Why "Where to Live" is the Most Important Decision of Your Life

Where you live is a decision that echoes far beyond the walls of your home. It's a choice that shapes your opportunities, influences your social circles, and defines your lifestyle. It's a decision that can either propel you forward or hold you back in ways you might not immediately realize.

Naval Ravikant, the Silicon Valley entrepreneur and philosopher, often emphasizes the idea that environment is everything. He argues that "your surroundings influence your thoughts, your habits, your energy." If you place yourself in the right environment, with people who inspire you, in places that stimulate creativity and productivity, you’re giving yourself an unfair advantage in life.

In his podcast, Naval talks about how moving to Silicon Valley played a crucial role in his success. He didn’t just move there for the weather or the culture. He moved because "Silicon Valley has this magnetism." It attracts the best people, the best ideas, and the highest concentration of resources that allow you to amplify your efforts. Naval’s decision to live in Silicon Valley wasn’t just about a physical place—it was a strategic decision about positioning himself in the right ecosystem to succeed.

This idea is echoed by Paul Graham, co-founder of Y Combinator, who has written extensively about the role of location in entrepreneurship. In his essay “How to Be Silicon Valley,” he discusses how successful people often cluster in places where innovation is not just a possibility, but an expectation. The proximity to top talent, investors, and mentors makes the environment itself a powerful asset. As he puts it, “Living in a place where there’s a high concentration of ambitious people gives you a subtle, almost unconscious sense of what’s possible."

Think about it—when you’re surrounded by individuals who are working on extraordinary things, it subtly pushes you to do the same. You internalize the high standards of success, and it becomes natural to strive for that level of excellence. But if you’re in an environment that doesn’t foster that kind of ambition, it’s easy to lose sight of your potential.

This isn’t to say that success is guaranteed in any particular location, but your environment plays a huge role. The places you choose to spend your time will influence the ideas you’re exposed to, the people you meet, and the opportunities you come across.

Take Elon Musk as another example. His early decision to live in California helped him not just build a network but also participate in the rise of the tech ecosystem that gave birth to companies like Tesla and SpaceX. The proximity to cutting-edge innovation and capital played a massive role in his ability to scale his ventures.

There are also stories of people who decided to live in places that were intentionally unconventional or isolated—people like Tim Ferriss, who found a sort of productivity nirvana in the quieter parts of the world, using their environment to shape a different kind of lifestyle. It wasn't the buzz of a startup hub that drove him; it was the quiet, disciplined focus of a deliberate environment.

My Story: Moving to Toronto

As someone who has lived through the highs and lows of entrepreneurship, I can personally relate to the struggle of choosing the right place to live. After years of building startups and working in tech in Iran, I decided to move to Toronto—a city that offered a wealth of opportunities, a thriving tech ecosystem, and a community of like-minded individuals.

For me, this move was about positioning myself for greater success in the global market. Toronto is not only a major tech hub in North America, but it also provides an environment where innovation and diversity converge. The exposure to new ideas, the availability of talent, and the proximity to investors and partners have all contributed to my growth. But the decision to make this move was not easy.

For people in developing countries, the choice of where to live is often fraught with challenges. Moving to a place that offers better opportunities is a dream for many, but it’s not always practical. The financial burden of relocation, the uncertainty of visas, the cultural adjustment, and the overwhelming decision of whether it will truly lead to a better future are all obstacles people face.

Many entrepreneurs and professionals from developing countries are forced to consider not just the quality of life, but the fundamental question: Can this move really help advance my career? In countries where the job market may be limited or economic opportunities are scarce, choosing to leave often means betting everything on an unknown future. The sacrifices are high—leaving behind family, friends, and the familiarity of home.

This is why where you live is so crucial. The right environment can elevate your potential, but making that move, especially when you're from a developing country, can feel like taking a leap of faith. The global nature of work today, however, offers hope that remote opportunities or tech-driven ecosystems can allow people to break free from geographic limitations.

Why Your Environment Matters

Ultimately, where you live is not just a matter of convenience or personal preference. It's about positioning yourself in an environment that supports the life you want to build.

Some questions to ask yourself:

  • Does my current environment challenge me to grow?
  • Are the people I interact with daily on a similar trajectory to mine?
  • What is the energy of my city or neighborhood?
  • Am I putting myself in a position to thrive or simply survive?

By choosing your environment wisely, you’re not just choosing where to sleep at night. You’re choosing the potential of your day-to-day life. And as Naval often says, “You are the average of the five people you spend the most time with.” Your environment will shape who you become.

So, the next time you're thinking about your future, consider: Where are you living now, and where should you be living to maximize your potential? The right location can change everything.