Are You a HENRY? The Hidden Struggles of High Earners
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The term HENRY, short for High Earner, Not Rich Yet, is a popular acronym that’s gained traction over recent years in the world of personal finance. At first glance, it may seem like a contradiction: how can someone earning a high income still not be “rich”? The answer lies in lifestyle choices, financial behaviours and the very real impact of modern living costs.
In this blog post, we’ll unpack what it means to be a HENRY, why this group can be vulnerable to financial shocks despite earning well, and five practical tips to help HENRYs move from just earning more to building lasting wealth.
Understanding the HENRY
The term HENRY was first popularised in the US and has steadily become part of financial jargon globally. It refers to professionals, often aged between 25 and 45, who earn a relatively high income, typically in the top 10–20% of their age group, but have little in the way of assets, savings or long-term wealth to show for it.
Common examples might include young lawyers, doctors, consultants, engineers or tech professionals earning £100,000 or even more per year yet still living from month-to-month. These individuals often reside in large cities, however due to the recent increase in the costs of living, HENRYs can live anywhere in the UK, meanwhile housing and childcare costs eat away at income. Despite appearances of success, many HENRYs feel stretched, financially insecure or “behind” compared to peers or the previous generation.
Why Are HENRYs Not Rich?
There are a few recurring themes
1. Lifestyle Inflation
As income rises, so too do spending habits. Better cars, more expensive holidays, eating out regularly or upgrading homes, all justified because “I can afford it now.” Over time, this erodes any surplus income that could have gone towards wealth building.
2. Urban Living Costs
HENRYs often live in cities but as many individuals move away from major UK cities, a HENRY is just as often to appear in any UK town. They may have large mortgage payments that can absorb a large portion of net income. Add to that rising energy, travel and childcare costs, and disposable income can quickly dwindle.
3. Debt and Delayed Milestones
Many HENRYs start their careers with student loan debt and may delay saving for retirement or homeownership until later. By then, catching up becomes more difficult.
4. The Illusion of Success
Social expectations often play a role. There can be subtle pressure to maintain an affluent lifestyle, even if it’s financed by debt or unsustainable spending.
Five Tips to Transition from High Earner to Sustainable Wealth Builder
If you see yourself in the HENRY profile, the good news is you’re in a strong starting position. Income is a powerful wealth-building tool, but only if used intentionally. Here are five practical steps to help you shift from high earner to financially secure.
1. Define What “Rich” Means to You
The term rich is subjective. For some, it’s owning multiple properties; for others, it’s financial freedom and having a good work-life balance. Start by defining what wealth means in your own life, is it retiring early, buying a home, supporting family, or travelling regularly?
2. Track Spending and Identify Silent Drains
Many high earners don’t budget because income feels “enough” until it’s not. Start by reviewing your monthly outgoings and identifying areas where lifestyle creep has taken hold. These might include:
Multiple subscriptions
Premium food deliveries
Frequent holidays
Impulse purchases
The goal isn’t to strip out all enjoyment, but to align your spending with your goals. Reclaiming even £500 per month could translate into a healthy regular savings plans for your retirement
3. Pay Yourself First
This is the golden rule of personal finance. Set up standing orders to savings or investments on payday, not at month end. Aim to increase the percentage of what you save each year (or each time you receive a salary increase), even an increase of 1% each year will likely be unnoticeable to your standard of living but have a big impact on your total savings over time.
This approach builds “forced discipline” and makes savings part of your lifestyle, rather than an afterthought.
4. Build a Robust Financial Foundation
Wealth isn’t just about investing; it starts with strong foundations:
Emergency Fund: At least 3-6 months’ essential costs
Financial Protection: This is core consideration to protect against premature death or long-term illness to ensure you, or your dependents can maintain your desired lifestyle
Debt Review: Clear high-interest debt as a priority
These steps protect your income and provide peace of mind, allowing you to take long-term investment decisions later.
5. Make a Long-Term Financial Plan
Many HENRYs suffer from a lack of clarity, not capability. A written financial plan, even a simple one, helps you visualise the future, map out your goals, and make informed trade-offs.
It should include:
Retirement age and income target
Property plans (buying, upsizing, second home?)
Children’s education or legacy planning
Investment strategy and risk level
Tax optimisation (especially as income approaches £100,000+)
A financial planner can help build this with you, stress-test the assumptions, and provide accountability along the way.
Final Thoughts
Being a HENRY is a privileged position, but it can be a frustrating one too. You may be earning more than ever yet still feel stuck in a financial holding pattern.
The key to moving forward is intentional action: knowing what you want, cutting through the noise, and using your income to build true wealth, not just a lifestyle.
It’s never too early to start making smarter financial choices. With the right habits in place, HENRYs can become not just high earners, but high net-worth individuals with freedom, flexibility, and financial peace of mind.
If you’re unsure where to begin, consider speaking with a financial planner who understands your position and can help guide you from income to impact.