Accounting & Finance

Are you a HENRY or MIRIAM? How to Know The Difference

Discover whether you’re a part of the spendthrift HENRY club or the saving MIRIAM club.

7 min Read
April 15, 2024

Author

Escalon

We’ve introduced you to HENRY before, the 30-year-old with a cushy job, chunky paycheck, and a lifestyle that’s all about the here and now. But there’s a catch. Despite the flashy car, plush apartment, and happening social life, HENRY’s bank balance is always on the brink, with just $ 40 left at the end of the month. Now, let’s meet MIRIAM, the polar opposite of HENRY.

Now, let us introduce you to MIRIAM. A MIRIAM, or someone with a Modest Income who regularly Invests and is Motivated, is a Type A personality who may not have the trendiest car, shoes, bags, or hefty paycheck but has a plan—a plan crafted carefully to ensure a safe and secure future. It is a plan driven by motivation and perseverance to elevate their lifestyle one step at a time, offering a sense of security and peace of mind that is invaluable in today’s uncertain financial landscape.

It’s a classic case of slow and steady wins in the race V/S skating on thin ice.

So, which one are you? HENRY or MIRIAM? Let’s take a look.

Who is HENRY?

If you have a high household income with little to no savings and spending budgets that skyrocket daily, then let us say hello. Hello, HENRY, you are a high earner, not yet a rich fellow.

You’ve got the income and the high-paying job, but your net worth is next to pennies. It’s because you’ve been spending too much, haven’t you? You’ve been spending on consumer goods, rent, education, and those extravagant holidays. Now you’ve got nothing for when your hair turns gray, a situation that could potentially leave you vulnerable and unprepared for the future.

Who is MIRIAM?

You’re probably hearing this term for the first time, so let’s get acquainted, shall we?

Meet MIRIAM, a person with Modest Income who Regularly Invests And is Motivated.

You probably don’t earn as much as HENRY does. Still, you tend to keep aside a small amount every month, investing it, saving it, and ensuring you have that emergency fund to fall back on when it gets rough. You’re undeterred by the market, chartering the highs and lows with gumption. Irrespective of a stock crash or reverse market crash, you’re unaffected and a patron of the dollar cost-averaging club. This approach empowers you, giving you control over your financial future and inspiring you to continue on this path.

Talk to us about how Escalon’s FinOps can help you gain financial insights to make informed decisions.

Now, what is a dollar cost-averaging club?

It isn’t an actual club that offers membership. Instead, it is a principle that focuses on regularly investing a fixed amount of money, irrespective of what may or may not happen in the market or whether the share price is up or down. It is an attitude and way of life that involves investing in the future rather than blowing up dollar bills to have fun tonight. (Thank you, Sia.)

To cut a long story short, MIRIAM, you channel your inner main character energy, work hard like a boss, and save as much as possible. You’re mindful about where you spend your money and gradually upgrade your lifestyle as the years go by and your disposable income rises.

How do we know the difference?

The Classic Traits Associated With Being HENRY

You’re a spendthrift

Carefree as can be—that’s you, and we’re talking about you, HENRY. You’re in your 20s and spending money on all the good things in life. Your attitude pushes you toward purchasing luxurious and expensive items. You want to fit in, attend every party, and spend money on unnecessary indulgences.

You earn significantly more than most people

You earn considerably more money than most people your age. You have a great job that gives you a hefty paycheck at the end of every month, giving you an illusion of wealth. This wealth pushes you into a lifestyle creep cycle wherein you believe you have all the financial means you need to spend on lavish items, leaving you with little to nothing in your bank account at the end of every month.

You have little to no savings

Spend, spend, spend. That’s what you do, HENRY. You think about spending your money now rather than setting aside a bit for later. You’ve got those larger-than-life interests, and while you enjoy living life king-size, you often forget that you need to put some money aside to account for unforeseen circumstances lurking around the corner.

You live in the now

You live now and don’t think about what will come later. You’re more interested in having an enjoyable moment than saving for a rainy day. You want it all, and you want it now. You don’t have the long-term vision to build sustainable wealth that’ll remain with you in the long term.

The Classic Traits Associated With Being MIRIAM

You invest your money wisely

You’ve got that paycheck, and you’re paying yourself first. You aren’t waiting until the end of the month to invest or save whatever little you’re left with. Instead, you’ve got that saving first attitude, wherein as soon as it’s payday, you take out a chunk of money, little or large, and put it aside into stocks, mutual funds, and investments that will show returns in the future.

You have a modest income

You’re probably at a regular job that pays you enough to get by, MIRIAM. Still, you know the importance of having that job and the money that you make. You have enough to live a content life and do it within your means.

You believe in saving money

MIRIAM, if there is one thing you know, it is the importance of saving money. You may earn a modest income, but that does not prevent you from setting aside a small monthly amount as savings. Whether it’s $5 or $50, you invest a bit of your income regularly toward a sustainable and secure future fund to fall back on.

You have a long-term vision

While you know how to enjoy the now, you do so within your means. You have a well-defined goal, a game plan, and a blueprint for a safe future. You want the good things in life but at the right time. You may buy that house, but not at the cost of compromising your savings. You are aware of the curveballs life could throw at you and tread the path with caution, walking with a ‘prevention is better than cure’ attitude, ensuring you budget, save, account for, and invest your money wisely to retire in peace ultimately.

The Key Takeaway:

Just because you’re a HENRY now doesn’t mean you don’t have it suitable; however, being a HENRY does not paint an accurate picture of your financial health. You might believe that you’re rich now. Still, you may need more money to support a catastrophic monetary crisis in the future, for you’ve forgotten to save up.

What’s important is to ask yourself whether you’re on the path to becoming a HENRY. Once you check in with yourself and realize the pattern, take active steps to change your attitude. If you’re a HENRY with a MIRIAM attitude, you could be wise and wealthy in no time. And suppose you need help figuring out where to begin. In that case, you can always seek financial assistance from a professional advisor or financial expert. Remember, there is always time to get started.

Want to know more? In addition to taxes, accounting, bookkeeping, and CFO services through its FinOps, Escalon’s Essential Business Services include PeopleOps (HR, benefits, recruiting, and payroll) and Risk (business insurance). Talk to an expert today.

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal, or accounting advice in this article. If you would like to engage with Escalon, please get in touch with us here.

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