- High earners often feel stuck financially due to rising costs, debt and lifestyle inflation.
- So-called “HENRYs,” or “high earners, not rich yet,” may still live paycheck to paycheck, or carry credit card debt.
- Experts say budgeting, tracking your net worth and setting financial goals are key to feeling secure.
According to data from the 2023 Census, 14% of all households in the United States earn $200,000 or more annually.
With NBC 7, you can watch San Diego News for free, anywhere, at any time.
For some of these customers, however, a sizable wage hasn’t translated into large account balances; analysts have dubbed them “HENRYs,” or “high earners, not rich yet.”
According to experts, rising expenses, debt, and lifestyle creep might make them feel stuck. According to a recent survey by BHG Financial, 62% of those who earn more than $300,000 annually have credit card debt. Numerous six-figure earners are still living paycheck to paycheck, according to other sources.
With our News Headlines email, you can receive the best local San Diego stories every morning.
Clinical psychologist Sabrina Romanoff asserted that “spending money makes you feel rich, not earning it.” “Most people would feel quite wealthy if they spent 99 percent of their earnings. And this is where the contradiction lies. Feeling wealthy is extremely challenging while we’re in accumulation mode.
Additional Personal Finance Information:What to know about the new student loan scheme that Trump’s “big beautiful bill” producedHealth plan under the Affordable Care Act The’subsidy cliff’ may hit enrollees in 2026.Trump’s ‘big beautiful plan’ includes these tax reforms for 2025.
According to a 2024 Bankrate survey, Americans believe that in order to feel wealthy, they would need to earn $520,000 annually on average.
Money Report
Trump’s trade deals and tariffs are on the chopping block in court. What happens next
Tesla investors are growing wary of Elon Musk’s futuristic promises
People claim to require more money to be comfortable when their income increases. To live comfortably, Americans earning less than $50,000 reported needing an average of $157,000 annually, while those earning at least $100,000 reported needing $246,000.
Marie Incontrera, 39, began her career as a virtual assistant in 2016 after working as a professional pianist, composer, and bandleader. During the epidemic, she then grew her company into a consultancy firm for digital marketing.
Her salary has increased due to the change in her career. Incontrera expects her company to make about $1.4 million in 2025. This year, she anticipates taking an owner’s draw of between $300,000 and $400,000.
According to Incontrera, “I had a pretty successful career as a musician through most of my 20s,” with CNBC. “But the thing they don’t tell you about having a career as a musician in music school is that you can be playing Carnegie Hall, which I was, and I was making $15,000 a year.”
Incontrera’s annual salary has increased from $15,000 to $300,000, but she still doesn’t feel wealthy.
“At the time, I would have assumed that I would be wealthy based on the amount of money I currently had in the bank. She stated, “I would have simply assumed, ‘Oh, yeah, she’s made it,’ and I don’t feel that way.” “I have more money anxiety, almost, now than I ever did in my 20s.”
“I feel quite fortunate. “I feel fortunate, but I don’t feel wealthy,” Incontrera remarked. I am aware that my business is a hamster wheel. The hamster wheel is something I truly adore. Even though I adore what I do, I know I can’t quit.
Experts believe that’s not rare.
Kamila Elliott, CEO of Atlanta-based wealth management company Collective Wealth Partners and a member of the CNBC Financial Advisor Council, stated, “It can be fairly easy for someone to feel like, I’m making really good money, but I don’t have a lot of discretionary income.”
“One of the things I focus on with my clients is a budget should be a representation of your values,” Elliott stated. You can’t value everything, which is the problem. To start feeling wealthy, you must choose one or two areas to concentrate your discretionary spending on, then take the excess and put it into savings.
Learn how spending habits may make even top incomes feel like they’re on a never-ending hamster wheel by watching the video above.
Also on CNBC
-
Trump floats tariff ‘rebate’ for consumers. Experts say it may be a challenge
-
Student loan forgiveness may soon be taxed again
