The economy has put different classifications to consumers. One famous demographic nowadays is the HENRY (High Earner, Not Rich Yet). This is the working-class group that earns a six-figure income but is prone to a lavish lifestyle. Do you think that you or anyone you know is a HENRY? Here are ways to find more financial freedom.
Think Long Term
One characteristic of the HENRY is living in the now. Break free from this mindset by thinking long term. Do away with the luxurious weekend in a hotel. Instead, invest in home maintenance like professional gutter cleaning. Aside from it being more affordable, the benefits will prove to be more lasting.
Are you tempted to splurge on a fine-dining experience that will burn holes in your paycheck? Buy some high-grade kitchen appliances instead. This purchase will serve you with more delicious and healthier foods for the years to come.
A HENRY should realize that luxury spending is only temporal. They should learn to establish more stability in where they put their money.
Avoid FOMO, Embrace JOMO
One reason why a HENRY loves to spend is to keep up with the trends that social media platforms are promoting. Some of which are a carefree lifestyle and amassing expensive material things. These trends show that one needs to be everywhere to experience “life.” This generation of spenders develops a fear of missing out on the good stuff.
But one has to sit down and take a hard look at life. Ask yourself, “What will I miss out on if I start to spend less on these trendy things and activities? Will my life hold less meaning without them?” When you find the answers to such questions, you can start adopting the joy of missing out. With lesser unnecessary expenses, you will see a big difference in your finances.
Practice Mindful Spending Habits
One way to reduce the mindless spending habits of a HENRY is to focus on the “Not Rich Yet” part of the equation. If one keeps up with the “one-day millionaire mindset,” their wealth will never reach the best level. Do not fall into the trap of earning a paycheck, spending it all, and feeling broke after.
Mindful spending habits are simple. It can start by making a budget and tracking your expenses. These tasks are easy with the many available apps that serve such purposes. Another excellent spending habit is exercising delayed gratification. Organizing your finances does not mean depriving yourself altogether. It could mean saying no to present wants for you to enjoy something more in the future. For example, say no to partying all weekend in high-end bars. Save up for a grand vacation that will bring you fuller experiences instead.
Seek Professional Advice
It is safe to admit that financial literacy is something that does not come easy for everyone. If you are among this group, it is not a sign of weakness to ask for help. Well-trained financial advisors can help you have clearer financial goals. Also, they can help you with legal items such as taxes. Bringing an expert will give you peace of mind. You know that you are investing and putting your hard-earned money where it should be.
A high-earning job is not a license for one to be careless on spending. On the contrary, having an opportunity to earn big should make one wiser on saving and growing their wealth.