I discovered the term HENRY (High earner- not rich yet) the other day and I think it is an important concept. There is a huge gap between a young person with a high income and being wealthy! I think the common definition of HENRY is a little restrictive though (most articles say it is for families earning $250k or more, but I think it can be quite a bit lower).

The misconception is harmful from two sides; there are high earning young people who live like they are wealthy, and then there are those who assume high earning young people are rich, even though they haven't had time to accumulate wealth yet. If you are a high earning professional, you might spend your 20s and early 30s paying off debt. It could be years of earning a high income just to pay off student loans and achieve a positive net worth, but your prospective wealth is completely tied to a monthly paycheck. Meaning you could spend 5-10 years paying off loans, then if you lose your job you would have no wealth and no income!

Understanding the difference between the super wealthy (who make money with their money) and wealthy professionals (who make money with their paycheck), AND understanding the different stages of life for a wealthy professional is important!