Alex, 34, is a marketing director at a fintech company in New York. His and his wife's combined income reaches 450,000 USD annually, five times the average for an American household.

However, Alex admits this income does not bring them peace of mind. They still dream of owning a home while renting an apartment in Brooklyn Heights for 6,500 USD per month. "I earn more money than both my parents combined, but sometimes I still feel like I'm living paycheck to paycheck", he says. His dream is to have one to two million USD in net worth.

Alex is not alone. About 14% of American households earn 200,000 USD or more, but high salaries do not always equate to substantial wealth. Experts call them HENRYs: High Earners, Not Rich Yet.

Marie Incontrera inside her apartment in Manhattan, New York, US. *Photo: CNBC*

Marie Incontrera, 39, is another example. She transitioned from a composer earning 15,000 USD to launching a virtual assistant service. The pandemic helped her company thrive, bringing Marie a personal income of 300,000 USD annually. "When I was young, I thought this much money meant complete success. But now, I worry about money even more than when I was 20", she shared.

According to psychologist Sabrina Romanoff, rising living costs, debt burdens, and especially "lifestyle inflation" (where spending immediately increases with income) have pushed HENRYs into financial constraints. A BHG Financial survey shows that 62% of people earning over 300,000 USD still struggle with credit card debt. Americans now believe they need to earn 520,000 USD to be truly considered rich.

Kamila Elliott, CEO of Collective Wealth Partners, notes that the core reason is high-earning young individuals allocating their funds to too many luxury goals simultaneously.

"You cannot prioritize luxury travel, five-star dining, and designer shopping while also wanting to save for retirement or buy a home", Elliott stresses.

This expert advises HENRYs to build budgets based on their priorities. If family is the number one priority, allocate funds to children's education instead of constantly upgrading to new cars. Additionally, each individual needs to closely monitor their net worth (total assets minus liabilities) quarterly. Only by seeing their accumulated wealth grow can they escape the anxiety of living paycheck to paycheck.

Ngoc Ngan (According to NY Post, CNBC)