A growing number of professionals in the United States report feeling financially insecure, even with annual incomes exceeding $300,000. Rising living costs, increased debt levels, and lifestyle-related expenses are contributing to a sense of financial strain, despite salaries that place individuals among the country’s highest earners. Data from the 2023 US Census shows that around 14% of US households earn $200,000 or more annually. However, many within this income bracket do not perceive themselves as wealthy, falling into a category referred to by financial experts as “HENRYs”—high earners, not rich yet.Debt and limited financial freedom among high earners According to a survey by BHG Financial, nearly 62% of people earning over $300,000 per year report struggling with credit card debt. CNBC cited this figure, highlighting how expenses often outpace income, even at higher salary levels. Other reports referenced by CNBC found that many six-figure earners continue to live paycheck to paycheck. Clinical psychologist Sabrina Romanoff told CNBC, “Earning doesn’t actually make you feel rich; spending it does.” She added that the difficulty lies in being in a constant mode of accumulation, which prevents individuals from experiencing a sense of financial fulfilment.Key income statistics and financial insights among high earners in the US
Changing benchmarks for feeling wealthy A 2024 survey conducted by Bankrate, as referenced by CNBC, revealed that Americans believe they need to earn $520,000 annually to feel rich. This figure increases in line with income level. Respondents earning under $50,000 said they would need $157,000 annually to feel comfortable, while those making at least $100,000 cited a requirement of $246,000. These findings indicate that income alone is not a clear indicator of perceived financial wellbeing, and expectations rise with earnings.Income growth and continued anxiety Marie Incontrera, aged 39, shared her experience with CNBC. She began her career as a professional musician, earning just $15,000 per year, despite performing at prestigious venues such as Carnegie Hall. In 2016, she transitioned into entrepreneurship by launching a virtual assistant business, which she later expanded into a digital marketing consulting agency. Incontrera told CNBC that she anticipates business revenue of $1.4 million in 2025 and expects to draw between $300,000 and $400,000 that year. However, she stated, “I have more money anxiety, almost, now than I ever did in my 20s.” She explained that while she feels fortunate and privileged, she does not feel rich and described being in a constant state of work.Financial planning and budgeting challenges Kamila Elliott, CEO of Collective Wealth Partners and member of the CNBC Financial Advisor Council, told CNBC that many high-income individuals feel constrained due to a lack of discretionary income. She said, “A budget should be a representation of your values,” and emphasised that individuals must prioritise specific areas of spending and allocate the remainder towards savings to improve their financial outlook.TOI Education is on WhatsApp now. Follow us here.
