Are you a HENRY (High Earners, Not Yet Rich)?
Are you someone who is earning a six-figure salary, but still at the end of the month, feel broke? Chances are you are a HENRY.
HENRYs are someone who is earning fairly well but still feels broke.
We can explain the concept of HENRY with help of an example. Mr X and Mrs X are both working in multinationals, earning hefty salaries. They own a plush apartment but are paying up for a hefty loan. Recently they became owners of a swanky SUV that added to another loan they had to pay. This way at end of the month they are left with almost no savings and yet another wishlist like vacation aboard or a pricey designer handbag for Mrs X is ready. Sounds familiar? These young millennials had high dreams and ambitions but zero savings, they are HENRY.
Meet the new millennials, the HENRY
The new financial term was coined by Shawn Tully in “Fortune” in the year 2003. You see, earning six figures in today’s time does not make you rich or even middle class for that matter. You are termed HENRY when you earn big bags of money, go on foreign holidays, wear designer labels but still have no savings. So, this guide would give you an insight into who HENRY are and why they have no savings?
HENRY likes all the finer things in life but still act thrifty when required
As mentioned above HENRY has a taste for all the finer things in life. They travel expensively, wear the best of brands, join high-class club memberships. They may even have a full-timehouse help and even a dog walker. But interestingly, they won’t shy away to have a budget in certain areas. They are also known to shop when brands offer discounts, they rent luxury items like imported cars and though they travel around the world, they use their credit card points to buy tickets.
They don’t consider themselves wealthy and often overwork themselves
Surprisingly, even after maintaining such a luxurious lifestyle, the HENRY don’t feel they are wealthy. That is because much of their earning goes into maintaining their lifestyle because they feel a need to maintain a façade of wealth in front of peers and friends. Seeing as they can’t seem to save, they can’t stop working to keep up with their financial obligation like taxes, EMIs, loans, etc.
So, are you a HENRY?