Meet the Henry’s, a new term coined for millennials who earn between $100,000 and $250,000 but still feel broke.
According to what Melkorka Licea reported for the New York Post last month, a Henry stands for “high earner not rich yet,” and identifies those who earn over six figures but still feel far from wealthy due to student loans and rising costs of living. The term was originally coined by writer Shawn Tully in a 2003 article for Fortune Magazine, Business Insider reports.
Licea interviewed Henry’s that were all millennials who indulge in expensive habits, like staying at luxury hotels, embarking on international travel, owning and/or renting two homes, signing up for ClassPass (which can cost as much as $180 per month), or having a “pleasure fund” for fun activities. But despite their lavish lifestyle, they’ll shop at budget stores like Forever 21 or TJ Maxx and fund their travels through credit-card points.
“They’re people who want to get their financial s— together, but still keep their avocado toast, SoulCycle, and boozy brunch lifestyle,” Priya Malani, a founding partner of Stash Wealth, a financial-planning firm that caters to Henrys, told Licea. She said most of her clients live in New York City, work in tech or engineering, earn $180,000 annually on average, and have about $80,000 in student-loan debt.
When considering their debts, high living costs, and addiction to luxury, the Henry’s are left feeling broke and unfulfilled. According to David Wealth Management, a Henry is characterized as someone who earns a higher-than-average income, has little to no savings, and possesses feelings of low material wealth. Investopedia called Henrys the “working rich” —meaning they won’t be rich if they stop working.
More of their earnings “go into costs than go into wealth-building investments, leaving them feeling like they are more like regular people slaving for a paycheck than the wealthy 1% in America,” Investopedia said, adding that “these high earners are expected to have much the same lifestyle as wealthier compatriots but they do so by sacrificing their ability to amass wealth.”
When considering all the findings, the life of a Henry relates to their location and how much money they choose to allocate to live a social media-worthy lifestyle. So, we have to ask…….are you a Henry?
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