Dave Meyer, host of the BiggerPockets Podcast, has achieved what many consider the ultimate financial goal: financial independence before the age of 40. However, his journey to this milestone was anything but conventional. In a recent episode, Meyer challenges the traditional notions of financial independence, sharing his unique approach and why he believes the conventional wisdom may be misguided.
Meyer’s path to financial independence began over two decades ago, but it wasn’t marked by extreme frugality and delayed gratification. Instead, he focused on a balance between investing and enjoying life. He bought rental properties, worked hard at his job, and saved and invested most of his money. But he also spent generously on his wedding, took nice vacations, and ate out regularly. This balanced approach led him to financial freedom at 39, but it also taught him a crucial lesson: financial independence is a process, not a fixed number.
Challenging the Traditional Approach to Financial Independence
Meyer argues that the traditional approach to financial independence, which focuses on reaching a magical net worth number, is misguided. He believes that this concept is a myth and that financial independence is actually a moving target. There are several reasons for this, including inflation, lifestyle creep, and the arrival fallacy.
Inflation raises the bar every year, reducing spending power. Lifestyle creep, which occurs as people earn more and desire nicer things, also changes the financial independence target. Meyer defends the idea of reasonable lifestyle creep, arguing that it’s a reward for hard work and not a failure of discipline. He also challenges the arrival fallacy, the false belief that achieving a specific goal will bring lasting satisfaction. Meyer has found that hitting a financial goal doesn’t fulfill people or make their problems go away.
Loving the Process, Not Just the Goal
Meyer shares a personal story about his weight loss journey to illustrate the importance of loving the process, not just the goal. He set a goal to lose 50 pounds and eventually lost over 60. However, he didn’t stop exercising and eating healthily once he hit his goal. Instead, he continued these habits because he enjoyed them. Meyer encourages listeners to apply this mindset to their financial independence journey.
He advises listeners to find a way to invest in real estate that they enjoy and to focus on getting better every day. Financial independence is a spectrum, and Meyer encourages listeners to ask themselves if a real estate deal makes them more financially independent. He also emphasizes the importance of celebrating wins along the way and recognizing that the journey is not linear.
Balancing Wealth Building and Living Well
Meyer acknowledges that balancing wealth building and living well is a skill that requires ongoing calibration. He shares examples of times when he deliberately took his foot off the gas to enjoy life, such as going back to grad school and spending money on a wedding. He argues that these experiences were worth more than the real estate deals he could have made with the same money.
Meyer encourages listeners to celebrate their wins and recognize that financial independence is a lifelong journey. He believes that the goal should be a good life with a sense of control, not just a number. He hopes that his unconventional approach to financial independence will free listeners up to see that anything they’re doing to make themselves more financially independent is a success and a win.
