10 Signs You Make Good Money, but Not Rich Yet? Are you a HENRY?

By Krystal Brown

What impediments do individuals with substantial incomes encounter that prevent them from attaining wealth? Here are some of the challenges faced by those categorized as High Earners, Not Rich Yet (HENRY).

Debt From Student Loans

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The average amount owed on student loans, per individual, is $40,000, according to Education Data. This sum is about double as high for HENRYs at $80,000. The majority of HENRYs are better educated (consider physicians, attorneys, architects, etc.), have attended school for a longer period, and owe colleges and universities more money.

Home Costs

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Given where you reside, making six figures doesn’t imply the same thing. For instance, $100,000 may go pretty far in Cedar Park, Texas, but not even a down payment on a home in San Francisco, California, where the median property price is over $1 million.

HENRYs may be having difficulties since the occupations that come with their high salaries are often found in cities with high costs of living, such as San Francisco, New York, and Toronto.

Lifestyle Creep

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The majority of HENRYs also experience what is known as lifestyle creep or inflation. This happens when income growth is accompanied by a rise in expenditure, usually when luxuries are viewed as necessities and expenses soar. 


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Examples of these include acquiring a larger home, which results in a larger mortgage, purchasing a more appealing car with higher monthly car expenses, shopping for more exquisite clothing, taking more trips and careless use of credit cards. 


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Inflation is another aspect that adversely affects HENRYs and all working people. While it may appear that the average pay has increased over the previous 20 years, the notion soon evaporates when taking into account inflation and the growing cost of commodities.


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The high earners’ ideas of what their life should be like are the last factor that affects their capacity to save. Many of these young adults attempt to conform their lifestyles to those of their friends out of “Fear Of Missing Out,” or FOMO. This may result in more needless expenditure as they attempt to “keep up with the Joneses” of their day.

Read on for ideas on financial strategies for HENRYs. 

Get Debt Free

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Few things can hinder your capacity to accumulate money more than debt. It makes no difference how much you make if you do not pay off your debt. Making debt repayment a priority is the key to success. Before paying for your regular expenses, set aside a percentage of your income (20% or whatever you can bear) for debt repayment. When it comes time to truly pick between several debts, you have a few options to consider.

The Snowball Method is paying off the smaller debts first, then gaining momentum and working your way up.

The Rainshower Method entails dividing your funds equally across all of the debts you have to pay off. It promotes debt repayment and is simple to implement.

Using the method with the highest interest rate – not all loans are created alike. One strategy for paying off debt is to begin with the debt that comes with the greatest rate of interest (usually a credit card), pay it off first, and then move your way downwards.

Establish a Budget

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It’s really difficult to get better in a field you don’t keep track of. Making a monthly budget may be greatly aided by keeping track of your income and spending each month. You may effectively live within what you can afford and accumulate savings with the aid of a monthly budget.

You may simply build a budget using a bullet journal or software like Excel, or you can use one of these simple budgeting apps:

Start Saving Money

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It will be much simpler to reduce expenses if you’ve begun keeping track of your spending and sticking to a budget. Try to distinguish between needs and desires in your monthly expenditure, and then actively reduce the “wants.” This might involve reducing your out-of-pocket eating expenses, terminating pointless monthly memberships, and paying less at the grocery store.

Don’t forget to maximize the retirement savings program offered by your work. If you haven’t already, strive to maximize your 401(k) and inquire with your company about any “employer-match” plans.

Increase Your Income

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At times aggressive saving is insufficient (maybe you reside in a high-cost-of-living location where reducing expenses is just not possible). If that’s the case, think about generating additional money outside of your normal employment. This may consist of part-time work consultancy assignments in your specialty, tutoring neighborhood children in either person or online, launching a side business, working as a freelancer (while expanding your connections through your current employer) and selling old goods or turning them around.

There are now more opportunities than ever before to generate money. The only thing left to do is set aside the time and effort to commit to and maintain a side business.

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