HENRY
[ hen-ree ]
What does HENRY mean?
Imagine earning $250,000 a year but still worrying about overdrawing your checking account before the next payday. In economic terms, that makes you a HENRY. This acronym, which stands for “high earner, not rich yet,” refers to a group of young professionals in their thirties and forties who enjoy a healthy salary but haven’t actually amassed much net worth yet or seen their investments pay off. However, their wealth may come later in life.
So why the cash-flow crunch now? Despite earning hefty salaries from careers in law, medicine, or finance — between $250,000 and $500,000 annually — HENRYs often see their income tied up in expenses like student loans, high rents or mortgages, costs of city life, childcare, taxes, and other lifestyle expenditures, like designer clothing and pricey vacations.
Where does HENRY come from?
Journalist Shawn Tully coined the acronym HENRY in a 2003 Fortune magazine feature on a new economic cohort he’d identified. HENRYs are considered affluent based on their high discretionary income, but they often don’t have enough left over after their high lifestyle costs. Tully also identified the alternative minimum tax, which reduces deductions and in turn often raises tax bills for high earners, as a major reason HENRYs don’t feel “wealthy” despite bringing home decent pay. By identifying the HENRYs, Tully helped redefine wealth as a measure of net worth rather than income.
Examples of HENRY
Shaun Michael Lewis identifies as a HENRY. 42-years old, Lewis is a Real Estate CEO from Whitefish, Montana HENRY = High Earner Not Rich Yet
✅Meet the HENRYS: The Six-Figure Earners Who Don’t Feel Rich 💼When you’re a HENRY—high earner, not rich yet—a hefty salary isn’t enough to buy freedom from financial pressure
OH, HENRY! HENRYs (High Earner, Not Rich Yet) HENRYs are labeled the 'working rich' as their rich status is largely attributed to their working income, not their accumulated wealth. Believe it or not, high earners without investments and savings feel like they're working paycheck-to-paycheck. This is largely by design when we look at factors like marketing strategies looking to capitalize on HENRYs income. With the right strategy in place HENRYs can secure their long term wealth with increased savings and investments.
Who uses HENRY?
Economists, journalists, and young professionals use the term HENRY, including in social media posts. The acronym has entered broader conversation over the years, appearing in articles and online discussions. Usage tends to resurface during times of financial uncertainty, such as the 2008 financial crisis and the post-pandemic 2020s.
NOTE
This is not meant to be a formal definition of HENRY like most terms we define on Dictionary.com, but is rather an informal word summary that hopefully touches upon the key aspects of the meaning and usage of HENRY that will help our users expand their word mastery.
