Do You Live to Work or Work to Live?
If you’re working month after month without saving anything or building anything of value, it might be time to ask yourself: are you working to live, or living to work?
You might be earning a steady paycheck, but if you’re spinning your wheels—covering bills with nothing left to show for it—you’re not getting ahead. You’re just staying afloat.
Have you ever met someone in their 40s only to discover they have nothing saved for retirement? They’ve worked for the last 20 years, earned close to a million dollars—yet have nothing to show for it. Where did the money go? How could they have saved nothing after all that effort?
Let’s take a deeper look at what it means to retain value, why it matters, and how you can shift your mindset from pure consumption to long-term wealth building.
What Does “Retaining Value” Actually Mean?
Retained value is what remains from your spending. It’s the portion of your income that turns into something lasting—equity, assets, or future earning power.
Not all spending is wasteful. Some purchases can be viewed as investments, meaning they hold or even grow in value. Other purchases, while enjoyable, offer no long-term benefit after the money is gone.
Think of it this way:
Spending that retains value = wealth building
Spending that doesn’t = consumption
Breaking Down Spending Categories
Let’s look at a few common types of spending and how much value they retain:
| Category | Retained Value |
|---|---|
| Mortgage payment | High (builds equity) |
| Rent | None |
| Eating out | None |
| Clothes | Low |
| Furniture | Low to medium |
| Car (new) | Low (rapid depreciation) |
| Car (used) | Medium (slower depreciation) |
| Home improvements | Medium to high (varies) |
| Education/Certifications | Medium to high (future earnings) |
| Experiences (vacations, entertainment) | None |
Example: If you're left with $500 after expenses and your mortgage payment built $300 of equity, your true retained value that month is $800—not just the leftover $500.
How Long Would It Take to Become a Millionaire?
Let’s say you make $30,000 a year after taxes. If you could somehow retain 100% of that (no bills, no spending), you’d hit a million dollars in about 34 years. But realistically, most people retain far less—often none at all.
The goal isn’t necessarily to save every penny, but to maximize the percentage of your income that builds wealth, either through savings, investments, or asset ownership.
Experiences: Fun, But Fleeting
I love eating out. I love vacations. These things are meaningful and fulfilling—but from a financial standpoint, they retain zero value.
That doesn’t mean they’re bad. It just means they’re consumption, not investment. You trade money for a moment, and when it’s gone, it’s gone.
Contrast that with a vacation home, which is still an experience—but one where most of your money is retained (and could even appreciate in value over time).
Being “House Poor” Still Builds Wealth
Being house poor—when your housing costs are more than 30–35% of your income—is not ideal. But even in this state, you’re still building something. Owning a home gives you two wealth-building benefits:
- You build equity as you pay down your mortgage.
- Your home may appreciate, increasing in market value over time.
If your $400,000 home appreciates to $500,000, that $100,000 gain is yours—even if the bank technically owns most of the house. You get 100% of the upside, not the bank.
Yes, it’s possible for a house to lose value, like during the 2008 crash. But historically, real estate trends upward over time, especially if you buy in a good location and maintain your property.
Retaining Value Through Home Improvements
Real estate isn’t just about the house—it’s about everything around and inside it. Landscaping, renovations, and upgrades can all retain (and sometimes grow) your investment.
Here’s a quick look at renovation projects and their average return on investment (ROI):
| Renovation Project | Estimated ROI (%) |
|---|---|
| Garage Door Replacement | 90–100% |
| Manufactured Stone Veneer | 90–95% |
| Entry Door Replacement (Steel) | 80–90% |
| Minor Kitchen Remodel | 70–80% |
| Bathroom Remodel (Midrange) | 60–70% |
| Roof Replacement | 50–60% |
| Swimming Pool Installation | 30–50% |
Rule of thumb: The more universally appealing and practical the improvement, the more value it retains.
Track How Much You Retain Each Month
Here’s a practical tip: At the end of each month, look at your spending and ask, How much of this will still benefit me in 5 years?
If you earn $3,000 and spend all of it, how much are you retaining?
- If $500 goes into savings or paying down a mortgage = $500 retained value
- If $1,500 is rent and groceries = $0 retained value
- If $500 is on experiences or dining out = $0 retained value
- If $500 is on a used couch = maybe $150 retained value
By tracking this over time, you’ll start to see patterns—and areas where you can retain more and consume less.
Final Thoughts: Work to Build, Not Just to Consume
You don’t have to give up every pleasure or experience in life, but understanding which expenses retain value—and which don’t—can help shift your mindset from short-term satisfaction to long-term growth.
When you start treating your income as a tool for building, not just spending, everything changes.
So ask yourself: Are you working just to keep working? Or are you working to eventually stop?
Because if your paycheck comes in and goes out with nothing to show for it—you’re not building wealth, you’re just renting your life.
If you found this helpful and would like help budgeting or investing please email me at BudgettoWealthTM@Gmail.com
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