Aug 22, 2025
They pull in six-figure salaries but don’t think they’re rich.
HENRYs, or “High Earners, Not Rich Yet,” are a surprisingly large class of Americans who pull in big bucks but still feel financially strapped.
Advertisement
Some have liabilities matching their assets. Even with annual incomes topping $200,000, they’re living paycheck to paycheck and battling credit card debt.
Others are dedicated savers who only experience their wealth through a number in their bank account.
“Earning doesn’t actually make you feel rich; spending it does,” clinical psychologist Sabrina Romanoff shared with CNBC in July.
“If most people spent 99% of their paycheck, they’d feel quite rich. And it’s the paradox here. When we’re in accumulation mode, it’s very difficult to feel rich.”
Wealthy but financially unhealthy
Over 25% of high-earning households — pulling in between $200,000 and $300,000 per year — are unhappy with their finances, according to research by Matt Killingsworth, a senior fellow at the University of Pennsylvania.
“Even people who are doing pretty well aren’t maybe as satisfied as we might imagine,” Killingsworth told The Wall Street Journal.
Marie Incontrera is a 39-year-old Manhattan-based entrepreneur whose income soared from $15,000 a year as a professional musician to an expected $300,000 to $400,000 from her digital marketing consulting business. Her company is projected to generate $1.4 million in 2025.
Advertisement
“I would have thought back then that the amount of money I have in the bank right now, I would be rich, right? ... And I don’t feel that way,” she told CNBC. “I have more money anxiety, almost, now than I ever did in my 20s.”
Certainly, rising prices are making a six-figure salary less impressive than it used to be.
But many HENRYs also experience lifestyle creep and funnel their money into things like daycare, organic food or a home in a nicer neighborhood.
These can quickly feel like essentials and not luxuries, leaving high earners feeling like they don’t have much more disposable income than before.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
How HENRYs can get a grip on their finances
Whether they’re spending too much (or not spending enough) to feel rich, HENRYs should create a dedicated financial plan. That way they can stop spinning their wheels and start building true wealth and peace of mind.
Kill high-interest debt
A big salary means nothing if you’re drowning in credit card debt or one emergency away from panic.
A recent BHG Financial survey found that 62% of those earning more than $300,000 are struggling with credit card debt.
Advertisement
Debt is a tool that wealthy people can use to great effect, but high-interest debt like the kind on credit cards benefits no one. Put together a plan to pay it off before socking away money for investments or lifestyle expenses.
Budget backwards
High earners should set clear short-, medium- and long-term goals, whether it’s maxing retirement accounts, saving for kids’ education or buying a second home.
To get there, high earners might benefit from “reverse budgeting,” where you automatically put a set amount of money into savings and investments first. Only then do you consider how much you have left over for regular bills, like mortgage payments, which can help you avoid lifestyle creep.
One popular framework is the 75/15/10 rule, where 15% of your earnings goes to investments, 10% to short-term emergency savings and 75% goes to immediate needs and wants.
Call the pros
Before you get a personal trainer, think about a financial advisor.
According to a 2024 Northwestern Mutual Planning and Progress study of high-net-worth Americans (those with investable assets of $1 million or higher), families with an advisor are more likely to believe they will be prepared for retirement than those who lack an advisor (92% vs. 77%, respectively).
Having a professional on your side helps optimize everything from taxes to investments to long-term goals.
They can highlight lesser-known strategies like Health Savings Accounts (HSAs) or tax-loss harvesting, which involves selling securities at a loss to offset gains in other investments.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Jessica is a freelance writer with a professional background in economic development and small business consulting. She has a Bachelor of Arts in Communications and Sociology and is completing her Publishing Certificate.
