The Roadblocks to Financial Freedom: Why Most People Struggle (and How to Bulldoze Through Them

Welcome Back to CakeClub™! Let’s Build on What We Started

If you’ve been following along, welcome back to CakeClub™! And if you’re just joining us for the first time—no worries, we’re glad you’re here! We’ve got plenty of cake (metaphorically speaking) to go around.

Last month, we kicked off your journey to financial freedom by diving into the first chapter of Al Zdenek’s book, Master Your Cash Flow®. We introduced the CakeClub™ philosophy: financial freedom isn’t about sacrifice or stress—it’s about creating a plan that lets you enjoy life now while building a secure future. We explored how making better financial choices can transform your life and set the stage for an amazing 2025.

If you missed previous posts, here’s your chance to catch up! We set the foundation for mastering your cash flow: defining the life you want, creating a financial plan, and taking small, actionable steps toward your goals. Don’t worry—you can still go back and read those blogs—or better yet, download the CakeClub™ app to get started right away.

Now that we’ve got the basics covered, it’s time to dive into Chapter 2: The Obstacles.

As Arnold Palmer said, “The road to success is always under construction.” And when it comes to financial freedom, there are plenty of potholes, detours, and roadblocks that can slow you down. But here’s the good news: those obstacles aren’t permanent. With the right mindset, tools, and a little CakeClub™ magic, you can bulldoze through them and start making better financial choices today.

So grab a slice of cake (or coffee), and let’s break down why most people struggle with their finances—and how to overcome the first major obstacle: not having specific financial goals in dollar terms.

Obstacle #1: No Specific Goals in Dollar Terms (A.K.A. “I Want It, But I Don’t Know What It Costs”)

Let’s start with a question: What does financial freedom look like to you?

For some, it might mean keeping student loan payments manageable while growing wealth for the future. For others, it might mean saving for a dream vacation, buying a home, or starting a business. Whatever your dream is, here’s the reality: if you don’t know what it costs, you’re just guessing.

This is one of the biggest practical obstacles people face: vague goals. Most people have an idea of what they want (like a vacation home or financial independence), but they rarely attach specific dollar amounts or timelines to those goals.

Here’s why this is a problem:

• Without specific numbers, you don’t know how much to save—or how long it will take to get there.
• Vague goals don’t give you direction, which makes it easy to lose focus or give up entirely.
• Most importantly, you can’t measure your progress if you don’t know what you’re working toward.

‍A Slice of Real Life: A Smarter Way to Handle Student Loans

‍Imagine this: You’re a 25-year-old professional with $20,000 in student loans. You’re earning a decent salary, and your goal is to “pay off debt and start saving for the future.”Sounds great, right? But let’s think through this more strategically. Instead of rushing to pay off the loan entirely, what if you kept your monthly payments manageable—say, $100/month under an “income-driven repayment plan” not sure what type of plan this is, but I calculated that 6% interest on student loans would be $1,200 per year or $100 per month, enough to keep paying interest and maybe a little principal if the rates are less than 6%—and redirected any extra cash into a 401(k) or investment account? Here’s how it could work:

• You invest $300/month into a 401(k) or similar account earning an average 8% annual return (a reasonable assumption for long-term investment growth).
• Over the next 10 years (2025–2035), that $300/month could grow to about $55,250, thanks to the power of compound interest.
• Most employers match your contributions to the 401(k).  If you got a 100% match, another $300 per month, your balance could grow to double the $55,250 or $110,500.
• Since you will receive tax savings by contributing to a 401(k), your account could grow another $13,800 to $124,300.

Here’s the math:

• Each year, you contribute $8,100 ($675 x 12 months).
  
  • You divert $300 per month of the student loan to your 401(k).
  • The Employer match adds another $300 per month.
  • Assume a 25% tax savings on the contribution or $75.
  • These add up to $675 added to your 401(k) each month.
• With an 8% annual return, your money grows exponentially as follows:
  
  • Year 1: $8,100 grows to $8,460.
  • Year 2: Add $8,100 for a total of $16,200, which grows to $17,622.
  • By Year 10: Your total contributions of $81,000 have grown to $124,312.
  • By Year 20, you could have $400,239
  • By Year 30, you could have $1,012,700!  

How you pay off your student loan of $20,000 could be a million dollar decision!

• So, you created $124,312 of wealth over 10 years  
  
  • Without working one hour longer  
    
    • With what we call just “shuffling paper” or doing some paperwork and diverting the money to where it works the most for you.
  • You are closer to financial freedom.
  • You have a source of cash in the event of an emergency (safety)
  • Of course, you may still have the loan of $20,000 (or most of it), but you now have fives times the loan in wealth.
    
    • If you paid off the loan totally at this point, you have over $100,000 left!

 Compare that to paying off the $20,000 loan early:

• If you used the extra $300/month to pay off the loan faster, it might save you some interest, but
  
  • You would not have received the employer match
  • You would not have saved income taxes
  • You will not have emergency funds (not safer)
  • You could argue that once the loan is paid off, you could now save in your 401(k), but really, when was the last time you saved a loan payment once the loan was paid off.
    
    • It disappears into your monthly spending once the loan is paid off, your money stops working for you.
  • You have to work longer to get to financial independence.

By keeping your loan payments low, maybe just covering interest, and investing the extra cash flow, you:

• Have more wealth
  
  •  Pay less income taxes
• Work less in life
• Are safer while building wealth
• Get to financial independence quicker

That’s how you make your money work smarter—not harder—for you.

Suddenly, your goal shifts from “Pay off $20,000 in loans by 2030” to something much more exciting: “Grow my investment account to over $1 million by 2055 while staying on track with my loan payments.”

‍Why Specific Financial Goals Matter

‍Setting specific goals isn’t just about numbers. It’s about:

1. Clarity: Knowing exactly what you’re working toward keeps you focused and motivated.
2. Accountability: Specific goals help you track progress and make adjustments along the way.
3. Momentum: Breaking big goals into smaller, actionable steps makes the process less overwhelming—and way more satisfying.

As Al Zdenek explains in Master Your Cash Flow, this is the first step to overcoming financial obstacles: get clear on what you want and what it costs. Without this foundation, it’s impossible to create a financial plan that works.How to Set Specific Goals in Dollar Terms (It’s Easier Than You Think)Ready to turn your dreams into actionable goals? Here’s how to get started:

1. Dream Big (and Small): Think about what you want to achieve in the short term (1-5 years) and long term (5+ years). For example:
   
   • Short-term: Save $5,000 for a trip to Europe by 2027.
   • Long-term: Grow my 401(k) to $50,000 by 2035.
2. Do the Math: Research the costs associated with your goals. For a vacation, factor in flights, hotels, and spending money. For investments, calculate how much you need to contribute monthly to hit your target.
3. Set a Timeline: Decide when you want to achieve each goal and work backward to figure out how much you need to save or invest each month.
4. Write It Down: Studies show you’re 42% more likely to achieve your goals if you write them down. Use a journal, spreadsheet, or (better yet) the CakeClub™ app.
5. Track Your Progress: Regularly review your goals to see if you’re on track. Adjust as needed based on changes in your income, expenses, or priorities.

‍How CakeClub™ Can Help You Set and Achieve Your GoalsAt CakeClub™, we know that setting financial goals can feel overwhelming—like trying to bake a soufflé without a recipe. That’s why we created an app that makes the process simple, intuitive, and (dare we say) enjoyable.

Here’s how CakeClub™ can help:

• Set Your Goals: Input your goals into the app and attach specific dollar amounts and timelines.
• Track Your Progress: Stay on top of your goals with real-time updates and personalized insights.
• Stay Motivated: Celebrate small wins along the way, because progress deserves to be celebrated.

With CakeClub™, you’ll have everything you need to turn your financial dreams into reality.Actionable Takeaway: Your Challenge for This WeekThis week, take 10 minutes to write down one specific financial goal in dollar terms. Be as detailed as possible. For example:

• Instead of “Save for a vacation,” write: “Save $5,000 for a trip to Italy by 2027.”
• Instead of “Pay off debt,” write: “Invest $200/month to grow my portfolio to $34,400 by 2035 while staying on track with my student loans.”

Once you’ve written it down, input it into the CakeClub™ app. Let us help you turn that goal into a reality.

Let’s Build This Plan Together

‍“The first step to financial freedom is setting clear, specific goals. Download the CakeClub™ app today and start building the life you want. Because life’s too short to stress about money