Are You a HENRY?
Share this @internewscast.com

(NerdWallet) – No, we’re not asking your name. And we promise we’re not trying to offend you.

HENRY is not intended as an insult; rather, it’s a moniker used to describe a specific group in the personal finance sector. If you’re earning a good salary but still feel like you’re not accumulating sufficient wealth, you might be considered a HENRY.

What is a HENRY?

The acronym HENRY stands for “High Earner, Not Rich Yet.” However, what qualifies as a high earner can differ depending on whom you ask.

We explored Reddit forums to gauge what participants are saying about HENRYs. Since users post anonymously, we can’t verify the details of their personal situations or experiences.

Over on Reddit in the r/HENRYfinance subreddit, HENRYs are defined as “people who earn high incomes, usually between $250,000 to $500,000, but have not saved or invested enough to be considered rich.”

Net worth is another key number to consider.

Trevor Ausen, a certified financial planner in Minneapolis, Minnesota, says that HENRYs often have “somewhere between negative net worth, thanks to student loans or early career costs, to around $1 million in assets.”

Having an income or net worth above these figures tips the scales toward “rich.”

Who is the typical HENRY?

HENRYs are often business professionals, doctors, lawyers or tech employees with equity compensation, Ausen says.

Many live in places like New York or the Bay Area, he adds, where it can be hard to accumulate wealth even with a high salary due to the high cost of living. They’re usually in their 20s, 30s or 40s.

In some cases, HENRYs are also the first in their families to earn a higher income. That can come with added pressure to provide financial support for relatives and create generational wealth.

How do you know if you’re a HENRY?

Now that you know what a HENRY is, let’s see if you fit the bill.

“If you’re earning well but still feel like you’re just getting by financially, you might be a HENRY,” Flavio Landivar, a CFP in Miami, Florida, said in an email interview.

You might be a HENRY if you:

  • Earn an above-average income (typically in the low to mid six-figure range).
  • Live in a high-cost area.
  • Spend most of your income on costs such as housing, student loans, child care and discretionary expenses.
  • Don’t feel financially secure.

But not all HENRYs are the same.

While many have trouble building wealth because student loans or living expenses eat up their income, others are saving aggressively, Ausen says.

“They’ve only been high earning for a short amount of time, and just have not had the time to really build up those assets and save enough where they can be considered rich,” he says.

Ausen says his HENRY clients generally have too much cash. After maxing out their 401(k)s or other retirement accounts, they aren’t putting their extra money to work in an investment account.

If you’re parking a lot of cash in a general savings or checking account, that’s a sign you might be a HENRY.

“While there certainly is an argument for how much emergency fund, essentially, someone should have, after a certain point, it starts to become not as efficient as it could be,” Ausen says.

What do HENRYs care about?

Like most people, HENRYs want more money and greater financial freedom. Online discussions in r/HENRYfinance and other forums often focus on lifestyle creep, career growth, investment options and strategies for minimizing tax burdens.

HENRYs are also looking for quick guidance and reassurance that they’re on the right track.

“These young professionals may be settling into their careers, gaining responsibilities and have less leisure time than they used to,” Yesenia Realejo, a CFP with Tobias Financial Advisors in Plantation, Florida, said in an email interview.

“They may be starting families, buying homes, saving for their children’s college. With so much on their plates, they may find that they’re saving, but have no planned financial direction.”

Is being a HENRY good or bad?

If you’re a HENRY, you may feel stuck. It might seem like you aren’t making enough progress toward your financial goals.

But it’s important to emphasize the “Y” in HENRY. You’re not rich yet — that doesn’t mean you’ll never be rich.

“With smart planning, managing expenses and focusing on long-term goals, HENRYs have a great opportunity to build real wealth down the road,” Landivar said.

“Without that focus, though, it’s easy to stay stuck living paycheck to paycheck despite a high income.”

Start by making, or revisiting, your financial plan. If you’re not sure where to begin, consider getting help from a financial advisor. Getting rich may happen sooner than you think.

Share this @internewscast.com
You May Also Like
Five Points businesses recovering after break-ins

Five Points Businesses Rebound Following Recent Break-Ins

Pattaya Thai is among several businesses in Five Points grappling with the…
Pakistani national sentenced to long prison term for smuggling Iranian weapons to Houthis

Pakistani Citizen Receives Lengthy Prison Sentence for Trafficking Iranian Weapons to Houthis

A Pakistani man has been handed a 40-year federal prison sentence for…
Eight Americans arrested in Bahamas after authorities discover 'high-powered weapons' cache, ammunition

Shocking Discovery: Eight Americans Detained in Bahamas for Hidden Arsenal of High-Powered Weapons

In a significant operation on Tuesday, eight American citizens were detained in…
Former mayor stabbed outside blue state business, suspect with multiple arrests charged

Ex-Mayor Stabbed Outside Business in Blue State: Repeat Offender Charged in High-Profile Incident

A former Massachusetts mayor sustained injuries from a stabbing incident outside his…
Luigi Mangione joked about paying for prostitutes with Pokémon cards during Asia trip: report

Report: Luigi Mangione Allegedly Jokes About Using Pokémon Cards for Payment During Asia Visit

Luigi Mangione, the alleged assassin, humorously recounted using valuable “Pokémon” cards to…
A timeline of US attacks off South America and what Congress has had to say

Exploring the Chronology of U.S. Military Actions off South America: Congressional Insights and Reactions

WASHINGTON (AP) — Over the past two months, President Donald Trump and…
Illegal immigrant truck driver in fatal California crash should never have had license: DOT report

DOT Report Reveals Fatal California Crash Involved Unlicensed Immigrant Truck Driver

In a striking report released on Thursday night, Sean P. Duffy, the…
42-year-old cold case closed after detectives crack into discovered confession

Detectives Solve 42-Year-Old Cold Case with Newly Uncovered Confession

A chilling chapter from 1983 has finally reached its conclusion in Nassau…
How inflatable costumes ballooned at anti-Trump rallies due to a Portland protester's frog outfit

Inflatable Costumes Take Center Stage at Anti-Trump Rallies, Inspired by Portland Protester’s Frog Attire

In Portland, Oregon, a unique form of protest unfolded when Seth Todd…
Strike averted: Musicians' union reaches tentative deal with Broadway league

Musicians’ Union and Broadway League Reach Tentative Agreement, Preventing Strike

NEW YORK — Broadway musicians have successfully brokered a preliminary deal with…
Vladimir Kramnik: Former world chess champion may face discipline for treatment of Daniel Naroditsky

Controversy Strikes: Vladimir Kramnik’s Conduct Under Scrutiny in Daniel Naroditsky Dispute

On Wednesday, the global chess governing authority announced it is contemplating disciplinary…
A GIF of a strike on a

Hegseth Announces U.S. Strike in Eastern Pacific Aimed at Suspected Narco-Traffickers

Pentagon Chief Pete Hegseth announced on Wednesday that the U.S. military has…