Since 2009, I’ve been writing in regards to the significance of working to stay—accumulating wealth to obtain monetary independence and freedom ASAP. 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 proof that live-to-work is again and stronger than ever!
“Stay to work” describes a mindset the place an individual’s life revolves primarily round their profession or job. Individuals who “stay to work” usually 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 “dwelling 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 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 Stay
A few years earlier than retiring from finance in 2012, my spouse and I have been speeding via 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 have been proper. We have been speed-walking via 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 an exquisite feeling—not having to endure rush-hour visitors simply to take a seat 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.
Eventually, I might 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 larger standing. Looking back, it was bizarre to let go at 34, however I do not remorse it at 47 right now.
Work-to-Stay (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 put up Why Early Retirement/FIRE Is Turning 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 consider 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 severe professionals—those dwelling to work—are literally doubling down on work put up 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 Stay-to-Work Is Again And Stronger Than Ever
The most effective 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 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 transferring 3–5 miles west. Through the pandemic, 1000’s relocated to completely totally 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 faculty district in your youngsters.
However what shocked me just 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 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 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 middle rework, which can add over 1,400 new jobs.
I feel these two houses are nice—I’m simply stunned 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: XX Madrone Avenue, San Francisco, CA
This totally reworked 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 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—much like its 2024 technique when it was listed on the similar worth and finally offered for $3,125,000. Nevertheless, I doubted it might go $750,000 over asking once more. That could be a scary sum of money and share to overbid.
I used to be improper. The house offered for $3,435,000—10% increased than its 2024 worth, and $393,799 over Redfin’s estimate.
Why I Had My Doubts It Would Seel For So A lot
The house’s largest promoting level, based on 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? Appears like torture. 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 readers of Monetary Samurai are.
Instance #2: XXX Forest Facet Avenue, 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 house, 2,230 sqft (600 sq. ft 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 luxurious as the primary house. In truth, I’d need to spend $100,000 – $200,000 reworking 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 improper. 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 a substitute of 5. In a earlier put up, I discussed that proudly owning a house inside strolling distance of all the things isn’t at all times best attributable to noise and different disturbances. Being one block farther from the MUNI station, retailers, and eating places could have made this house barely extra fascinating to consumers.
As soon as once more, actual property brokers confirmed that each one the consumers have been households prioritizing proximity to public transportation. Stay-to-work strikes once more! You could possibly purchase a 300 sqft bigger, totally reworked house with ocean views for 10% 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 be concerned, I’ve a lot extra examples moreover these two that present how working to stay is again.
The Stay-to-Work Cycle Will Drive Dwelling Costs Larger
I’m not saying these homebuyers are obsessive about work—many merely must be within the workplace day by day. Their areas 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 places of work and public transportation, driving costs increased. And as house costs climb, extra individuals discover themselves working extra simply to afford them. Bear in mind, increased house 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 neighborhood’s greatest efforts to encourage extra reasonably priced dwelling preparations. There’s merely an excessive amount of strain to earn extra and develop social standing.
Possibly Excessive Revenue Households Wrestle On Function
There are additionally individuals who willingly endure a 45-minute commute every means 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 transferring nearer and reducing 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 way of life. On prime of paying a premium to stay nearer to work, many households in massive cities need to ship their youngsters to non-public faculty, which may simply value between $20,000 and $70,000 per 12 months per baby. Add on a automobile or two, holidays, high quality 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 consider the advantages are value it. In different phrases, there is not 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 examine exhibiting how a $500,000/12 months 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 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 probably $100,000 per 12 months if invested at a ten% return. Personally, I’d a lot reasonably save $1 million and stay half 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’ve gotten a $600,000 family earnings—the minimal I’d suggest for comfortably affording a $3 million house (5X earnings, although ideally, it needs 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 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 is going to take you 12 years to save lots of $1 million. Holy moly!
Are you telling me you’d reasonably work 12 extra years simply to stay barely nearer to work, reasonably than purchase an analogous house a bit farther away for much less and not must 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’re studying Monetary Samurai, in any case.
Even then, selecting the $3 million house over the $2 million choice means working 5 further years—assuming a 5% annual return. And should 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’re targeted on absolutely the greenback worth of houses, attempt 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 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 maths please.
The Stay-to-Work Mindset Perpetuates Itself
Whereas some maximize work flexibility, others are paying prime greenback to make sure they will hold working. Satirically, this live-to-work cycle advantages those that take part in it, as continued demand drives house costs even increased. If you happen to purchase into this mindset, the very best factor you are able to do is encourage others to do the identical—as a result of that can improve the percentages of promoting your property for an enormous revenue down the street.
However should you’re nonetheless within the wealth accumulation part or are depressing, take a step again and ask your self: Are you working to stay, or dwelling to work? As a result of should you’re not cautious, way of life 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 understand how the pursuit of a flowery house and standing retains them trapped in a piece cycle for a lot longer than obligatory? Do you assume the live-to-work mentality is again? How can we encourage individuals to cease following the herd and think about different existence?
For brand spanking 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 more durable to afford my payments. Ultimately, I made a decision to downsize to a smaller, extra reasonably priced house as a result of I wished to stay extra. Though I misplaced status, standing, and cash, I gained one thing way more beneficial—freedom.
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Change Your Life For The Higher
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