I Earn $260K as a CEO—Still a HENRY

I Earn Over $260,000 as a CEO, But I'm Still a HENRY: Why Big Titles Don't Always Mean Big Wealth

Imagine this: You're the CEO of a mid-sized tech firm,

pulling in over $260,000 a year. On paper, you're living the dream—fancy title, corner office, and a salary that puts you in the top 5% of earners in the US. But at the end of the month, after taxes, mortgage payments on your upscale home, private school fees for the kids, and that weekend getaway to unwind, you're barely breaking even. Savings? Minimal. Investments? Just enough to satisfy the minimum 401(k) contribution requirement. Welcome to my world—I'm a classic HENRY, and if you're a high earner feeling the pinch, you're probably one too.

In this post, we'll dive deep into what it means to be a High Earner, Not Rich Yet (HENRY), why even CEOs like me aren't automatically wealthy, and how to flip the script. I'll share real stats, practical examples, and actionable advice to help you build lasting wealth. Whether you're climbing the corporate ladder or already at the top, understanding this could be the key to financial freedom. Let's break it down.

What Does HENRY Mean?

HENRY stands for "High Earner, Not Rich Yet." It's a term that describes people who make a lot of money—typically between $250,000 and $500,000 annually—but haven't built up significant assets or wealth. Coined back in 2003 by Fortune Magazine writer Shawn Tully, it originally highlighted families in that income bracket who were hit hard by taxes and high living costs, leaving little for savings.

Today, HENRYs are often young professionals in their 30s or 40s, like doctors, lawyers, engineers, or executives, with six-figure salaries but low net worth. Why? Their money goes toward lifestyle expenses, debt (think student loans averaging $80,000 for many HENRYs), and the pressure to "keep up appearances." For instance, a millennial HENRY in a big city might earn $300,000 but still live paycheck to paycheck due to rent, luxury goods, and social media-fueled spending.

Characteristics of a HENRY include:

High discretionary income but minimal investments or savings.
Vulnerability if income stops— they're "working rich," not asset-rich.
Often targeted by luxury brands like Louis Vuitton for their aspirational buying habits.

If this sounds familiar, you're not alone. Many HENRYs are on the path to wealth but get stuck in the cycle of earning and spending. The good news? With smart changes, you can transition to true riches.

(For more on financial acronyms and what they mean for your wallet, check out our related article: [Understanding Financial Terms for Busy Professionals]. External resource: Investopedia's full guide on HENRYs.)

The Reality of CEO Salaries in 2025

You might think CEOs are swimming in cash, but the truth is more nuanced. In 2024 (the latest full-year data available in mid-2025), the median total compensation for S&P 500 CEOs hit $17.1 million, up 9.7% from the previous year. That sounds huge, but it's skewed by mega-corporations. For smaller or mid-sized companies, average CEO pay is closer to $174,663 to $750,000, depending on firm size.

Take startup CEOs: In 2025, their average salary rose 14% to $161,000, reflecting better fundraising but still far from Fortune 500 levels. For someone like me at a growing firm, $260,000 is solid—but after deductions, it's not the windfall it seems.

Compare that to worker pay: The median employee at these companies earned $85,419 in 2024, highlighting the gap. Yet, even at the top, wealth isn't guaranteed. Big titles come with big expectations: networking events, travel, and maintaining an executive image eat into that salary fast.

(Internal link: Read our piece on [Salary Negotiation Tips for Executives] for ways to boost your take-home pay. For additional CEO data, see AFL-CIO’s 2025 Executive Pay Watch.

Why High Income Doesn't Translate to Wealth

Earning big doesn't mean you're wealthy—wealth is about net worth, not just income. Many high earners fall into traps that keep them from building assets. Let's explore the main culprits.

Lifestyle Inflation: The Silent Wealth Killer

Lifestyle inflation, also known as "lifestyle creep," occurs when your spending increases alongside your income, transforming former luxuries into perceived necessities. For example, as a new CEO, I upgraded from a modest sedan to a luxury SUV, thinking I "deserved" it. Suddenly, gas, maintenance, and insurance costs ballooned.

Common examples include:

Upgrading from a shared apartment to a solo luxury condo following a promotion.
Switching from home-cooked meals to frequent fine dining or food delivery.
Buying designer clothes or gadgets to match your "status."

This isn't harmless— it delays goals like retirement or home ownership. One study shows delayed financial milestones are a direct result. To avoid it:

Track your budget post-raise and allocate 50% of the increase to savings.
Automate transfers to investments.
Focus on experiences (like a family hike) over stuff.

(Internal: Our guide to [Beating Lifestyle Creep on a Budget]. External: Investopedia on lifestyle inflation.)

Skyrocketing Cost of Living in Major Cities

Living in hubs like New York or San Francisco? Your $260K shrinks fast. In 2025, the most expensive US places include Newport Beach, CA (top-ranked), followed by Westminster, CA, and Daly City, CA. Number's mid-2025 index shows high costs in cities like Minneapolis (68.9) and Atlanta (68.8), but coastal areas top the list.

A single adult needs at least $85,000 for comfort in major cities; for a family of four, it's nearly double. Housing alone devours 34.9% of US household spending, averaging $1,784 monthly.

Practical example: In NYC, a CEO's salary covers a nice apartment, but add kids' tuition ($50K+ yearly) and it's tight. Move to a lower-cost area like Houston, and that $260K stretches further.

Actionable advice:

Use a cost-of-living calculator before relocating.
Downsize housing or commute from suburbs.
Negotiate remote work to live affordably.

Taxes, Debts, and Other Financial Drains

High earners face steep taxes—up to 37% federal bracket for incomes over $260K—plus state taxes. Add student loans (average $80K for HENRYs), mortgages, and credit card debt, and wealth evaporates.

Example: A CEO with $100K in student debt pays $1,000+ monthly, delaying investments. High-interest credit cards compound the issue if used for lifestyle perks.

To combat:

Maximum retirement contribution: $23,000 to a 401(k) in 2024, fully tax-deductible.
Consolidate debts for lower rates.
Work with a tax advisor for deductions.

(Internal: [Tax Strategies for Six-Figure Earners]. External: CNBC on high earners' financial fragility.)

Shocking Statistics: High Earners Living Paycheck to Paycheck

In 2025, 57% of Americans live paycheck to paycheck, and this trend affects more than just low-income earners. Half of those earning $100K+ are in the same boat. Breakdowns:

By age: 72% of Gen Z, 65% of millennials.
By gender: 61% women vs. 54% men.
Parents: 64% with kids at home.

Over 20% of $150K+ households live this way, per Bank of America. Why? Lifestyle inflation and costs outpace income growth.

These statistics reveal that even high earners aren’t immune—over half of six-figure earners report feeling “broke.”

(Internal: [Stats on American Financial Health]. External: MarketWatch's 2025 survey.)

My Journey as a HENRY CEO

Let me get personal. Five years ago, I landed my CEO role at a SaaS company, jumping from $150K to $260K. Excited, I bought a house in a trendy suburb, enrolled my kids in private school, and joined a country club. Vacations upgraded from road trips to international flights. But soon, I was dipping into savings for "emergencies" like car repairs.

Net worth? Under $500K, mostly in home equity. I was a textbook HENRY—high income, low assets. The turning point: A financial planner showed me my spending patterns. I cut back on dining out (saving $500/month), automated investments, and refinanced debt.

Today, my net worth is climbing, but it took discipline. If you're in this spot, know it's fixable.

Practical Steps to Break Free from the HENRY Trap and Build Lasting Wealth

Ready to change? Here's how high earners like us can build real wealth.

Create a Bulletproof Budget

Start with tracking: Use apps like Mint to log expenses. Aim for the 50/30/20 rule—50% needs, 30% wants, 20% savings—but adjust for high income (e.g., 40/20/40).

Examples:

Cut subscriptions: I canceled unused streaming services, saving $100/month.
Set spending caps: Limit dining to $300/month.

Action: Review your budget quarterly.

Maximize Savings and Investments

Save first: Automate 15-20% of income to high-yield accounts or investments. For 2024, max 401(k) at $23,000 and IRA at $7,000.

Diversify:

Stocks/ETFs for growth.
Real estate via REITs.
Side hustles: I started consulting, adding $20K/year.

Tax tips: Use backdoor Roth IRAs if phased out of traditional ones.

Build an emergency fund: 6 months' expenses.

(Internal: [Investing Basics for Executives]. External: Ramsey Solutions on high-earner investments.)

Avoid Common Pitfalls

Skip lifestyle creep: After raises, save half the increase.
Pay off debt aggressively: Focus on high-interest first.
Plan for taxes: Work with pros for strategies like charitable donations.
Build multiple streams: Investments, rentals, or businesses.

Hire experts: A financial advisor can tailor plans.

Conclusion: From HENRY to Wealthy—It's Possible

Being a CEO earning $260K+ is great, but without intentional steps, you'll stay a HENRY forever. A high income is a tool, not synonymous with wealth. By curbing lifestyle inflation, managing costs, and prioritizing savings, you can build a net worth that outlasts your job.

Don't wait—start today. Track your spending, max your investments, and seek advice. Your future self will thank you.

Call to Action: Subscribe to our newsletter for more wealth-building tips. Share your HENRY story in the comments—what's your biggest challenge?

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