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I’m a HENRY financial planner who makes $125,000. Here’s how I manage my money — and the mistakes I see others making.<!-- wp:html --><p>Georgia Lord is saving for a wedding, travel, and a bigger apartment.</p> <p class="copyright">mikroman6 / Getty Images</p> <p>Georgia Lord, a HENRY and financial planner, earns a salary of $125,000 but doesn't feel wealthy.Lord's financial goals include early retirement, travel, a wedding, and a larger NYC apartment.She warns HENRYs against investing without knowledge and recommends financial planning for everyone.</p> <p><em>This as-told-to essay is based on a conversation with Georgia Lord, a 27-year-old certified financial planner and HENRY in New York City. It has been edited for length and clarity.</em></p> <p>I studied finance and started my career in Brisbane, Australia.</p> <p>When I was 22, I moved to New York to join Morningstar in the credit ratings division. I pivoted to financial planning for a Canadian Fintech called Wealthsimple a year later.</p> <p>Georgia Lord.</p> <p class="copyright">Courtesy of Georgia Lord</p> <p>I discovered that I love financial planning and working one-on-one with clients. Last year, I got my <a target="_blank" href="https://www.businessinsider.com/personal-finance/cfp" rel="noopener">certified financial planning license</a>.</p> <p>I now make a comfortable living, but I consider myself <a target="_blank" href="https://www.businessinsider.com/henrys-six-figure-income-inflation-childcare-economic-pinch-2023-11" rel="noopener">a HENRY</a> and have a way to go before I hit my goals.</p> <h2><strong>I make 6 figures but don't feel wealthy</strong></h2> <p>I earn a base salary of $125,000 and manage to <a target="_blank" href="https://www.businessinsider.com/moving-midwest-to-nyc-surprises-2023-12" rel="noopener">live in New York City</a> by being frugal. I love a bargain or a sale. I save for certain things I want, and I'm good at it because it's my job. I'd feel like a hypocrite if I didn't do what I told others to do.</p> <p>I save on my <a target="_blank" href="https://www.businessinsider.com/tkts-booth-is-a-ripoff-2015-6" rel="noopener">Broadway tickets</a> by entering into the lottery. I splurge on some things — I spend around $600 monthly on dining out. I also travel a lot, so I automate a certain amount of money every month for travel.</p> <p>I lived with roommates for four years, and I've lived with my boyfriend for the last year. We split the rent more favorably to me since he makes quite a lot more, so I contribute $1,500 per month. That's also been helpful for managing my finances.</p> <h2><strong>I have a few financial goals</strong></h2> <p>One of my financial goals is to save up for the professional designations available in my field since they can be expensive.</p> <p>I want to <a target="_blank" href="https://www.businessinsider.com/personal-finance/how-much-money-need-to-retire-early-at-35-2019-8" rel="noopener">retire early</a>, and I want to keep prioritizing saving for travel and visiting my home in Australia, which is not cheap.</p> <p>I'm also saving for a wedding and improving cash flow to move into a larger apartment.</p> <p>To reach my savings goals, I automate at least 20% of my paycheck every two weeks and deposit it in a <a target="_blank" href="https://www.businessinsider.com/personal-finance/best-high-yield-savings-accounts-rates-right-now" rel="noopener">high-yield savings account</a>. I use Wealthfront but also like Ally, CapitalOne360, and Betterment. I preach that to all of my clients who are <a target="_blank" href="https://www.businessinsider.com/what-is-a-henry-millennials-earning-six-figures-feel-broke-2019-11" rel="noopener">HENRYs</a>: Automate your savings for big goals.</p> <p>There's not a number in mind that I'm looking to reach to feel rich, but I will feel successful if I can achieve my goals without sacrificing my lifestyle in the process. Being in a great financial position today and in the future is what I consider rich.</p> <h2><strong>I see HENRYs making one big mistake</strong></h2> <p>Because <a target="_blank" href="https://www.businessinsider.com/stock-market-nvidia-finance-apple-microsoft-investing-news-housing-2023-5" rel="noopener">the market did well in 2023</a>, I've noticed HENRYs (both in my personal life and those I see as clients) wanting to <a target="_blank" href="https://www.businessinsider.com/personal-finance/how-to-invest-in-stocks" rel="noopener">throw money into it</a> without thinking about how they will fund other goals, like a down payment for a house.</p> <p>Not only is it harder to access funds once they're invested, but there can also be financial benefits to other strategies. For example, some stock market returns might've been 3% last year, but some <a target="_blank" href="https://www.businessinsider.com/personal-finance/5-percent-interest-savings-accounts" rel="noopener">high-yield savings accounts</a> have a return of 4.5%.</p> <p>I still invest in the market, but I do so strategically. I have a <a target="_blank" href="https://www.businessinsider.com/personal-finance/401k-contribution-limits" rel="noopener">401(k)</a>, <a target="_blank" href="https://www.businessinsider.com/personal-finance/what-is-roth-ira" rel="noopener">Roth IRA</a>, <a target="_blank" href="https://www.businessinsider.com/personal-finance/what-is-a-traditional-ira" rel="noopener">Traditional IRA</a>, brokerage account with Betterment, and a brokerage account in Australia. I mostly <a target="_blank" href="https://www.businessinsider.com/personal-finance/what-is-an-etf" rel="noopener">invest in ETFs</a> — I'm not a stock picker and love the diversity that ETFs provide.</p> <p>It can be difficult to figure out how to divide your money and where to put it, so I recommend HENRYs work with <a target="_blank" href="https://www.businessinsider.com/personal-finance/financial-planner-tell-my-clients-focus-2023-8" rel="noopener">a financial planner</a>. We're not just for the rich — I've worked with clients in many different financial situations, and all can benefit.</p> <p>Even if you're not ready for a financial planner, take the time to think through what your goals are and what you want to spend your money on. That's just as important as putting $100 into the stock market every week.</p> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/henry-financial-planner-manage-money-goals-2024-2">Business Insider</a></div><!-- /wp:html -->

Georgia Lord is saving for a wedding, travel, and a bigger apartment.

Georgia Lord, a HENRY and financial planner, earns a salary of $125,000 but doesn’t feel wealthy.Lord’s financial goals include early retirement, travel, a wedding, and a larger NYC apartment.She warns HENRYs against investing without knowledge and recommends financial planning for everyone.

This as-told-to essay is based on a conversation with Georgia Lord, a 27-year-old certified financial planner and HENRY in New York City. It has been edited for length and clarity.

I studied finance and started my career in Brisbane, Australia.

When I was 22, I moved to New York to join Morningstar in the credit ratings division. I pivoted to financial planning for a Canadian Fintech called Wealthsimple a year later.

Georgia Lord.

I discovered that I love financial planning and working one-on-one with clients. Last year, I got my certified financial planning license.

I now make a comfortable living, but I consider myself a HENRY and have a way to go before I hit my goals.

I make 6 figures but don’t feel wealthy

I earn a base salary of $125,000 and manage to live in New York City by being frugal. I love a bargain or a sale. I save for certain things I want, and I’m good at it because it’s my job. I’d feel like a hypocrite if I didn’t do what I told others to do.

I save on my Broadway tickets by entering into the lottery. I splurge on some things — I spend around $600 monthly on dining out. I also travel a lot, so I automate a certain amount of money every month for travel.

I lived with roommates for four years, and I’ve lived with my boyfriend for the last year. We split the rent more favorably to me since he makes quite a lot more, so I contribute $1,500 per month. That’s also been helpful for managing my finances.

I have a few financial goals

One of my financial goals is to save up for the professional designations available in my field since they can be expensive.

I want to retire early, and I want to keep prioritizing saving for travel and visiting my home in Australia, which is not cheap.

I’m also saving for a wedding and improving cash flow to move into a larger apartment.

To reach my savings goals, I automate at least 20% of my paycheck every two weeks and deposit it in a high-yield savings account. I use Wealthfront but also like Ally, CapitalOne360, and Betterment. I preach that to all of my clients who are HENRYs: Automate your savings for big goals.

There’s not a number in mind that I’m looking to reach to feel rich, but I will feel successful if I can achieve my goals without sacrificing my lifestyle in the process. Being in a great financial position today and in the future is what I consider rich.

I see HENRYs making one big mistake

Because the market did well in 2023, I’ve noticed HENRYs (both in my personal life and those I see as clients) wanting to throw money into it without thinking about how they will fund other goals, like a down payment for a house.

Not only is it harder to access funds once they’re invested, but there can also be financial benefits to other strategies. For example, some stock market returns might’ve been 3% last year, but some high-yield savings accounts have a return of 4.5%.

I still invest in the market, but I do so strategically. I have a 401(k), Roth IRA, Traditional IRA, brokerage account with Betterment, and a brokerage account in Australia. I mostly invest in ETFs — I’m not a stock picker and love the diversity that ETFs provide.

It can be difficult to figure out how to divide your money and where to put it, so I recommend HENRYs work with a financial planner. We’re not just for the rich — I’ve worked with clients in many different financial situations, and all can benefit.

Even if you’re not ready for a financial planner, take the time to think through what your goals are and what you want to spend your money on. That’s just as important as putting $100 into the stock market every week.

Read the original article on Business Insider

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