I Reached Financial Independence Before 40 (Everything You Know is Wrong)

**Dave Meyer** (0:00)
Everything you've been taught about financial independence is wrong. I started pursuing financial independence two decades ago, but I didn't follow the usual path of effort maxing and extreme delayed gratification. But I hit every number I set out to achieve. So from the other side, I can tell you, there is a better way.
There are entire books and communities based on the idea that you have a magical net worth number, and if you reach it, you'll be set free from having to work. You'll have no problems and you can retire early. But I think that entire concept is misguided. So today, you are getting a rant. This is my approach to financial independence, how I bought the stuff I wanted, prioritize happiness and unique life experiences, and still achieve financial freedom faster than I ever expected. This is how you get the financial future you want while enjoying the life you have right now.
Hey, everyone, welcome to the Bigger Pockets Podcast. I'm Dave Meyer. Today on the show, we're gonna talk about, and frankly, I'm going to challenge one of the core beliefs of the real estate investing and financial independence communities. I have a bone to pick with the way financial independence is talked about and pursued, and I wanna share it with you. Don't get me wrong, I am all about financial independence. I've been pursuing it for a long time. But having pursued it for so long and having accomplished a lot, I see the faults in the approach that is taught, and frankly, I think I have a better framework to help you achieve the financial stability you want while still enjoying your life right now. Financial independence has been a really big part of my life for a long time. And if you're not familiar with this term, financial independence just means having the money to comfortably and confidently live life on your own terms. Basically, you have a little bit more of control and more say over how you spend your time and your money. And although I'm going to challenge some foundational assumptions about the financial independence movement today, I love the idea of financial independence, because who doesn't want to live life on their own terms? I think everyone does.
And my belief in the need for and the importance of financial independence has not changed. I just think the way people pursue it should change.
I started my financial freedom, I'd say at least 16 years ago, when I bought my first rental property. But really, I probably started more like 25 or so years ago when I was pretty young, because my dad, who's a smart, hardworking guy, he lost his job in the.com bust, and that came pretty quickly after my parents got divorced. And it just put our family in a tough financial spot. And that experience gave me a drive for most of my life to have more control over my financial well-being than my parents did, who relied solely on W-2 income. Right after college, I was already looking for ways to invest. I found real estate, and I did what everyone pursuing financial independence does. I came up with a PHI number, a Financial Independence Number, F-I. A PHI number is this concept in financial independence that is basically having enough money where you don't have to work or where you have complete control over your time. Some people would call this F-U money. Whatever you want to call it, most people in the financial independence community call it your PHI number, but it's an idea that you reach a certain net worth and then you are magically financially free. It makes sense in many ways, right? And I actually did it. I personally have always thought about it more in terms of income than net worth, but I still had a number in my head that I wanted to get to. I wanted $10,000 per month in passive cash flow, and I set my sights on that from the beginning of my working life. And it worked for a while until it didn't really work anymore. Eventually, I realized this idea of a Phi number or a magical net worth number is wrong. It's actually just kind of a myth. This idea that you hit some number, become free, your problems dissolve, it's not real. It wasn't real for me, and it hasn't been real for pretty much any other investor I know. And I talked to a lot of investors, and no one has had that experience. And here's why.
Financial independence is actually a moving target. The number that you need to get to, your sense of security, what you want out of life, it changes. And that's okay.