A Smarter Way to Build Wealth
If you’ve been following along with CakeClub™ this year, you’ve already made great progress. You’ve learned how to define the lifestyle you want, overcome obstacles, and Master Your Cash Flow®. But now, it’s time to take things to the next level with The Wealth Building Formula™.
This proven framework, introduced by Al Zdenek in Master Your Cash Flow®, is the ultimate financial blueprint for achieving your goals. It’s not about vague aspirations like “saving more” or “investing better.” It’s about creating a clear, personalized equation that shows you exactly how much wealth you need, how long it will take to get there, and what steps you need to take to make it happen.
The best part? The formula isn’t just about the future—it empowers you to make smarter financial choices today so you can enjoy life now while building a secure foundation for tomorrow.
What Is The Wealth Building Formula™?
At its core, The Wealth Building Formula™ is a simple equation that helps you answer the most important financial question: What do I need to do to achieve financial independence?
Here’s the formula:
C x T x % Return = $$$
Let’s break it down:
- C (Investable Cash): The wealth you’ve accumulated and have to save annually.
- T (Time): The time frame in which you want to achieve financial independence.
- % Return: The long-term investment return you need to grow your wealth.
- $$$: The wealth you need to generate the annual cash flow you need to achieve and retain financial independence..
By understanding how these variables interact, you can create a financial plan that’s both realistic and actionable. Better yet, the formula gives you the clarity to see how every financial choice you make impacts your ability to reach your goals.
Why Does It Matter?
Most people don’t have a clear picture of what financial independence actually looks like. They save and invest without knowing:
- How much wealth they need to generate the cash flow they want.
- How long it will take to get there.
- What rate of return they need from their investments to make it all work.
- If they saved more or less, how does that affect their financial plan goals.
Without these benchmarks, it’s easy to feel stuck, anxious, or overwhelmed. That’s where The Wealth Building Formula™ comes in. It removes the guesswork and is your a roadmap to financial freedom—one that’s tailored to your unique goals, lifestyle, and resources.
A Real-World Example: How the Formula Works
Let’s say Alex, a 35-year-old marketing professional, wants to retire by age 60. Alex estimates that they’ll need $100,000 per year to live the lifestyle they want in retirement. Adjusting for inflation, that means Alex will need about $150,000/year by the time they retire.
Using The Wealth Building Formula®, here’s how Alex calculates their target:
- Determine the Cash Flow (C): Alex needs $150,000/year. To generate that cash flow, they’ll need about $3.75 million in investments by age 60 (assuming a 4% withdrawal rate).
- Set the Time Frame (T): Alex has 25 years to grow their wealth.
- Calculate the % Return: To reach $3.75 million in 25 years, Alex needs to save $30,000/year and earn an average 7% return on their investments.
Armed with this information, Alex now knows exactly what they need to do:
- Save $30,000/year.
- Invest in a portfolio that targets a 7% return.
- Stick to their plan for the next 25 years.
Why Every Decision Matters
One of the most powerful aspects of The Wealth Building Formula™ is that it helps you see how every financial choice impacts your timeline, goals, and risk.
For example:
- Saving More: If Alex saves $40,000/year instead of $30,000, he could retire by age 55 instead of 60.
- Earning Less: If Alex earns only 5% instead of 7%, they’ll need to save more each year or push back their retirement date.
- Spending More: If Alex decides they’ll need $200,000/year in retirement instead of $150,000, they’ll need to save significantly more to reach their goal.
By making informed decisions, Alex can adjust their plan as life changes while staying on track for financial independence.
How CakeClub™ Helps You Work Your Formula
At CakeClub™, we believe that financial freedom isn’t a one-size-fits-all journey. That’s why our app is designed to help you:
- Calculate Your Formula: Input your goals, time frame, and current wealth to create a personalized Wealth Building Formula®.
- Track Your Progress: Monitor your savings, investments, and cash flow to see if you’re on track.
- Make Smarter Choices: Use our tools to explore how different decisions—like saving more, investing differently, or adjusting your timeline—impact your goals.
- Find more cash flow to save to get you to financial independence sooner!
Think of CakeClub™ as your financial co-pilot, helping you navigate the complexities of wealth building with confidence and ease.
Your Challenge for This Week
This week, take 10 minutes to start building your own Wealth Building Formula®. Here’s how to get started:
- Define Your Goals: What kind of lifestyle do you want now and in the future? How much annual cash flow will you need to support it?
- Set Your Time Frame: When do you want to achieve financial independence?
- Run the Numbers: Use the on-line retirement calculator at www.CakeClubapp.com and input the components of your formula (C x T x % Return) to calculate how much wealth you’ll need and what steps you can take to get there.
If you’re not sure where to start, download the CakeClub™ app for step-by-step guidance.
Let’s Build Your Wealth Together
“Ready to take control of your financial future? Download the CakeClub™ app today and start building your personalized Wealth Building Formula®. Because when it comes to your finances, you deserve to have your cake—and eat it too.”
The Foundation for Financial Freedom
The Wealth Building Formula™ isn’t just a financial tool—it’s your roadmap to financial freedom. It gives you the clarity, confidence, and control to make smarter decisions and build the life you want, one step at a time.
Over the next few weeks, we’ll dive deeper into how to work your formula, make better financial choices, and maximize your results. By the end of the month, you’ll have everything you need to take your wealth building to the next level.
So, let’s get started—because your financial freedom begins today.