Latest news with #HENRY
Business Insider
11 hours ago
- Business
- Business Insider
Meet the Gen Z HENRYs: They're making $565K on average but still renting
Earning six figures but living paycheck to paycheck — that's what it means to be a HENRY. As Gen Zers approach 30, a very small subset of the generation is aging into this acronym, which stands for high earners, not rich yet, and was coined by Fortune's Shawn Tully. With inflation biting extra hard during their young adult years, younger Americans increasingly think they need to earn more to achieve stability. In a 2024 Bankrate survey, Gen Zers said they'd need to make $200,000 a year to feel financially secure. At the same time, Gen Zers deal with " money dysmorphia," or an unrealistic perception of their own financial soundness and feeling stressed over money, largely due to social comparison and outdated ideas of what's affordable. Indeed, middle-income Americans have been living more like their lower-income counterparts, indicating that for Americans to feel middle-class, they actually need to be high-earning. To figure out who in Gen Z is actually earning above that threshold — and may exemplify the HENRY title — we delved into Census Bureau microdata from the Current Population Survey's 2024 Annual Social and Economic Supplement. We only looked at adult Gen Zers with a total income of $250,000 or more. Though Gen Z birth years span from 1997 to 2012, we only looked at those ages 18 to 27 in 2024. On average, these Gen Z HENRYs made just above $565,000 a year, compared to around $28,700 for all Gen Zers reflected in the microdata. They also skewed slightly more male than the wider Gen Z cohort. On average, Gen Z HENRYs were around 24 years old in 2024. They were also more likely to be married than their wider Gen Z cohort, and those marriages seem to be sticking so far — essentially 0% of Gen Z HENRYs were separated or divorced. Demographically, Gen Z HENRYs were also less likely to be white than their cohort peers, and more likely to be Asian or Pacific Islander. Gen Z HENRYs were also more likely to have a bachelor's degree or a master's degree and beyond, both of which can contribute to a wage premium. And HENRYs might have the entrepreneurial bug: They're more likely than the rest of Gen Z to be self-employed, although the vast majority held wage or salary roles in the private sector. Gen Z HENRYs were less likely to be homeowners than the wider Gen Z cohort, with 40% of HENRYs owning homes compared to around 53% of all Gen Zers. Conversely, HENRYs were more likely to be renters. However, homeowning HENRYs were more likely to live in more valuable properties — their estimated current property values were around $455,000 compared to around $441,000 for all of Gen Z. That tracks with a larger trend: Some high-earning Americans, especially younger ones, are opting for rent — it's increasingly become a better deal than maintaining and buying a home for many, and many higher-earners like the flexibility and amenities that come with a rental.
Yahoo
12-06-2025
- Business
- Yahoo
A Family That Earns $300,000 Per Year Asks For Some Budgeting Advice: 'Our Spending Has Always Been The Killer'
Earning a high income makes it easier to save money. However, if you have bad financial habits, that same income can dig you into a deeper hole. A couple in the HENRY finance subreddit shared that they earn up to $300,000 in annual household income and have two kids in a relatively affordable area. The couple does a bunch of things right, such as maxing out their retirement accounts and limiting debt to their mortgage and car payments. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. However, they're still looking to improve and identified a weakness that they want to address. "Our spending has always been the killer," one of the spouses explained. The post generated plenty of traction, with fellow Redditors sharing their thoughts. High earners are in a better position to hit their monthly investing goals before thinking about how they will cover their bills. For this couple, minimizing runaway spending can come down to setting more ambitious monthly investment goals. If the couple only maxes out their retirement accounts, they may want to set aside an extra $1,000 per month for a brokerage account. If the couple already puts some money into a brokerage account, they should increase their monthly contribution. The couple said that spending has been the killer, so they have more money to invest than what they're actually investing. Trending: Invest where it hurts — and help millions heal:. This approach reduces how much cash you have available, especially if you have this process happen automatically. If you never see the money, you won't feel bad about not spending it. If you want to improve any metric, you have to track it. Reviewing previous credit card and bank statements can help you see where most of your money is going. Take-out, streaming subscriptions, and entertainment are some of the areas where your money may be going. It's impossible to know for sure unless you track your expenses. The moment you start, you will discover opportunities to reduce your costs. Then, you can put more money into your investments and build up your nest egg. Tracking your spending is a great start, but if you have a strong motivation, such as financial independence or providing a large inheritance for your children, it's easier to cut down on commenter suggested that your financial needs and mentality toward money change as you get wealthier. This individual suggested that high earners conduct an item level cost-benefit each time they are about to make a purchase. For instance, a Starbucks coffee habit will cost a lot of money in the long run. It's easy to think about how much that money could have compounded in a stock portfolio, but high earners can ask themselves if Starbucks coffee makes them happy each day. They can afford it, but by purchasing that coffee, they are saying no to other expenses or their portfolios. High earners don't have to operate under shoestring budgets. However, some items are more valuable than others, and any big purchases will slow down your path to financial independence. While a Starbucks coffee habit is a classic example, high earners may also consider luxury cars and other expensive items. Just because you can afford something doesn't mean you can buy it. Knowing an item's utility and how it will make you feel can help you decide if it's worth the purchase or if it makes more sense to move closer to financial independence with good investments. Read Next:Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article A Family That Earns $300,000 Per Year Asks For Some Budgeting Advice: 'Our Spending Has Always Been The Killer' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
27-05-2025
- Business
- Yahoo
A Guy With $500,000 Wonders If It's Worth Buying A House With Cash To Be Debt-Free: 'Friends And Family Are Telling Me That It's A Bad Idea'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Should you buy a house with cash or take out a mortgage? Not everyone has that option, but it is a fascinating question for people who have enough cash. A single guy recently posted this question in the HENRY finance community. HENRY stands for "High Earner Not Rich Yet," and it attracts many people who take their finances seriously. The original poster has $500,000 in cash and is wondering if it makes sense to pay for a new house in cash. "Friends and family are telling me that it's a bad idea," he stated. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – It's important to note that he doesn't only have $500,000 in cash. The young man also has a $330,000 condo that he's going to sell. He also has a $1.2 million brokerage account and earns $15,000 per month at his job. Furthermore, his franchise investments generate $5,000 per month. These are some of the important points commenters brought up when debating if it makes sense to buy a house with cash or take out a mortgage. Mortgage rates are a critical part of the conversation. If you could go back in time and get a mortgage rate of 2% or 3%, then it doesn't make much sense to buy a house with cash. It's easy to generate a return that's higher than 3% without taking excessive risk. However, current mortgage rates hover closer to 7%. Higher rates justify making a cash offer on a house or bumping up your down payment. The only way to justify taking out a mortgage instead of paying with cash is if you can generate a higher return than the interest rate. It's more difficult to consistently deliver annual returns above 7%, so a cash offer may make more sense. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — One commenter also paid for the entire house in cash but stated that there are more expenses associated with being a homeowner. Having to keep up with property taxes, home maintenance, insurance, and other home expenses has made the commenter feel like they don't really own the place. The same commenter proceeded to say that owning a house is still a cash drag, even after skipping a mortgage. Now, the individual is considering downsizing so they can put more money into the stock market. The individual has made it clear that they regret paying off the mortgage instead of using the funds elsewhere. Running the numbers can help you gauge if it makes more sense to take out a mortgage or make a cash offer. If you compare the mortgage rate to the stock market's recent returns, then it often makes more sense to use a mortgage instead of paying in cash. , For instance, the Vanguard S&P 500 ETF (NYSE:VOO), a fund that uses the S&P 500 as a benchmark, has delivered an annualized 12.8% return over the past decade. That's a higher return than the mortgage rate, and it's also likely to outperform your home equity's growth rate. Most real estate properties don't grow like the stock market. You typically have to be near or in a big city to have the chance of seeing double-digit appreciation each year with your real estate holdings. Meanwhile, you can easily generate that return with the S&P 500. If you're willing to take some more risk with the Invesco QQQ Trust ETF (NASDAQ:QQQ), you would have ended up with an annualized 17.5% return over the past decade. This index follows the Nasdaq 100 and has delivered enticing long-term returns for investors. It's easier to justify taking out a mortgage when you think about how your extra cash could grow in a fund like VOO or QQQ instead of sitting in your property as home equity. Read Next: Invest Where It Hurts — And Help Millions Heal: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article A Guy With $500,000 Wonders If It's Worth Buying A House With Cash To Be Debt-Free: 'Friends And Family Are Telling Me That It's A Bad Idea' originally appeared on
