No, HENRYs aren’t a new company or anything like that. No HENRYs, or High Earners, Not Yet Rich, are people that exist among all generations, from baby boomers to Gen Z. While they earn plenty to enjoy an avocado toast or HBO subscription, they still can’t seem to save up their wealth!
Are You A HENRY?
While you may never have heard it before, the term HENRY was coined back in 2003 by Shawn Tully, a writer for Fortune. As stated, it means, “high earner, not rich yet.” It describes a specific type of professional, usually someone younger, in their 20s or 30s, who has started earning quite a bit of money, but has certain obligations holding them back from becoming wealthy. Everything from student loans to a lack of desire to own a home can stop even those making six-figures from spending too much. HENRYs also have a fantastic understanding of saving up and investing, but usually cannot afford to start yet.
What are other signs someone might be a HENRY?
A True Adult
Despite being young, most HENRYs do not shy away from adult life. Instead, they actually find it interesting and intriguing. What did an average young adult do 50 years ago? They probably attended university or held down a part-time job while renting a small apartment. Well, HENRYs tend to already be renting, but not owning, a home, or saving up for a trip around the world! They also regularly pay off their credit cards and have on-time bill payments, unlike many other young people.
Hardworking And Humble
HENRYs also regularly follow the “Two H” rule, even if they don’t see the results: that means they stay hardworking and humble at the same time. Sure, they don’t have lots of spare money to spend on Gucci or Louis Vuitton items, but that still does not stop them from working like a CEO who does!
Not Big Planners
For decades, older generations warned younger generations that they needed a plan. Parents would tell their children that they needed a long-term financial plan, one that included purchasing a home, having children, and even saving up for retirement. However, HENRYs are much more likely to live in the here-and-now. While they don’t spend frivolously, they are much more likely to save up for an upcoming vacation or down-payment, rather than plan for the future. HENRYs earn a lot, even more than their parents, but they don’t ever plan.
Spends More Time Home
Believe it or not, while many HENRYs are making more and more than their parents ever did, they are also working from home more often. While this shouldn’t come as a shock to anyone, as working from home is up across the board thanks to technology, HENRYs are particularly homebound. In fact, studies show that workers of Generation z like to spend more 60% of their time at home!
Millennials and Generation Z make up the majority of HENRYs. Hopefully, they can find a way to start saving and investing that money. Until then, their financial future is highly unstable, to say the least.
Sources: StashWealth, Finance101