"Just because you make a six-figure annual income doesn't mean you should blow it. Indeed, we've heard countless stories about high-earning folks who still manage to live paycheck to paycheck. Lifestyle creep, big splurges (perhaps to deal with being burnt out at the office), and a lack of budgeting are all factors to blame for high-earning individuals who can't quite seem to get ahead financially."
"Indeed, on the social-media community (think Reddit), the group refers to themselves as HENRYs, which is a clever acronym for "high earner, not rich yet." Undoubtedly, the group isn't exclusive to six-figure earners who spend as much, if not more, money than what's coming in. However, it's not too uncommon to hear stories of big spenders who don't feel rich despite making far more than the average American."
High-earning individuals can still live paycheck to paycheck due to lifestyle creep, big splurges and lack of budgeting. Social-media communities have labeled many such earners HENRYs, short for 'high earner, not rich yet.' Earning more without reducing spending prevents adequate saving and investing needed to build wealth. Large discretionary purchases, like a new truck, can erode savings and increase debt, especially when alternatives like used vehicles could preserve capital. Debt on essential items should be minimized and emergency savings protected. Avoiding common insurance mistakes and comparing options can prevent unnecessary overpayment and protect long-term financial goals.
Read at 24/7 Wall St.
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