HENRYs: High Earners, Not Rich Yet, Struggle to Save Amid Inflation

6 HENRYs Share Financial Strategies for Saving and Investing Their 6-Figure Incomes, Anticipating Future Financial Pressures

6 HENRYs spill the tea on how they manage their big bucks and financial worries. 🤑💰

Miles Goodloe, 34, is basking in the glory of being a financial “HENRY.” No, he’s not the Henry Kissinger of finance. He’s a High Earner, Not Rich Yet. With a booming career in technology education that earns him a six-figure salary, he fits the bill. But don’t let the money fool you. Goodloe, like many other HENRYs, is concerned about his financial stability.

Despite his substantial income, Goodloe finds himself drowning in $120,000 of credit card debt, $80,000 of which is student loans. Retirement savings? Minimal. He spends a hefty $3,700 a month on essentials alone, leaving little leftover income. However, instead of cutting expenses like cable, he chooses to enjoy nights out with friends. Goodloe acknowledges that it’s time to start using his money wisely and secure his financial future.

While HENRYs can be found across various demographics, typically between 27 to 42 years old, earning over $100,000 per year, without kids but burdened with hefty student loans, their financial situations and goals differ. Some HENRYs save more than 50% of their income for retirement and investments, while others concentrate on reducing debt or investing in significant life expenses like childcare or a mortgage. Balancing saving and spending is their ultimate challenge, striving to secure their future without sacrificing the things that matter most.

Figuring Out the Right Amount to Save

Goodloe’s salary has enabled him to indulge in the “awesome luxury experience” of life. However, his massive debt obligations prevent him from achieving true financial freedom. With monthly debt payments totaling around $1,900, he has struggled to make headway. He plans to pay off $50,000 over the next two years while aiming to save $800 a month.

Not having an emergency fund is Goodloe’s primary financial insecurity. He understands the importance of protecting himself in case of unforeseen circumstances and aims to save enough to cover three to six months of expenses. To achieve this, he has started putting some money into retirement funds, donating to charity, and prioritizing experiences like visiting family across the country. Goodloe’s grand plan is to achieve the quintessential American dream.

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For those who have the means to save more, striking the right balance between saving and spending poses a significant challenge. Robert Oszust Jr., a 30-year-old business analyst, saves about 50% of his income to ensure he never finds himself in a dire financial situation. By keeping fixed monthly expenses such as haircuts and groceries under control, and allocating less than 20% of his and his wife’s combined income towards their mortgage, Oszust gains peace of mind. Nevertheless, he worries about job security and the future costs of childcare and caring for their parents. Recognizing the value in the assets they accumulate, Oszust acknowledges the importance of finding a balance between saving and enjoying the present.

Preparing Amidst Uncertainty

Greg, a technology professional in Connecticut, falls on the wealthier side of the HENRY spectrum. In his mid-40s, he has already saved a staggering $1.5 million for retirement. Despite his substantial savings and a combined income of around $300,000 with his wife, Greg still doesn’t consider himself rich. His mortgage, daily expenses, and cautious spending on non-essentials keep him grounded. Worried about the impact of technological shifts on industries like finance and insurance, Greg focuses on maintaining a high savings rate. The uncertainty surrounding future healthcare costs and Social Security further fuels his inclination to save. While he acknowledges the privilege of having accumulated a substantial nest egg, Greg ponders the freedom and flexibility it will afford him in pursuing alternative paths.

Sherry, a 26-year-old working in wealth management, has found her refuge through saving. Amid concerns about the economy and inflation, she saves an astonishing 70% of her and her husband’s combined income. Delaying starting a family to focus on career development and confronting high childcare costs, Sherry finds solace in the knowledge that she is better prepared than many of her peers. While she and her husband still enjoy dining out and shopping for clothes, they carefully evaluate larger purchases. Sherry understands that money is a tool and prefers to use it wisely for lasting fulfillment.

Investing in the Short Term

Domenic Boresta, a 27-year-old law firm employee in Washington, DC, emphasizes the importance of striking a balance between long-term investments and enjoying life’s pleasures. Despite earning around $100,000 per year, the majority of Boresta’s income goes toward essential expenses, rent, and debt repayment. However, he also allocates a significant portion for his 401(k), mutual funds, and saving for future rental properties. Boresta’s motivation lies not in amassing great wealth but in having the freedom to live life to the fullest.

While some HENRYs delay significant milestones like homeownership or starting a family until they accumulate more wealth, others are unwilling to sacrifice their dreams. Eric, in his early 30s and working in plastics manufacturing in Ohio, purchased a home and has young children. Despite rising costs, Eric continues to devote money to travel, family outings, and maintaining a comfortable lifestyle. Although high inflation has forced some adjustments, Eric remains determined to prioritize what is most important to him.

Are you a HENRY feeling anxious about saving for your future? Reach out to this reporter at [email protected]. Let’s navigate the financial journey together!

• Saving
• student loans