If you make a six-figure salary and still don’t feel rich, you might become “Henry”
You may be wondering how someone making $250,000 a year isn’t considered wealthy, but there is a relatively new socioeconomic category called “Henry.” If you’re in a lucrative career but, for whatever reason, aren’t wealthy, you might be one of them, too.
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Read on to learn more about Henry, what the term means, and the unique opportunities and challenges this group may face.
HENRY is the abbreviation of “high earner, not yet rich”. The term was introduced in a 2003 Fortune Magazine article by Shawn Tully to describe people who have high incomes but still struggle to build wealth due to high expenses.
This is a paradoxical financial dynamic for those who are considered wealthy but do not experience the benefits typically associated with wealth accumulation.
Henry usually earned a decent salary but was unable to keep most of his money. Despite their impressive earning potential, a large portion of their income is consumed by taxes, student loan debt, housing costs, and other necessities. Henry had little savings and few assets, a situation that left little room for wealth-creating investments.
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There is no official Henry’s List, but the term is generally applied to people who earn between $250,000 and $500,000 but have minimal savings and investments.
Even if they have started investing, they have not had the time or opportunity to accumulate significant personal wealth.
Of course, lifestyle does play a role in Henry’s title. No matter your budget, you can live beyond your means, and HENRY is no exception.
Many luxury brands have recognized Henry as a promising market segment and are actively pursuing their own brands. High-end luxury goods such as designer handbags, jewelry and bargain watches were increasingly marketed to Henry. While they may not be technically wealthy, their discretionary income can support premium purchases, even if they may not be the wisest investments.
Henry is known as the “working rich,” who believe that wealth comes primarily from a steady income rather than from stock investments, real estate, or other accumulated assets.
