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Former Goldman Sachs analyst Sam Dogen — also known as the Financial Samurai online — decided to cash in on a huge chunk of his investments in 2023 to buy a “forever home” for his family (1).

But by selling his stocks and bonds, he lost about $150,000 a year in passive income.

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“My family and I could have been set for life. Instead, due to my inability to beat back real estate FOMO (fear of missing out), I blew up our passive income,” Dogen wrote in a blog post.

“Desire is the cause of all suffering,” he added, citing one of the Four Noble Truths of Buddhism.

So, what happened? And what can we learn from his story? Here’s a look at Dogen’s decision to buy his “forever home” — and how you can avoid falling into the same trap.

Dogen has been investing for a long time. In fact, he first made headlines back in 2012 for championing the “financial independence, retire early” (FIRE) movement by retiring at the age of 34 with a $3 million net worth.

However, that all changed in 2023. Dogen told Business Insider, “I bought an expensive home I didn’t need, becoming house-rich and cash-poor (2).”

After his real estate investment misstep, he decided to return to work — but that only lasted 4 months. At that point, he quit and decided not to look for another job.

“It’s too bad, because it could have been a perfect fit,” Dogen wrote. “The good thing about this is that I realized what I don’t want.”

Dogen said that was enough to save around $40,000 and help replenish his lost income. But he could have supplemented his income without returning to work.

Read More: I’m almost 50 years old and don’t have retirement savings. Is it too late?

The Financial Samurai has been buying real estate since 2003 and has rented out multiple homes along the way.

But owning property isn’t always the stress-free wealth builder many imagine. Rising bills, property taxes and tenant issues can quickly pile up. Even after climbing the property ladder with a home he bought in 2024, Dogen admitted something surprising — he wasn’t any happier (3).

When he sold his primary residence in the first quarter of 2025, the timing was tricky. Housing demand had surged over the past year, sparking bidding wars across residential markets (4).

His decision wasn’t driven by financial pressure. Instead, it came down to the headaches that often accompany being a property owner or landlord.

After all, even good tenants rarely treat a property with the same care as an owner. In Dogen’s case, the tenants — four roommates in their mid-20s — left dinged hallway walls and a damaged kitchen faucet that caused water damage.

Extreme weather didn’t help either. Dangerous winter storms in 2023 and 2024, along with Southern California wildfires, added another layer of stress to property ownership.

So, in light of these events, what advice can he offer to other Americans aspiring to be homeowners?

For those looking to buy a home, the Financial Samurai outlines his 30/30/3 rule for buying a home in one of his blog posts (3).

He recommends spending no more than 30% of your gross income on housing costs, then putting at least 20% down while maintaining a 10% savings buffer. He also recommends buying a home that costs no more than three times your household’s gross annual income.

But in today’s market, those guidelines can be tough to follow. Mortgage rates remain stubbornly above 6% (5), while the median home price hovered around $405,300 as of the fourth quarter of 2025 (6).

Many prospective buyers may find themselves priced out.

Still, real estate continues to be one of the most reliable ways to generate passive income. Even legendary investors like Warren Buffett — who has long favored stocks over properties — have acknowledged its income potential.

“[If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check, it’s very simple,” Buffett remarked during Berkshire Hathaway’s annual shareholders meeting in 2022 (7).

His reason? “The apartments are going to produce rent.”

Luckily, there are other ways in which you can invest in real estate and earn passive income without having to shell out your income on mortgages or worrying about late-night tenant calls.

Dogen could have earned passive income through real estate investing without buying a home outright.

For instance, with Arrived, investors like Dogen can tap into the market by investing in shares of vacation homes or rental properties.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property. No leaky faucets or dinged hallways here.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.

Once you’re an investor with Arrived, you’ll gain access to their newly launched quarterly secondary market, where investors can buy and sell shares of individual rental and vacation rental properties directly on the platform.

This allows you to buy into properties you may have missed at the initial offering or sell shares before a property reaches the end of its hold period.

Even better, for a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match

For those looking to invest beyond short-term vacation rentals, mogul might be worth a look.

Founded by former Goldman Sachs real estate investors, mogul hand-picks the top 1% of single-family rental homes nationwide for you.

Mogul’s team carefully vets each property, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Ultimately, it might be hard to believe that with a $3 million net worth, Dogen still felt the need to return to work and lock in supplemental income.

It raises the question: Did he simply fall victim to lifestyle creep?

While he did admit there were some areas he could have cut back on, it can be difficult to see the big picture when costs for non-essentials mount — as is the case for many high earners.

However, whether or not you’re a high earner like Dogen, there are steps that anybody can take if you’re worried about your finances. Achieving financial clarity starts with a frank assessment of your inputs and outputs.

Making sure you have the right budget to retire can be a hard task to tackle on your own, but an app like Monarch Money can help.

Monarch Money puts all your finances under one roof, from your banking statements to your investments. You can also add separate or joint accounts to your dashboard, which can be great for tracking grocery runs for couples or helping your child get used to big-picture financial planning as parents.

And the best part? Monarch Money offers a seven-day free trial so you can see if it’s right for you. If you like what you see, you could then snag 50% off your first year with code WISE50.

Beyond building out a budget, Dogen says, “People should be very calculated and aware if they decide to have children and if they want to achieve FIRE. It’s a really tough combination.”

Making that decision can be easier when you have a financial advisor to consult with.

But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That’s why finding reliable advisors is crucial.

That’s where Advisor.com can come in. The platform connects you with an expert near you for free.

Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.

Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.

Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation with no obligation to hire to see if they’re the right fit for you.

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Financial Samurai (1), (3), (4); Business Insider (2); CNBC (5), (7); Federal Reserve Bank of St. Louis (6)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.