Many high earners feel financially exposed despite impressive incomes, falling into a category known as HENRY (High Earner, Not Rich Yet). Housing, childcare, loans, and lifestyle expectations eat up much of their income, leaving little for savings or investing. Without a clear financial plan, wealth-building becomes a challenge.

The HENRY problem stems from high fixed expenses, lifestyle creep, and a lack of financial structure. As income rises, so do expectations, making it difficult to prioritize savings over immediate comfort. Without a coordinated plan, even six-figure earners struggle to build wealth or feel financially secure.

To combat the HENRY dilemma, focus on understanding net worth, tracking cash flow, and establishing clear financial priorities. Setting limits on lifestyle inflation, paying down debt, and utilizing tax-advantaged accounts can help shift the trajectory toward wealth accumulation. Seeking guidance from a financial advisor may provide the structure and accountability needed to achieve financial goals.

Transitioning from being a high earner to building lasting wealth requires intentionality and a well-defined plan. By redirecting income towards investments, setting boundaries on spending, and building emergency savings, HENRYs can create a more secure financial future. Finding the right financial advisor through tools like SmartAsset can be a crucial step towards aligning income, debt, and long-term goals for financial success.

Read more at Yahoo Finance: You Make Six Figures but Feel Broke — You Might Be a HENRY