Are You a High Earner? Don’t Make These Common Mistakes!
High earners, also known as “HENRYs,” are individuals who earn a high income but have not yet achieved significant wealth. For women, a high earner is typically someone who earns over $100,000 a year, while for men, it is usually between $150,000 to $250,000 a year. Despite their high income, many HENRYs struggle with debt and lack of assets.
According to Lisa Chastain, a money coach, high-income earners often have a lifestyle attached to their paycheck which can lead to overspending and difficulty holding onto money. While some debt can be good, such as a mortgage, many HENRYs struggle with credit card debt and a lack of assets. Building wealth through real estate can be a sound strategy for HENRYs, but it requires starting small and working up to larger purchases over time.
- High earners, or HENRYs, are individuals who earn a high income but have not yet achieved significant wealth.
- Many HENRYs struggle with debt and a lack of assets due to overspending and a lack of financial education.
- Building wealth through real estate can be a sound strategy for HENRYs, but it requires starting small and working up to larger purchases over time.
Understanding High Earners Not Rich Yet (HENRYs)
According to Lisa Chastain, a money coach, anyone making over $100,000 a year is considered a high earner for women, while for men, the bracket is between $150,000 to $250,000 per year. However, despite their high income, many HENRYs struggle with debt and lack of assets.
Chastain notes that with high income earners, a lifestyle is often attached to the paycheck, and many have never learned how to hold onto their money. They know how to earn and spend it, but not how to invest or save it. This is a common issue among clients, regardless of income bracket.
Debt is also prevalent among HENRYs, including credit card debt. Chastain emphasizes the importance of calculating net worth, which often reveals a lack of assets and a big hole in the asset category.
While purchasing a home can be considered good debt, Chastain advises HENRYs to start small and work their way up. The conversation around decision-making and spending habits is changing, and Chastain hopes to help HENRYs get ahead and achieve financial stability.
For professionals who are high income earners, the challenge often lies in balancing the desire to enjoy the fruits of their labor with saving and investing. The lifestyle that comes with higher income can quickly get away from them without proper financial planning.
Overall, understanding the financial challenges and habits of HENRYs is crucial for financial advisors and coaches to provide effective guidance and support.
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