What is a HENRY?
No, I didn’t just change my name, don’t worry (Sidehustle Hen doesn’t exactly have quite the same ring to it). HENRY is an acronym for High Earners, Not Rich Yet. It’s a term mainly catered toward high income earning millenials, who household between $100,000 and $250,000. So a good disposable income, but depending on expenses, may not be able to live it up just yet.
They are a highly coveted bunch, because they are the gatekeepers of the wealthy, and a bunch of them will eventually move from HENRY to becoming HNWs and UHNW eventually.
They are also fast growing, representing ~20% of households in terms of income. So while they may not have as much money to spare, they certainly make up for it in numbers.
Luxury and HENRYs
HENRYs are now being sought after by luxury brands, as they try to nurture them into the habit of luxury spending. This is why you see smartphone flagship prices going higher and higher. By now, we’re getting used to splashing close to or even more than $1,000 on the latest Pixel by Google, iPhone or Samsung. Apple Watches range anywhere from $350 upwards.
Targeting HENRYs is also a sounds strategy to enable brands to position themselves for the future, in making sure that they foster brand relations and loyalty with the group that is most likely the source of future ultra affluents.
Finance and HENRYs
And it’s not just the luxury and retail brands that are targeting HENRYs. With the wealth potential, wealth advisories and financial institutions are also firmly chasing up the HENRYs and banging down their doors.
Stashwealth is a financial planning provider squarely aimed the HENRYs. Imagine that!
There are also financial services providers writing articles targeting HENRYs, such as this one by intelligent investing and this piece by Treybourne Wealth.
There’s also a super interesting infographic on HENRYs.
Are you a HENRY? Do you feel highly sought after, or do you feel victimised as being the very central part of a strategy by brands to make you part with your hard-earned-but-gone-in-a-second money?
What’s the overlap in HENRYs seeking a new way out, and pursuing FIRE as a way out? I feel like HENRYs are definitely advantaged in that they are high earners, and simply need to know more about the math behind FIRE to start on the path.
What are your thoughts? Voice out in the comments!