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High earner not rich yet? 6 Ways to get rich with a high salary

A newish phrase has been coined called HENRY’s high earner not rich yet.

This describes people, more recently Millennials, on high salaries but don’t seem to have much to show for it yet.

If you are a high earner but not rich yet, it’s time to get on top of your money. Track what’s going on, pay yourself first by saving and then spending not the other way around. Then start to invest in assets that will make work optional one day and make you financially independent.

They have the potential to be wealthy but as yet haven’t managed it. 

HENRY High Earner not Rich Yet summary table

Reasons for Being a High Earner but Not Rich YetActions to Take
High ExpensesCreate a budget and reduce unnecessary spending. Focus on saving and investing a portion of income.
Lack of Financial PlanningConsult with a financial advisor to develop a comprehensive financial plan. Set specific goals and prioritize saving and wealth-building strategies.
Debt AccumulationImplement a debt repayment plan, prioritize paying off high-interest debts, and avoid taking on unnecessary debt. Focus on building a solid financial foundation.
Insufficient Saving and InvestingIncrease savings rate and automate contributions to investment accounts. Educate oneself about various investment options to make informed decisions.
Lifestyle InflationAvoid succumbing to the temptation of excessive spending as income increases. Maintain a modest lifestyle and focus on long-term financial goals.
Lack of DiversificationDiversify investments across different asset classes to reduce risk. Consider consulting with a financial planner or financial coach for guidance on diversification strategies.
Poor Money Management SkillsEducate oneself about personal finance, budgeting, and investment principles. Seek financial literacy resources and consider taking courses, workshops or working with a financial coach.
Inadequate Income GrowthCreate a budget and reduce unnecessary spending. Focus on saving and investing a portion of your income.
Why am I not rich yet? Could these have something to do with it?
Henry High earner not rich yet!!

What is a high salary? 

In the case of Henrys, the high salary means something in the range of 6 figures so £100k
plus. In theory, this is a high income that should result in a fair amount of discretionary income. If you’re earning this sort of money early in your career, then it would appear that you could become very wealthy as your career grows. 

Henry families could see household incomes of £200k+ but again still feel broke. One or both
partners with significant income but still unable to build real wealth

Although tagged at six figures depending on where you started from, your location and expectations, you could feel like a high earner on lower salaries. 

What is the average UK salary? 

The average household income in the UK is around £35k in 2019. This can be skewed by higher incomes predominantly in London, but this is still a massive way off six figures.

So a six-figure salary is way above the average. Once you earn over £75k or more in the UK, you are in the top 5 per cent of earners. 

Now if you are earning this sort of money early on in a career, imagine what you might be making at the top of your profession — serious money. But imagine if you are making serious money and still more or less broke. One or two paychecks away from disaster. 

If this is the case, you are still very vulnerable to any downward change in your finances even with a significant salary. 

High earner not rich yet, why? 

Well, it’s probably several things but certainly to do with spending most if not all of what you earn on stuff. It might be excellent quality stuff, you might like the thing/s, but it’s
still just stuff. 

It could be expensive houses, cars, gadgets, clothes and going out. Maybe it’s costly necessities, food, child care, travel or home comforts. 

All of this stuff is probably not adding to your wealth. It’s just adding to the things you have
that, cost you money to look after or lose value over time. 

Only productive assets, those that earn you an income and or go up in value over time add to
your wealth. Shares, investing in the great companies of the world or physical
property. Both of these have a track record, with temporary dips, of creating wealth

What’s killing your wealth? 

Failing to plan is planning to fail. Without a vision of a future life, you will live day by day. Spending what you can when you can. Even a straightforward plan for the next few weeks,
months and years ahead would start to focus your mind on what you will need to do it. 

In the next few months – well every month forever will be day to day costs, rent, food, travel,
everyday bills and going out for avocado on toast, etc. 

In the next year or two, you will likely also have higher costs, moving house, or a holiday or two. Maybe even bigger desires like houses, weddings and or kids. 

Without a plan, all or any of these can come along like one-car crash after another. Destroying any wealth or savings you have built up. 

Have you got a very leaky bucket?. Are your finances full of holes? Do you even know where your money is going today? If you don’t, it probably won’t be surprising to realise some of your money is just being wasted. But that money is leaving your accounts for things you never even knew you had. Old subscriptions to various things, magazines, gyms, this or that
social club and numerous screaming channels (how much TV can you watch!) 

FOMO is making you miserable 

Comparison will make you feel miserable nearly every time – unless you compare yourself to someone in a worse position than you. 

Facebook, Instagram, friends reunited, etc. has meant that we can see the highlight reels of all our friends, work colleagues, random people we have met and exes. 

The internet, emails, and social media have meant that we can always be bombarded with stuff/guff with our permission.  

Can you cut the cord/screen to get outside and do something less boring instead? 

JOMO: the Joy Of Missing Out.  

The joy of missing out is going to be a new craze. Well, it might be, but I haven’t joined in yet.

What would happen if you missed out on all that stuff? If you didn’t go out every week, didn’t go on those expensive holidays? My life would be miserable, I hear you say. 

Well, it might not be that bad. Remember, if you didn’t spend your money on these things, you could save more….and then spend that on what you really value sometime in the near

How to stop the bleeding 

Start tracking your finances right now. Just use an app to make it easy. Set up a few categories
and off you go seeing in real-time what’s going on. 

Review and cancel what you no longer use or is clearly a waste of your money. 

Think about what you want to do with any crappy debt. This is debt with no upside. It’s not connected to an appreciating asset, it’s expensive, and you keep adding to it through more stuff. This is often debt or credit on store cards, loans or finance on things like cars. All of these things could well be draining you of a significant amount of your hard-earned money.  

Figure out what, where, and how much this debt is. Even a simple spreadsheet will help you see what the picture is. Make sure you make the minimum payments and then devise a plan what you want to do with the rest, i.e. ask yourself how long you want to keep paying this debt?   

Stabilise your foundations

Once you are tracking your finances, you can start to make sure more money is coming in than going out. This is the critical foundation of getting on top of your finances.  

Automate all your payments for rent, utilities, debts, etc. so that you can concentrate.

Think about what safety nets you have in place if things go wrong. 

Do you need to have any insurance in place?  Is anyone dependent on you or your current income? If you have dependents, you need to think about how they will manage without your income. 

Do you get any insurance through your work, if so what for and how much? Might this require any top-up insurances, life, critical illness or income protection?   

Build an emergency fund. Something like 3-6 months’ expenses. This will help you ride out any significant shocks to your finances, like being made redundant

Start building your pillars of wealth 

Pay yourself first. This can often seem like a strange concept. But Who actually gets paid first when you get paid? Is it Netflix, your credit card and the local pub? When do you get paid? Probably after everyone else has taken their cut of your money. 

Set up a direct debit to save some money as soon as you get paid. You are paying yourself first. Then spend what is left. Not the other way round. 

Once you have paid yourself first – you can start to think about saving and investing for the longer term.  

Make sure you are maximising your tax allowances such as investments inside tax-efficient rappers (ISA’s and pensions). Invest in things that have always worked, not just hot right now.

The great companies of the world and physical property. Make sure that you know the risks and opportunities and that the ride can be rocky. The long term trend is your friend. 

View whatever the latest fade or get rich quick scheme is with extreme caution. You know the get rich quick schemes that pop up on Youtube all the time. You need to know what looks too good to be true so that you know it probably is. 

Investing in your self-education, especially how to earn, manage and invest your money will pay you massive compound interest in the future. The more you can develop your knowledge, the more you will have a chance of earning, keeping and growing your money.  

Plan for the future 

learn and understand what builds long term wealth. It’s not just a large salary its also wise use of your money and investing in assets that grow in value and produce an income over the long term. It’s not copying what everyone else is doing. Remember the Jones are probably broke. 

Realise that you’re probably going to live for a long time. What sort of life do you want to have when you don’t want to or can’t work anymore? 

Begin with the end in mind. What type of life do you want to retire to? I am guessing a comfortable and dignified one with opportunities for travel, hobbies, and adventures. And
not just sat at home watching TV as you have no money to do anything. 

High earning not rich yet estate planning

Regardless of your current financial situation, estate planning is a crucial aspect of financial management. If you’re someone who is earning a high income but still working towards building wealth, then it’s especially important to prioritize estate planning to protect and grow your assets over time.

To get started with high-earning, not-rich-yet estate planning, here are some key steps you can take:

Define your financial goals: Before starting an estate plan, you must clearly understand your goals.

This might include saving for a down payment on a house, building up an emergency fund, or investing in stocks or other assets to grow your wealth over time. By defining your goals, you can create a plan that is tailored to your specific needs and priorities.

Create a will: A will is a legal document that outlines your wishes for how your assets should be distributed after your death.

If you don’t have a will in place, your assets may be distributed according to state law, which may not align with your wishes. By creating a will, you can ensure that your assets are distributed according to your wishes and that your loved ones are taken care of.

Consider a trust: A trust is another legal tool that can be used to protect and manage your assets.

With a trust, you transfer ownership of your assets to a trustee who manages them on your behalf. There are many different types of trusts, each with its own advantages and disadvantages, so it’s important to work with a financial professional to determine which type of trust is right for your needs.

Plan for incapacity: In addition to planning for your death, it’s also important to plan for incapacity.

This might include creating a power of attorney document that allows someone to make financial and medical decisions on your behalf if you cannot. By planning for incapacity, you can ensure that your wishes are respected and that your financial affairs are managed effectively if you cannot do so yourself.

Review and update your plan regularly: Estate planning is not a one-time event.

Reviewing and updating your plan regularly is important to ensure that it still aligns with your goals and priorities. Major life events, such as getting married or having children, may require updates to your estate plan, so it’s important to stay on top of these changes.

To illustrate these steps, here’s an example:

Let’s say you’re a high-earning professional who wants to build wealth over time. You define your financial goals, which include buying a house within the next five years and investing in stocks to grow your wealth.

You create a will that designates how your assets should be distributed after your death, and you set up a trust to protect and manage your assets.

You also create a power of attorney document that designates your spouse to make financial and medical decisions on your behalf if you become incapacitated.

Finally, you review and update your plan regularly, making changes as needed to ensure that it still aligns with your goals and priorities.

Overall, high-earning not-rich yet estate planning is an important aspect of financial management.

By taking the steps outlined above, you can protect and grow your assets over time, and ensure that your wishes are respected in the event of incapacity or death.

With the help of a financial professional, you can create a plan tailored to your specific needs and goals, and take control of your financial future.

It’s going to be ok if you take action now

You are not alone. Many people have money worries at some point, no matter their income.

The key is to take small daily steps to understand what’s coming in and going out.

Figuring out where your money is going and if this is where you want it to go. If not, what could you change, alter, pivot away from?

With this information, you can start putting your money towards short, medium and long-term goals. 

Three actions to change your high earners not rich yet status

  1. Get control of your income and outgoings – track what is happening.  

2. Stop the leaking away of your money – cut out the waste.

3. Plan for what you want and how to get it – write it down.

Take these small steps and you will start to see your wealth growing.

If you want help planning your financial future, get in contact below.

FAQ: High earner not rich yet UK

Am I rich yet?

If you’re asking whether you’re rich yet, the answer is probably no. Unless you have a few million dollars in the bank, you’re likely not considered wealthy.

Here are some criteria that commonly define wealth:

-A high income. This is usually defined as an annual salary of $100,000 or more.
-A large amount of money saved. Depending on your lifestyle and obligations, this could be anywhere from $500,000 to several million dollars.
-Low debt levels. This means having little to no debt outstanding on loans or credit cards.
-Several sources of income making work optional

Why am I not rich yet?

There are a few possible reasons why you’re not rich yet.

It could be that you don’t have enough money saved, or you may not be making enough money to support the lifestyle you want.

It could also be that you’re not investing your money wisely, or you may not be taking advantage of all the opportunities available to make more money.

No matter the reason, you can take steps to become richer.

You can start by saving more money, making more money, or investing your money more smartly.

You can also learn about financial planning and how to make the most of your income.

The more knowledge and control you have over your finances, the closer you’ll be to achieving your financial goals.

How to become a high earner?

Becoming a high earner is difficult, but it is possible with hard work and perseverance.

Here are some tips to help you on your way:

-Get a good education formal or through experience. This is the most important step, as it will give you the foundation to start your career.
-Find a good job and work hard. It’s important to find a position that you’re passionate about and offers good pay and opportunities for advancement.
-Save as much money as possible. The more money you save, the more options you’ll have when investing in your future.
-Invest in yourself. Learning new skills and taking courses will help you stand out
-invest in assets that will grow in value and provide an income like properties, businesses and the stock market.

High income not rich yet?

There’s an important distinction to be made between “high income” and “rich.” High income simply means you’re earning a lot of money; being rich means your money is working for you, rather than the other way around.

So, if you’re earning a high income but living paycheck to paycheck, it’s likely because you have yet to build up the wealth necessary to become truly rich. The good news is, it’s never too late to start! Here are a few tips for how to make your money work for you so that you can become rich:

Invest in assets, not liabilities. Rental properties, businesses, and the stock market are all great assets to invest in for wealth creation.

High earning not rich yet requires you to start accumulating assets that will grow in value and earn you an income in your sleep.

Who Qualifies As a HENRY?

HENRY (High Earner, Not Rich Yet) is a term used to describe individuals or households who have a relatively high income but have not yet accumulated substantial wealth.

While there is no strict definition, HENRYs typically fall into the category of earning above-average incomes but may still face financial challenges or limited net worth due to various factors such as high expenses, debt, or inadequate saving and investing habits.

HENRYs are often seen as a demographic with great potential for wealth accumulation in the future as they navigate their financial journey.

What Is a HENRY Millennial?

A HENRY Millennial refers to a subset of the millennial generation (born between the early 1980s and mid-1990s) who fall under the category of High Earners, Not Rich Yet (HENRYs).

These individuals are typically millennials who have achieved above-average incomes but have not yet accumulated significant wealth.

HENRY Millennial individuals often face similar financial challenges as other HENRYs, such as managing high expenses, student loan debt, or limited savings.

The term “HENRY Millennial” is used to specifically identify this particular segment of the millennial population within the HENRY category.

What is considered a high earner?

In the U.S., a high earner is often considered someone in the top 10% of income earners, which as of 2021 was roughly $140,000 or more per year. For the top 1%, it’s $500,000 or more per year.

In the UK, a high earner might be someone in the top 10% of earners, which as of 2021 was about £54,000 or more per year. For the top 1%, it’s approximately £160,000 or more per year.

Financial Life Coaching & Planning

High earner not rich yet? Would having a GAME plan or financial coaching help understand your money and life needs? 

  • Is your life, job and financial admin in a mess?
  • One or two months away from financial disaster if you quit?
  • Not enough time or money to achieve what’s most important to you?
  • No idea how to plan, save and invest to become financially secure?  

What’s likely to be the outcome if you don’t make some serious financial plans and start saving?

Without making clear plans, you are at risk of having nothing to fall back on when things change for the worse. 

Financial life coaching and planning will give you the support, guidance, and accountability you need to succeed with money and life building your savings and wealth.

  • Get you financially organised
  • Build your savings cushion for when things go wrong
  • Help you figure out how much money is enough
  • Help you understand and build wealth to never run out of money

Start building your money confidence now because waiting will only make it more expensive and painful to achieve later.

Plan, build and enjoy your money.

Taking you from life and financial crisis to happiness.

Contact us here for a chat about building your money confidence and what options you might have for creating wealth in every area of your life.


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