How Big is Your Wealth Gap (Really)?

Whether you own the company or lead inside one, there’s often a gap between what you have today and what you’ll need tomorrow. It’s called the Wealth Gap, and it’s the true measure of whether you’re building towards financial freedom to live out your Personal Plan.

 Your vision for life, and how you’ll live it, is your Personal Plan. It’s the connection between your work and your purpose. It includes everything you hope to accomplish: travel, supporting your kids, paying off the house, spoiling your grandkids, and giving to causes you care about.

 As you generate income, you have the opportunity to turn it into lasting wealth—whether through investments or by unlocking the value trapped in your business. Along the way, you also have the ability to increase your liquidity and flexibility, two essential drivers of long-term financial freedom. The goal is simple: build assets that fuel your Personal Plan and close your Wealth Gap.

 Let’s get to work.

Tools of the Trade

Wealth Gap = Wealth Goal – Current Net Worth (excluding your home and business value)

 Here’s how to calculate it:

 Wealth Goal: How much money you’ll need to accomplish your Personal Plan. Take the annual income you’d like to live on and multiply it by 25.

Example: $200,000 × 25 = $5 million.

 Current Net Worth (excluding your home and business value):We recently covered creating a personal financial statement, which is a helpful first step. In short, add up your current investable assets (excluding your home and any business value) then subtract what you owe. 

 The difference between the two is your Wealth Gap, the distance between where you are and what it takes to fund your future.

 So, now what?

Firm Foundation 

Closing your Wealth Gap isn’t about a single calculation; it’s about alignment. You need a clear plan and the discipline to relentlessly execute it.

 Start with clarity. Know what you’re building toward and why. Purpose-driven planning turns money from the goal into the tool.

 Next, get visibility. Understand where your wealth actually lives, whether in the business, in investments, or tied up in personal assets. Seeing the full picture helps you identify the gaps that need to be filled and brings focus to your decisions.

Then, protect what you’re building. The right structures, documents, and strategies aren’t just for emergencies; they’re how you make sure the value you’ve created continues to serve your life, not control it.

 From there, take strategic steps to increase value, both in your business and on your personal balance sheet. Build a company that can thrive without you, and convert business success into personal wealth that endures. Liquidity and flexibility are the cornerstones of a good financial strategy, and a source of peace and stability in times of volatility. Small, intentional moves compound over time into freedom and flexibility.

 Over the next few issues, we’ll unpack each of these ideas in more detail. For now, ask yourself: If you stopped working tomorrow, would your wealth be ready to take over the job?

 The best time to start closing your Wealth Gap was yesterday. The next best time is today.

How We Partner With You

 We help clients identify and close their Wealth Gap by integrating business, personal, and financial planning into one clear roadmap. Then we stay beside you, guiding execution, maintaining accountability, and adjusting as life and business evolve.

 For business owners, that means valuing the company, unlocking wealth trapped inside it, and diversifying personal assets.

For executives and professionals, it means turning consistent income into durable wealth that funds your next chapter with purpose and confidence.

 The goal isn’t just to grow wealth, it’s to use it well. We’ll help you make sure it does.

*The foregoing content reflects the opinions of Van Hulzen Asset Management DBA "Van Hulzen Financial Advisors" and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful. 

 Investment advisory services offered through Van Hulzen Asset Management, insurance products and services through Citadel, an affiliated company. Any references to guarantees relate only to insurance products and are based solely on the claims paying ability of the underwriting company.