If you earn a good salary, have a lovely home, and can afford vacations, yet you don’t consider yourself rich, you could be a HENRY. HENRY is an acronym gaining traction for “High Earner Not Rich Yet.” Typically, HENRYs have a household income between $250,000 and $500,000, which means they are comfortable but unable to be frivolous with their money. We take a look at 12 signs that you might be a HENRY:
You Enjoy the Good Life But Aren’t Lavish
If you appreciate the finer things in life, like nice dinners, weekend getaways, and a comfortable home, but dropping millions on a mansion is out of the question, you’re likely to be far from wealthy.
Student Loan Debt Looms Large
Years of higher education often come with student loan burdens that can delay savings and investment. Your extensive education will land you a promising career, but you will be a HENRY until you can clear your debt and start to make significant compound interest.
You “Keep Up with the Joneses”
If you always feel like you’re trying to keep up with the latest trends and gadgets but worry about how much you’re spending, you are not as comfortable as you can be. When people are rich, they don’t worry too much about splashing their cash as they know they have enough in the bank to cover their spending.
You Ask Yourself, “Where Did My Money Go?”
You might have a good income, but if you track your expenses and are in disbelief at where your money is going, you are likely a HENRY. You will know you are out of this phase when you focus on how much you’re investing rather than how much you’re spending.
Your Dream Vacation Is on Hold
When it comes to vacations, you will know you’re a HENRY when your dream vacation is a long way off. While you can afford some travel, exotic destinations or luxurious trips are on hold until your savings grow.
Retirement Planning Feels Like a Distant Thought
For many wealthy people, retirement comes earlier than most people. Working longer than needed is not a common occurrence for rich people, as they have enough to see them through their golden years. However, if you still feel the pressure of day-to-day expenses, you are unlikely to be thinking of an early retirement.
Your Investment Portfolio Could Use Some Beefing Up
As a HENRY, you might have some investments, but they might need to be more robust for long-term wealth building. Ideally, divide your investments between asset classes like stocks, bonds, real estate, and cash equivalents to help mitigate risk and build wealth quickly.
Fear of Missing Out is Real
Like “keeping up with the Joneses,” fear of missing out can also lead to wasting your savings, the pressure to experience everything, whether it be the latest restaurants or trendy events, can stop you from reaching your millionaire goals.
You Feel Stuck in a Cycle of Work and Spend
Despite a good income, the feeling of not getting ahead financially can be a constant source of stress if you’re a HENRY. Compare this to rich people who feel much more relaxed if they lose a few thousand dollars in shares or can’t work extra hours to boost their pay packet. Even earning a joint income of half a million a year can feel stressful with the demands of the cost of living.
Sudden Expenses Cause Anxiety
Rich people feel comfortable with how much money they have for everyday spending and will have a pot of money to fall back on for surprising expenses such as doctor visits or car expenses. Constantly worrying about money, even earning a good salary, is a surefire sign that you’re a HENRY.
You Compare Your Journey to Others’ Destinations
Whether browsing social media, watching reality TV, or observing those around you, you are longing to feel financially secure if you feel jealous of what others have. Looking at how far you need to go before you can say you are rich can be disheartening and may even delay your goals.
You Want More Financial Freedom
Financial freedom is having enough wealth and passive income to cover living expenses without relying on a traditional job. It allows you to pursue your passions, travel the world, or have more control over your time. This is the ultimate goal of a HENRY, and you will only feel wealthy when you reach this level of freedom.
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