Since 2009, I’ve been writing in regards to the significance of working to reside—accumulating wealth to obtain monetary independence and freedom ASAP. However regardless of years of advocating for this life-style, I’ve come to comprehend that convincing individuals stays an uphill battle. As a substitute, I now have 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 intently tied to their skilled achievements and productiveness.
I perceive the significance of “residing to work” whenever 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 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 had been dashing via 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 noticed they had been proper. We had been speed-walking via 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 an exquisite 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 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 more cash and better standing. On reflection, it was bizarre to let go at 34, however I do not remorse it at 47 at the moment.
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 submit 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 per 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 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 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 a couple 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 submit 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 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
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 shifting farther from metropolis facilities. This pattern is among 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 house costs simply by shifting 3–5 miles west. In the course of the pandemic, 1000’s 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 preserving the identical wage, skilled community, and college district on your children.
However what shocked me just lately was seeing two houses with no views promote for properly 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 expertise sharp.
For context, I’m bullish on San Francisco actual property, notably as a result of progress of synthetic intelligence. I’m particularly optimistic in regards to the metropolis’s west facet, 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 believe these two houses are nice—I’m simply shocked they offered 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, San Francisco, CA
This absolutely transformed 3-bedroom, 3.5-bathroom, 2,836-square-foot house 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 identical value and finally offered for $3,125,000. Nonetheless, I doubted it will go $750,000 over asking once more. That may 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 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 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 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 fans, 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. toes 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 reality, I’d wish to spend $100,000 – $200,000 reworking 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 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 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 perfect resulting from 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 patrons.
As soon as once more, actual property brokers confirmed that each one the patrons had been households prioritizing proximity to public transportation. Reside-to-work strikes once more! You can purchase a 300 sqft bigger, absolutely transformed house with ocean views for 10% much less. Or you may 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 seek out extra reasonably priced houses 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 Reside-to-Work Cycle Will Drive House Costs Greater
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 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 private finance group’s greatest efforts to encourage extra reasonably priced residing preparations. There’s merely an excessive amount of stress to earn extra and develop social standing.
Perhaps Excessive Earnings Households Battle On Objective
There are additionally individuals who willingly endure a 45-minute commute every approach to drop off their children at college—for the subsequent 8 to 12 years—just because they refuse to surrender the standing of their present neighborhood. As a substitute 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 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 may simply value between $20,000 and $70,000 per yr per little one. Add on a automotive 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 no have to 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 performed 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 Need to Work To Pay For A Extra Costly House?
When you’ve got 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 somewhat 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 might have a $600,000 family revenue—the minimal I’d advocate for comfortably affording a $3 million house (5X revenue, although ideally, it must be 3X). However as a substitute of choosing a $2 million house 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 fee). With a 5% compound annual return, it can take you 12 years to avoid wasting $1 million. Holy moly!
Are you telling me you’d somewhat work 12 extra years simply to reside barely nearer to work, somewhat than purchase the same house 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, positive. Perhaps a ten% gross financial savings fee is just 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 web revenue). You’re studying Monetary Samurai, in any case.
Even then, selecting the $3 million house over the $2 million possibility means working 5 additional years—assuming a 5% annual return. And when you’re middle-aged, these 5 years are far more pricey than in your 20s. Once more, my reply is a tough no!
When you don’t like these examples since you’re targeted on absolutely the greenback worth of the houses, strive shifting your perspective. Assume in percentages as a substitute. Paying 50% extra for a barely shorter commute will not be value it.
I’ve written prior to now about how a massive costly house can derail your path to monetary freedom. Nonetheless, I do not assume 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 high greenback to make sure they’ll maintain working. Satirically, this live-to-work cycle advantages those that take part in it, as continued demand drives house costs even greater. When you 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 better revenue down the street.
However when 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 reside, or residing to work? As a result of when you’re not cautious, life-style 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 house and standing retains them trapped in a piece cycle for much longer than needed? Do you assume the live-to-work mentality is again? How can we encourage individuals to cease following the herd and contemplate various existence?
For brand spanking 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 beneficial—freedom.
Let Professionals Make investments In Actual Property For You
Put money into actual property with out the burden of a mortgage, tenants, or upkeep with Fundrise. With virtually $3 billion in belongings beneath administration and 350,000+ buyers, Fundrise focuses on residential and industrial actual property. Throughout instances of turmoil, actual property tends to outperform.
When you don’t wish to reside to work without end, it’s essential to save aggressively and make investments properly. Actual property is my favourite asset class for constructing wealth due to its utility, revenue potential, and relative stability. The highly effective mixture of rental revenue and property appreciation makes it among the best methods for the typical particular person to develop wealth over time.
I’ve personally invested $300,000 with Fundrise to generate extra passive revenue. The funding minimal is barely $10, so it is simple for anyone to dollar-cost common in and construct publicity. Fundrise is a long-time sponsor of FS.
Change Your Life For The Higher
If you wish to construct extra wealth than 93% of People, order a replica of my new e-book, Millionaire Milestones: Easy Steps to Seven Figures. With over 30 years of finance expertise, I will show you how to obtain monetary freedom sooner, so you possibly can break away and do extra of what you really need!
Pay attention and subscribe to The Monetary Samurai podcast on Apple or Spotify. I interview consultants of their respective fields and talk about a few of the most attention-grabbing matters on this web site. Your shares, scores, and critiques are appreciated.
To expedite your journey to monetary freedom, be part of over 60,000 others and subscribe to the free Monetary Samurai publication. Monetary Samurai is among the many largest independently-owned private finance web sites, established in 2009. The whole lot is written primarily based on firsthand expertise and experience as a result of cash is just too necessary to be left as much as change. We have got one life, let’s get our cash proper the primary time.
