- Henrys (high earners, but not yet wealthy) are a broad group, often with incomes in excess of $100,000.
- Despite earning a lot of money, many people worry about being able to invest enough for their future and pay off their debts.
- Business Insider spoke to six Henrys across the country about how they’re saving money amid high inflation.
Miles Goodrow, 34, has finally made it – he’s Henry.
After years of study and work, he is expected to earn more than $100,000 in the field of technology education, giving him a status that, while not yet wealthy, is a gateway to high incomes.
Despite earning six figures, Goodrow doesn’t feel financially secure. He has $120,000 in credit card debt, $80,000 of which is in student loans, and has put little toward his retirement. He spends more than $3,700 every month on his necessities, excluding his debts and investments, so he doesn’t have much left at the end of the month.
Still, he chose to spend the extra money on a night out with friends, cutting back on expenses like cable bills.
“This is going to be my base income for the rest of my life, and I want to use that money wisely going forward,” Goodrow told Business Insider.
Henry’s demographics vary widely, but are typically between the ages of 27 and 42, earn more than $100,000 a year, have no children, and have a large income, according to data on 1,500 customers shared with Business Insider. I have student loans. hidden assetsfinancial advisor henry’s.
There are a variety of experiences and opinions regarding the financial situation and goals of self-proclaimed Henrys. Despite achieving six figures, many are cautious about spending and saving, with some saving more than 50% of their income for retirement or other investments. . Some people use a large portion of their paychecks to reduce debt or invest in childcare or mortgages. Many people strive to balance saving and spending without sacrificing things that are important to them.
Business Insider spoke to six Henrys from across the country about their savings strategies, worries about their financial futures, and short- and long-term aspirations.
Understand the appropriate savings amount
Mr Goodloe said his salary allowed him to have “amazing luxury experiences” but that paying off his debts was a huge undertaking and he could no longer move up in the ranks.
His debt payments were running at about $1,900 a month, and he was struggling to pay them off until this year. He aims to pay off his $50,000 over the next two years and save $800 each month.
“I probably feel most financially insecure about not having an emergency fund. I don’t feel like I have a safety net to protect me for three to six months if I get fired from my job. “‘s future financial goals are about the same,” Goodrow said.
He found money to fund his retirement while donating to charities and spending on his social life. He hopes to have $15,000 saved up by the end of next year, which will allow him to visit family across the country and feel ready to start a serious relationship.
“I definitely want to do that to achieve the American Dream,” he said.
For those who could save more, finding the right balance between saving and spending can be difficult.
Robert Osst Jr., 30, works as a business analyst and earns between $80,000 and $110,000, saving about 50% of his income in multiple investment accounts and an emergency fund. There is. All of this has helped him reach a level of comfort. his family.
“My parents told me that if there was a way to avoid being in a situation where you didn’t have money, it was better to save a lot to have as much liquidity as possible,” Ozust said.
To keep his savings high, he adjusts many of his monthly expenses. He schedules haircuts four times a year and goes to the grocery store once a month. Just under 20% of his and his wife’s combined income goes toward the mortgage.
He said his savings level gave him more security, but job security was always a concern. Still, he worries about the cost of childcare if he has children in the future and the cost of caring for his and his wife’s parents.
“There’s only so much you can cut back to save 40-50% of your income before your quality of life suffers, and you need to recognize the value of what you’re buying,” Ozst says. “My wife and I aren’t buying fast fashion, we’re not buying fragile consumables every week. We need to recognize that the assets we own have value. .”
Preparing amid uncertainty
Greg, who works in the technology department at a large bank in Connecticut, is on the other end of Henry’s spectrum. He’s in his mid-40s and has already saved $1.5 million for retirement, and his combined income with his wife is about $300,000. Still, Greg, who asked to be identified only by his first name due to privacy concerns, admits that he saves too much and is somewhat paranoid about changes in the economy and technology.
Although Greg is wealthier than many Henrys, he still doesn’t feel wealthy. His mortgage is $1,400 a month, and after his 17-year-old car broke down, he bought a truck and cut back on non-essential expenses. He has plans for an $800,000 nursing home, but worries that high-tech industries such as finance and insurance will be at risk as AI becomes more widespread.
“Strictly speaking, one reason we may be saving too much is because we don’t know what our health care costs will be in retirement,” Greg says. “As far as Social Security, we’re definitely not counting on it.”
He says this 60% savings rate is the result of years of working with his wife to pay off debt. He said his nest egg could allow him and his wife to retire early or pursue other passions, although he’s not there yet.
“Perhaps saving a little bit ahead of time could give you more freedom in your career, especially if things start to go awry or you just want to do something different,” Gregg said.
For 26-year-old Sherry, saving 70% of the couple’s combined income is the only way she can feel safe amid concerns about the economy and inflation. Sherry, who works in wealth management and asked that her first name be used for privacy reasons, has refrained from starting a family while pursuing a career amid high child support costs. he said. She also worries about supporting her parents, including paying for long-term care and helping with her daily living expenses.
She and her husband bought a home and, having saved more than two-thirds of their income, she takes some comfort in knowing she is better prepared than many of her colleagues. Sherry still eats out and buys clothes with her husband, but she said it’s hard to justify her purchases, which cost more than a few hundred dollars.
“Money is a tool, so I want to use it effectively,” she said. “I don’t want to use it for temporary happiness.”
short term investment
Domenic Bolesta, 27, who makes about $100,000 a year in Washington, D.C., invests about the same amount in long-term investments as he does in fun activities like dinners, friends’ weddings, and trips to the 2026 World Cup. ing.
Bolesta, who works at a law firm, said, “It’s not how much money you earn, but what you do with it that matters, but once you earn six figures, you can have more freedom in your life depending on what you do with that money.” I will be able to live,” he said. Hard.
The man, who just earned a master’s degree in public administration, said he still spends about two-thirds of his income on necessities like rent, living expenses and debt. His one-fifth of his income goes into a 401(k), investing in mutual funds, and saving for a rental property in a few years.
Despite the short-term concerns, he hopes to be able to save enough money by age 35 to start a family and own a rental property.
“I’m not really motivated by money. Money gives you a lot of freedom, but you need to be a millionaire, you need to have a company. That’s not me,” Bolesta said. he said.
Some Henrys hold off on buying a home or starting a family until they are more wealthy, but others are unwilling to sacrifice those life goals. Her girlfriend, Eric, is in her early 30s and lives in Ohio, where she bought a house a few years ago and has a young child. Eric, who works in a plastics manufacturing industry in Ohio and asked that his name only be used for privacy reasons, spends his money on travel and family outings and spends about $1,000 a month on food for his family. , said he saves about 30% of his money. His wife’s total income.
With a combined salary of $160,000, he and his wife found themselves cutting back on their children’s college savings due to rising expenses, as well as cutting back on their brokerage investments and 401(k) contributions. . But he said that as inflation rises, he will continue to put money into what matters most to him.
“Older people nearing retirement who have $1 million to $2 million in retirement savings are also feeling the pinch, so knowing that I’m not alone makes me feel a little better,” Eric said. said.
Are you Henry concerned about saving for the future? To contact this reporter, please contact: nsheid lower@insider.com.
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