7 Barriers Keeping You From Financial Freedom (and How to Break Through Them)

In This Article

What’s the point of earning a high income—or running a successful business—if your hard work doesn’t lead to freedom?

For many of us, financial independence feels like an uphill climb. You’re managing a career, family, and life’s curveballs, all while trying to figure out how to make your money work harder for you. And the truth? Even high earners can feel stuck—unsure if they’re making the right moves or if they’ll ever reach their goals.

The good news? Financial freedom isn’t about working harder; it’s about breaking through the common barriers that hold us back.

Let’s explore the seven biggest obstacles to building wealth—and how to overcome them with confidence.

1. Spending Without a Purpose

You’d think high earners and business owners would have spending under control, right? Not always. It’s easy to let expenses creep up to match your income—especially when you’ve “earned” that extra splurge.

But here’s the thing: Spending without a clear purpose is the fastest way to stall your financial freedom.

The fix

Skip the word “budget” (it’s overrated). Instead, use advanced tools to align your spending with your values and goals. Every dollar should either contribute to your freedom or reflect what’s most important to you.

Personal story

One client always made sure her family had what they needed—but found herself saying yes to expenses that didn’t align with her goals. When we did a spending audit, she realized redirecting $1,200/month into investments would let her hit financial independence five years earlier. Now, her financial plan reflects her values and sets her family up for long-term success.

2. Lacking a Financial Moat

Most advice says to keep a three-to-six-month emergency fund. But a high-income professional or business owner needs more than a rainy-day fund: You need a financial moat.

The fix

Think of your moat as twofold:

1. A reserve to protect against unexpected downturns (business or personal).
2. A “war chest” for seizing investment opportunities when they arise.

For me, this includes cash savings, an infinite banking policy, and a home equity line of credit (HELOC). It’s about playing both defense and offense.

Personal story

During one market dip, my war chest let me grab a buy-and-hold deal that’s now cash flowing consistently. Without it? That opportunity would’ve slipped by faster than my dog chasing the mailman.

3. Ignoring Credit Health

If you think credit scores are only for first-time homebuyers, think again. Your credit health is a wealth-building tool—whether you’re funding your next deal or snagging better terms on a business loan.

The fix

Make monitoring your credit part of your routine. Apps like Credit Karma or Mint can help you stay on top of it. 

A pro tip: Don’t just aim for “good credit.” Aim for excellent. Those few extra points can make a big difference when the next deal rolls around.

Personal story

One investor I worked with almost lost out on a multifamily property because of a forgotten outstanding $250 medical bill on their credit score. We caught it in time, but it was a reminder: Treat your credit like the asset it is.

4. Fear of Leverage

Debt has a bad reputation, but not all debt is bad. High-interest credit card debt? Sure, get rid of it. But leveraging low-cost, investment-backed debt? That’s how wealth is built.

The fix

Shift your mindset. Pay down high-interest debt, but don’t be afraid to use leverage for smart investments, like buy-and-hold real estate.

Personal story

One of my clients was nervous about refinancing her home to fund a passive real estate deal. When we ran the numbers, it was clear the investment would more than cover the loan and create cash flow she could rely on. She’s using that extra income to grow her portfolio even further today.

5. Hidden Fees

You might think your investments are growing, but hidden fees—such as advisory costs, expense ratios, and transaction fees—could quietly be draining thousands from your returns every year.

The fix

Always evaluate investments based on net returns, not gross numbers. If the fee structure isn’t transparent or feels like a puzzle? Walk away.

Personal story

I almost jumped into a promising syndication deal until I noticed the operator buried a laundry list of fees in the fine print. Transparency matters—if it’s not there, it’s not worth your time (or money).

6. Chasing Trends Instead of Fundamentals

“Hot market.” “Next big thing.” We’ve all seen the headlines. But real wealth isn’t built by chasing trends—it’s built by sticking to fundamentals.

The fix

Align your portfolio with the seven pillars of wealth-building:

1. Capital preservation
2. Cash flow
3. Equity growth
4. Tax benefits
5. Inflation hedging
6. Strategic leverage
7. Collaboration with experienced operators

Personal story

One client came to me overwhelmed from chasing short-term returns. Once we aligned her portfolio with these fundamentals, she had a roadmap she could trust—and replaced a third of her active income with passive cash flow in under three years.

7. Avoiding the Hard Conversations

It’s tough to think about illness or mortality, but avoiding these conversations can leave your family—and your wealth—vulnerable.

The fix

Prioritize setting up:

• Durable power of attorney
• Healthcare proxies
• Clear succession plans for your investments

Personal story

I’m not a lawyer, but I’ve seen firsthand how an outdated will led to years of legal battles for a family. Trust me—taking a few hours now on estate planning could save your loved ones years of stress later.

Final Thoughts

Financial freedom isn’t about making one big move; it’s about building a plan that works for you and removing the barriers that hold you back.

I’ve spent years helping high-earning professionals and business owners simplify their wealth-building journeys. The truth is, financial independence doesn’t have to feel far away—your next step is closer than you think.

Start by applying these strategies today. Your future self—and your bottom line—will thank you.