How Many Extra Years Will You Must Work To Pay For A Extra Costly Dwelling?
You probably have a million-dollar mindset, saving $1 million on a house equates to ~$42,000 per yr in risk-free revenue—or probably $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 pressured to work many extra years simply to afford my dwelling.
Let’s run the numbers. Say you’ve a $600,000 family revenue—the minimal I’d advocate for comfortably affording a $3 million dwelling (5X revenue, although ideally, it ought to be 3X). However as an alternative of choosing a $2 million dwelling 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 revenue, or $60,000 a yr. That’s about 14% of your after-tax revenue of $420,000 (assuming a 30% efficient tax fee). 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 quite work 12 extra years simply to reside barely nearer to work, quite than purchase the same dwelling 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, effective. Perhaps a ten% gross financial savings fee 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 spite of everything.
Even then, selecting the $3 million dwelling over the $2 million choice 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!
In the event 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 is probably not price it.
I’ve written previously about how a massive costly dwelling can derail your path to monetary freedom. Nonetheless, I do not suppose many individuals actually care till it is too late. Do the mathematics 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. Paradoxically, this live-to-work cycle advantages those that take part in it, as continued demand drives dwelling costs even larger. In the event 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 enhance the percentages of promoting your house for a higher revenue down the street.
However if you happen to’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 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 understand how the pursuit of a elaborate dwelling and standing retains them trapped in a piece cycle for a lot longer than vital? Do you suppose the live-to-work mentality is again? How can we encourage individuals to cease following the herd and take into account various 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 tougher to afford my payments. Finally, I made a decision to downsize to a smaller, extra inexpensive dwelling as a result of I needed 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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