Since 2009, I’ve been writing in regards to the significance of working to stay—accumulating wealth to obtain monetary independence and freedom. However regardless of years of advocating for this way of life, I’ve come to appreciate 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!
“Stay to work” describes a mindset the place an individual’s life revolves primarily round their profession or job. Individuals who “stay 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 “dwelling to work” once you first graduate from faculty. Constructing a profession and establishing monetary safety typically require dedication and lengthy hours. Nonetheless, there comes some extent when we have to resolve what actually 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 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 had been speeding via Venice, Italy when an older couple stopped us and stated, “Take it sluggish 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 had been proper. We had been speed-walking via the 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 guide 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. 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.
Finally, 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 spite of everything, I wrote the submit Why Early Retirement/FIRE Is Changing into Out of date, which argued that elevated office flexibility had diminished the urgency to retire early. If I solely had to enter the workplace 2-3 days every week, I seemingly 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 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 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 dwelling to work—are literally doubling down on work submit 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 Stay-to-Work Is Again And Stronger Than Ever
Top-of-the-line 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 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 dwelling costs simply by transferring 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 maintaining 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 aspect. They bought for greater than the properties out there with ocean views. I had toured each properties extensively and estimated their remaining 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 because of the development of synthetic intelligence. I’m particularly optimistic in regards to the metropolis’s west aspect, pushed by new colleges, property developments, and the $4 billion UCSF Parnassus medical heart rework, which can add over 1,400 new jobs.
I feel 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 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—much like its 2024 technique when it was listed on the similar value and finally bought for $3,125,000. Nonetheless, I doubted it could go $750,000 over asking once more. That could be a scary sum of money and share 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 practice, an eight-minute wait, a 15-minute trip, 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 below 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 development for the brand new 12 months, 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 practically as good as the primary dwelling. Actually, I might need to spend $100,000 – $200,000 reworking 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 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 principle bed room and a seven-minute stroll to the MUNI station as an alternative of 5. In a earlier submit, I discussed that proudly owning a house inside strolling distance of every little thing isn’t at all times superb resulting from noise and different disturbances. Being one block farther from the MUNI station, outlets, and eating places could have made this dwelling barely extra fascinating to patrons.
As soon as once more, actual property brokers confirmed that every one the patrons had been households prioritizing proximity to public transportation. Stay-to-work strikes once more! You would purchase a 300 sqft bigger, totally reworked dwelling with ocean views for 10% much less. Or you possibly 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 seek out extra reasonably priced properties a bit farther from work appears to be failing. And don’t be concerned, I’ve loads extra examples moreover these two that present how working to stay is again.
The Stay-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 every 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 larger. And as dwelling costs climb, extra individuals discover themselves working extra simply to afford them. Bear 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 private finance neighborhood’s finest efforts to encourage extra reasonably priced dwelling preparations. There’s merely an excessive amount of strain to earn extra and develop social standing.
Perhaps Excessive Revenue Households Battle On Goal
There are additionally individuals who willingly endure a 45-minute commute every method 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 an alternative of transferring nearer and chopping the drive right down to below 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 more durable simply to maintain an costly way of life. On prime of paying a premium to stay nearer to work, many households in huge cities need to ship their children to personal faculty, which may simply value between $20,000 and $70,000 per 12 months per youngster. Add on a automotive or two, holidays, superb 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 consider the advantages are price 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 $500,000/12 months 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 House?
When you’ve got 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 relatively save $1 million and stay a mile farther away on the MUNI line with a barely longer commute than be compelled to work many extra years simply to afford my dwelling.
Let’s run the numbers. Say you might have a $600,000 family earnings—the minimal I’d advocate for comfortably affording a $3 million dwelling (5X earnings, although ideally, it needs 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 earnings, or $60,000 a 12 months. That’s about 14% of your after-tax earnings of $420,000 (assuming a 30% efficient tax charge). With a 5% compound annual return, it would take you 12 years to avoid wasting $1 million. Holy moly!
Are you telling me you’d relatively work 12 extra years simply to stay barely nearer to work, relatively than purchase an analogous dwelling 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, superb. Perhaps a ten% gross financial savings charge is just 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 internet earnings). You might be studying Monetary Samurai, in any case.
Even then, selecting the $3 million dwelling over the $2 million choice means working 5 additional years—assuming a 5% annual return. And should you’re middle-aged, these 5 years are far more pricey than in your 20s. Once more, my reply is a tough no!
Should you don’t like these examples since you’re targeted on absolutely the greenback worth of the properties, 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 prior to now about how a huge 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 Stay-to-Work Mindset Perpetuates Itself
Whereas some maximize work flexibility, others are paying prime greenback to make sure they’ll maintain working. Mockingly, this live-to-work cycle advantages those that take part in it, as continued demand drives dwelling costs even larger. Should 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 may enhance the percentages of promoting your property for a larger revenue down the highway.
However should 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 stay, or dwelling to work? As a result of should you’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 dwelling and standing retains them trapped in a piece cycle for much longer than crucial? Do you suppose the live-to-work mentality is again? How can we encourage individuals to cease following the herd and contemplate 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. Finally, I made a decision to downsize to a smaller, extra reasonably priced dwelling as a result of I wished to stay 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
Spend money on actual property with out the burden of a mortgage, tenants, or upkeep with Fundrise. With nearly $3 billion in belongings below administration and 350,000+ buyers, Fundrise focuses on residential and industrial actual property. Throughout occasions of turmoil, actual property tends to outperform.
Should you don’t need to stay to work endlessly, you should save aggressively and make investments properly. Actual property is my favourite asset class for constructing wealth due to its utility, earnings potential, and relative stability. The highly effective mixture of rental earnings 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 earnings. The funding minimal is barely $10, so it is easy 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 Individuals, order a replica of my new guide, Millionaire Milestones: Easy Steps to Seven Figures. With over 30 years of finance expertise, I am going to make it easier to obtain monetary freedom sooner, so you’ll be able to break away and do extra of what you actually need!
Hear 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 fascinating matters on this website. Your shares, scores, and opinions are appreciated.
To expedite your journey to monetary freedom, be part of over 60,000 others and subscribe to the free Monetary Samurai e-newsletter. Monetary Samurai is among the many largest independently-owned private finance web sites, established in 2009. All the pieces is written based mostly on firsthand expertise and experience as a result of cash is just too vital to be left as much as change. We have one life, let’s get our cash proper the primary time.
