HENRY – High Earners, Not Rich Yet

Ultra High

HENRY - High Earning, Not Rich Yet

What is a HENRY? A HENRY is someone who is “High Earning, Not Rich Yet.”

These can be doctors paying off student loans, commercial airline pilots, dual income military couples, finance bros on Wall Street, or small business owners.

Typically, a HENRY in their 20s is making 6 figures, $100,000 – $250,000.

A HENRY in their 30s might be making $300,000 – $500,000 or even 7 figures.

Usually, HENRYs are not rich yet because they haven’t had time to invest their income and grow it.

However, sometimes HENRYs have extremely expensive lifestyles and are living paycheck to paycheck. It sounds absurd to someone making less than 6 figures, but many high income individuals spend their entire paycheck and have no savings after years of high income.

How to Move from HENRY to High Net Worth

No matter how much money you make, if you spend it all or spend more than you make, you will end up with very little to show for it.

High income earners have a unique opportunity to rapidly achieve financial independence or to achieve a luxury level of FI.

The key is a reasonable or even unreasonably high savings rate. Saving 10 to 20% of your paycheck means financial independence in 51 to 37 years. A 50 to 75% savings rate can cut that race down to 17 or 7 years.

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