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You're making $150,000+. Your LinkedIn looks impressive. Yet somehow, you're staring at credit card statements wondering how someone this "successful" can feel this financially stressed.

As a HENRY (High Earner, Not Rich Yet), you've likely discovered that high income doesn't automatically translate to wealth, especially when debt enters the equation.

The HENRY Paradox

Here's what nobody tells you about earning six figures: Your expenses scaled faster than your income did. The apartment in the "right" neighborhood. The wardrobe that fits the role. The lifestyle that somehow became non-negotiable. Meanwhile, you're carrying $45,000 in student loans, $18,000 in credit card debt, and telling yourself it's fine because "you can afford the payments."

But you're optimizing for cash flow when you should be optimizing for net worth.

The Real Math

Making $175,000? After taxes, retirement, and insurance, you're looking at ~$9,000 monthly take-home. Subtract rent ($3,500), student loans ($1,200), credit minimums ($600), car payment ($800), and living expenses ($2,900)… you're left with almost nothing. One unexpected expense, and you're adding to that credit card balance.

This is the "golden hamster wheel" where you’re always running faster but never getting ahead.

Your Strategic Playbook

1. The Reverse Avalanche Yes, prioritize high-interest debt, but also knock out one small balance quickly for psychological momentum. You need wins to stay motivated.

2. Weaponize Your Income Your earning power is your superweapon. Negotiate a raise (I’ve seen people do this and add $1,000+ monthly toward debt). Even one consulting/side-hustle gig could eliminate a small debt entirely.

3. The 70/30 Reset Cut lifestyle spending by 30% for 18 months. The jump from $3,000 to $4,000 monthly discretionary spending barely improves life quality, but that $1,000 redirected pays off $18,000 yearly (including interest savings).

4. Optimize Everything

• Refinance student loans

• Use 0% balance transfers strategically

• Negotiate rent, insurance, everything (it might feel tedious but high earners often leave thousands on the table here)

5. The Emergency Fund Debate Controversial: With stable W-2 income, you might not necessarily need to first focus on 6 months of expenses while carrying 24% APR debt. Obviously run the numbers for yourself but in some cases, having $5,000-10,000 liquid could help you attack debt much more aggressively.

The Mindset Shift

At the end of the day, you're not "cutting back”, you're buying freedom. Every $1,000 toward debt purchases future optionality.

Want to take that startup role? A sabbatical? Actually feel rich? That requires being debt-free.

And remember: Being a HENRY isn't a permanent condition. It's a temporary state on the path to actual wealth… but only if you treat it that way.

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If you want more resources on building wealth as a solopreneur/entrepreneur, check these out:

• The Solo 401k handbook

• The Roth IRA handbook

• The Self-Directed IRA handbook

• The Guide to Paying Less in Taxes

• What is a Solo 401k?

• How to Open a Solo 401k