The Myth of the "FI Number": Why Your Path to Financial Independence Needs a Radical Rethink

For decades, the gospel of the Financial Independence (FI) movement has been clear: calculate a "magic number," aggressively cut expenses, maximize your income, and sprint toward a finish line where your net worth finally grants you the freedom to stop working. It is a formula that has fueled blogs, podcasts, and entire subcultures of "effort-maxers."

But according to Dave Meyer, host of the BiggerPockets Podcast and a seasoned real estate investor, this conventional wisdom is not just flawed—it’s entirely wrong. After achieving financial independence before age 40, Meyer has come to a startling realization: the "FI number" is a mirage. In a recent candid discussion, he argued that the pursuit of a static financial target often results in the very thing it aims to avoid: a life of delayed fulfillment and missed opportunity.

The Core Thesis: Financial Independence as a Process, Not an Event

The traditional narrative of financial independence suggests that once an investor hits a specific, pre-determined net worth or passive income milestone, their problems will evaporate. They will reach a state of "F-U money," where they are forever liberated from the grind.

Meyer contends that this "arrival fallacy"—a term coined by psychologist Tal Ben-Shahar—is the greatest trap in personal finance. The fallacy suggests that we falsely believe achieving a specific goal will bring lasting satisfaction. In reality, the dopamine hit of hitting a milestone is fleeting. Once the goal is reached, the void that remains often leads to disillusionment.

"Everything you’ve been taught about financial independence is wrong," Meyer asserts. "There isn’t a financial freedom number; there’s a financial freedom process. If you don’t get the process right, it won’t be worth any of the effort."

A Chronology of a Shifting Perspective

To understand why Meyer rejects the standard model, one must look at his personal journey, which spans two decades of investing.

The Early Days: The Seed of Financial Security

Meyer’s motivation was rooted in early adversity. During the dot-com bust of the early 2000s, his father—a hardworking professional—lost his job shortly after the family navigated a divorce. This instability created a deep-seated drive in a young Meyer to gain control over his financial destiny. He didn’t want to be reliant solely on W-2 income.

The Real Estate Catalyst

Shortly after college, Meyer dove into real estate investing. Like most in the FI community, he set a target: $10,000 per month in passive cash flow. For years, he lived the "optimization" life: he resided in a friend’s grandmother’s basement for three years, drove a beat-up car with a bent frame, and lived paycheck to paycheck to fund his property acquisitions.

The Turning Point: The "Lifestyle Creep" Realization

As Meyer’s portfolio grew, he realized his initial target was no longer sufficient. He wanted a better home for his growing family, he wanted to travel, and he wanted to enjoy his prime years. Conventional FI wisdom would label this "lifestyle creep" and treat it as a failure of discipline. Meyer flips the script: he argues that reasonable lifestyle creep is not a failure—it is the reward for labor.

Supporting Data: Why the "FI Number" Fails

Meyer highlights three primary factors that make the "fixed number" approach obsolete for the modern investor.

1. The Inflationary Pressure

The economic reality of the 2020s has rendered many late-2010s retirement plans inadequate. Inflation continuously erodes purchasing power, meaning that a static number calculated five years ago likely provides less security today. Relying on a fixed target is essentially running a race where the finish line keeps moving further away.

2. The Fallacy of Disengaged Retirement

A common component of the FI movement is the desire to "retire early"—to stop working entirely. Meyer points to a glaring contradiction: the most successful, "financially free" individuals in the industry are still working. They are not sitting on beaches; they are writing, investing, consulting, and building. The human desire for purpose, challenge, and contribution persists regardless of net worth.

3. The Arrival Fallacy

As noted, human psychology is not designed to settle. Once a target is hit, the mind immediately resets. If the only meaning in an investor’s life is tied to the pursuit of a number, that meaning vanishes the moment the goal is achieved.

Reclaiming the Journey: A New Framework

If the destination is a moving target, how should an investor approach their finances? Meyer suggests a shift from "goal-oriented" to "process-oriented" living.

Embracing the Spectrum

Rather than asking, "Am I financially independent yet?" investors should ask, "How much more financially independent am I today than I was yesterday?" By viewing financial independence as a spectrum rather than a binary switch, the pressure to "max out" every effort vanishes. Every rental property acquired, every dollar saved, and every debt paid down is a step along the spectrum.

The "Fitness" Analogy

Meyer draws a parallel to his own fitness journey. He once set a goal to lose 50 pounds. He hit the goal, then lost 60. But he didn’t stop exercising or eating well once he hit the number. He had become the type of person who values health. He argues that investors should strive to become the type of person who enjoys making sound financial decisions. The process of building wealth should be intrinsically rewarding, not just a means to an end.

Implications for the Modern Investor

This philosophy carries significant implications for how individuals should structure their lives and portfolios.

1. Strategic Flexibility

Investors should not feel guilty for "taking their foot off the gas." Meyer cites his decision to skip a property acquisition to pay for graduate school as a pivotal, non-linear move that paid off in the long run. Similarly, spending money on a high-quality wedding or frequent travel is not a waste if it aligns with one’s values. These experiences are the "ROI" of the money earned.

2. Redefining "Success"

Success should be redefined as the ability to live life on one’s own terms while maintaining a sustainable, enjoyable process. If an investor is "effort-maxing" to the point of misery, they have missed the point of financial freedom. The goal is to gain control over time and choices, not to be a slave to a spreadsheet.

3. Celebration as a Tool

Because the journey is long, the importance of celebrating small wins cannot be overstated. Entrepreneurship and investing are often lonely, difficult paths. Recognizing progress—whether it’s a new cash-flowing unit or the ability to take a vacation—sustains the momentum needed to stay in the game for the long haul.

Conclusion: The Ultimate Goal is Agency

Dave Meyer’s critique of the financial independence movement is not an attack on the goal of wealth, but a call for a more sustainable, human-centric approach. By letting go of the obsession with a "magic number," investors can actually build more resilience.

When you learn to love the process, the volatility of the market, the inflation of the economy, and the changing demands of life become less daunting. You are no longer chasing a finish line that might not exist; you are building a life of agency. Ultimately, the most successful investors are those who learn that while the money provides the tools, the process provides the life.

As Meyer reminds his listeners: "If your outcome—your FI number—is the only source of your meaning, the meaning evaporates the moment you arrive. Instead, learn to love the process. That will give you more meaning than any number ever could."