What makes a HENRY?

• High Income: They earn a solid salary, possibly even six figures
• Limited Net Worth: Despite high earnings, they haven’t built substantial savings or investments
• High Expenses: They live in a high-cost-of-living area or have significant debt (i.e., student loans, mortgages)
• Lifestyle Creep: As their income increases, so does their spending
• Demographic: Younger professionals, in their 20s, 30s, or 40s

What do HENRY’s experience?

• Financial Strain: They feel like they’re “just getting by” or living paycheck-to-paycheck despite earning well
• Need for Planning: They could benefit from strategies to increase savings and investments, like contributing to retirement accounts or exploring other asset-building opportunities
• Wealth-Building Opportunities: They have a longer time horizon for compounding returns, making them ideal candidates for financial planning to build wealth

Is being a HENRY a bad thing?

Not necessarily. Earning a high income, especially in your 20s and 30s, is incredibly exciting and deserves to be celebrated by buying the things you couldn’t afford before. Go on that vacation. Buy that new couch. Spend your hard-earned money in good health.

The problem is when you start spending without thinking, and all of a sudden your earnings and spending become a revolving door. If you find yourself asking, “Where did all my money go?”, that means a high income isn’t enough anymore; it’s time to work on a high net worth.