If you’re on social media or keep up with the financial news, you may be familiar with the term “HENRY” – standing for “high earner, not rich yet”.

It describes those who earn a higher-than-average income (typically €100,000 a year or more) but would not consider themselves wealthy.

There’s plenty to explore on this topic, so let’s dive right in.

3 ways to figure out if you’re a HENRY

A high salary doesn’t always translate to financial stability. Here are three telltale signs that you or a loved one might be a HENRY.

1. Your lifestyle rises to match your earnings

For many, reaching a certain earnings threshold is a career highlight. Whether you have reached the point where you can extract six figures from your business comfortably each year, or have climbed the ladder as an employed professional, you should be very proud of what you have achieved.

This said, if your expenditure always rises when your income does, it’s unlikely you will have the means to build wealth.

For instance, if you receive a €20,000 pay rise (a large portion of which may be eaten up by tax) and decide to finance a luxury car for €650 a month (€7,800 a year), almost all of your pay increase is already spoken for.

The intention here is not to shame luxury spending. But finding a compromise and using some of the above monthly car payment to boost your pension or savings, while still finding a car you enjoy driving, is an example of enjoying your lifestyle while building wealth as your earnings rise.

2. You live well today, but don’t have a retirement plan

Keeping up with the Joneses is a challenging task in today’s world. Social media has taught many of us that the image you project is more important than the reality of your life.

So, it’s understandable if you have been prioritising living a luxurious lifestyle over building wealth for retirement. How you spend your money is your choice after all.

Nevertheless, as you age, the importance of a robust retirement plan may come into focus.

September 2025 research from the Competition and Consumer Protection Commission (CCPC) found that:

• A quarter of Irish adults still don’t have a retirement plan in place, including 21% of 45- to 54-year-olds.
• A third of pension holders regret not contributing sooner.

The key is not to sacrifice everything you earn and put off living a good life until retirement, but rather to balance enjoyment with providing for your future self.

3. You’re only a few missteps away from financial instability

A job loss. An illness. An unexpected home repair. These instances can’t usually be predicted, but they happen to people like you every day.

If you’re a high earner, you might assume you would be able to handle such an event without going into debt or emptying your savings. Look closer, and you could discover you’re a HENRY with many financial ties and little room to handle big expenses.

Your habits matter, regardless of what you earn

The big question HENRYs need to ask themselves is: “What needs to change?”

The answer usually lies within that person’s financial habits. As we discussed in a previous article, those with solid habits are usually better equipped to build wealth than those who fritter away their income, even if this income is substantial.

There’s more than one way to instil good financial habits and begin building wealth. Here are a few ideas to get you started:

• Start with a plan and work backwards. What are your goals for the future? Do you want to retire at a certain age, or offer a specific amount to your children to help them purchase their first home? Carve out a long-term plan and use it as your driver when you’re tempted to push your budget to the limit.
• Learn the 50/30/20 rule. This rule suggests that 50% of your after-tax income should be allocated to essentials, 30% can be spent on “wants”, and 20% is allocated to debt repayment, saving, and investing. It’s not a catch-all that works for everyone but provides a basis to work from.
• Pay your future self first. This means investing in your future before deciding how to spend money in the here and now. When you receive your pay, it helps to allocate a portion to savings and investments (this could include your pension) immediately.
• Automate your savings and investments. Modern financial systems have made it possible to automate your savings, investments, and debt repayments. Taking the time to set these up means you can passively build wealth while focusing on the enjoyable areas of your life.

These are just a few standard tips to get you started. It’s worth examining your existing outgoings, seeing where you could cut back, then forming a bespoke plan that suits your lifestyle and goals.

Bespoke financial planning for professionals and business owners

There is no shame in being a HENRY – but if you want to build wealth you can rely on in future, our financial planners can give you the guidance you need.

We will learn about the kind of life you want to lead, figure out what your priorities are, and design a future-proof financial plan with all this in mind.

Email us at clients@iqf.ie, or call +353 71 915 5560.

Please note

This article is for information only. It does not constitute advice.

It describes financial planning services that iQ Financial can offer to you. Financial planning services are not regulated by the Central Bank of Ireland.

iQ Financial is not a tax adviser and tax advisory services are not regulated by the Central Bank of Ireland.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.