They're young, educated, ambitious and earn good money. But they are not rich yet, and they live day by day.
They are the HENRY, acronym for “High Earner, Not Rich Yet“, that is, millennials who have a high income but not consolidated assets.
These are those young people who have above average salaries, but they find themselves facing difficulties that prevent them from saving and reaching their financial goals.
Henrys around the world
In the United States, the Henrys are estimated to be the 20-25% of the millennials, that is, those people born between 1981 and the 1996.
The term HENRY was first coined in a Fortune article in 2003 to refer to the families who earned among the 250.000 and i 500.000 dollars per year.
Most HENRYs are young professionals 30 years who have followed one of several paths to reach their current income level. Primo, they have climbed the hierarchy of a large company or have jumped from one company to another, marginally increasing their salary with each job change.
Others have started their own businesses or made a fortune with side hustle, and now they find themselves in a situation where they make a lot of money, but they also have a lot of expenses.
Indeed, HENRY's status implies that these people are still living"paycheck to paycheck“, or “paycheck to paycheck”, without being able to put savings aside.
The HENRY situation in Italy
In Italy, there is no precise definition of HENRY, but it can be said that these are those millennials who have an income higher than 50.000 euros per year, and therefore they are placed in the high range of the national income distribution.
However, Income is not the only factor that matters. Italian HENRYs also have to deal with increased tax pressure, less social mobility, greater economic uncertainty and less availability of public resources.
The HENRYs share a high level of education and a strong sense of ambition. They are not satisfied with their current position, but they want to grow professionally and personally. I am always looking for new learning opportunities, of challenges and innovation.
HENRYs are also generally very attentive to their lifestyle and well-being.
They love to travel, discover new cultures, frequent trendy places, take care of your image and health. They are aware of the importance of environmental and social sustainability, and try to make responsible choices.
HENRY's status isn't all sunshine and roses
Being a HENRY in Italy doesn't mean having an easy life. On the contrary, the HENRYs face various challenges and difficulties, which limit their ability to save and achieve financial independence.
For example, HENRYs tend to live in cities with a high cost of living, where they have to pay high rent costs, Transports, the food, entertainment and other services. Furthermore, the HENRYs have to pay high taxes, which reduce their net income and purchasing power.
The HENRYs also have to deal with a unstable and uncertain economic situation, which makes them vulnerable to any crises or shocks.
Most millennials, regardless of salary, he has not yet accumulated a solid fortune, that can protect them from any emergencies or needs. HENRYs must therefore be prudent and know how to manage their money well, avoiding getting into debt or squandering their resources.
HENRYs also need to find the right work-life balance, which isn't always easy. I am often under pressure and stress, due to their professional responsibilities and expectations. These high earners must therefore know how to manage their time and energy well, avoiding neglecting their health, their family, their friends and their hobbies.
Financial Independence for the HENRYs
Il lifestyle creep it is a phenomenon that occurs when people increase their lifestyle in proportion to their increase in income.
For example, moving from a studio apartment to a two-room apartment, going out for dinner more often, purchasing new cell phones and cars more frequently.
Some level of lifestyle creep is normal and desirable in order to improve your lifestyle, but getting carried away can have negative effects, especially if you are trying to put money aside for the future.
This phenomenon can be particularly problematic for HENRYs, as it can make it difficult to achievefinancial independence.
When the HENRYs earn more, they may be tempted to increase their spending on things like housing, the car, The travels, restaurants and clothing. This can lead to an increase in their cost of living, which can make it difficult to save money.
To minimize the negative effects of lifestyle creep, it is necessary try to maintain a conscious mindset when spending money, regardless of one's purchasing power.
In other words, only buy things that really matter and improve your quality of life, and don't spend more money just because you earn more.
The HENRYs are, In short, the millennials who have been able to seize the opportunities offered by the market and technology, and which have established themselves as a driving force in the economy and society.
But it is also millennials who must face the challenges and uncertainties of the future, and who must find the right balance between work and private life.
The HENRYs in a nutshell
- HENRYs are millennials with a high income but not an established wealth.
- In Italy, HENRYs are those who have an income greater than 50.000 euros per year.
- HENRYs are characterized by a high level of education and ambition.
- The HENRYs face several challenges, such as the high cost of living, high taxes, the unstable economic situation and the need to find the right balance between work and private life.
- Lifestyle creep can be a problematic phenomenon for HENRYs.
- HENRYs must be aware of their expenses and must strive to maintain a sustainable lifestyle.
The Italian community of the FIRE movement (Financial Independence, Retire Early) to stop working and retire young.