A thousand-year-old earnings barely survived until $ 120,000 was transferred to Phoenix.

  • Kyle, a 34-year-old tech worker who earns 5 175,000, lived with Henry before the Bay Area epidemic.
  • He was a high earner and not yet rich, paying $ 2,500 in student loans and $ 4,300 in rent each month.
  • He continued to earn 80 80,000 a year, saving ڈالر 10,000 a year after moving to Phoenix to work remotely.

Kyle Henry used to be, short for “high earner, not rich yet”.

Now, the 34-year-old tech worker, who did not want to reveal his last name for privacy reasons, is on the path to building wealth thanks to the remote work world.

After completing his PhD, he spent the past five years revolving around TechSen as a major data specialist in California. According to a salary revised by an insider, he was earning $ 120,000 on his first job in 2016, and increased his salary at his next company after moving to the Bay Area.

But Kyle barely saw his six-figure salary, and found himself stuck in a Henry lifestyle. HENRYs typically earn more than $ 100,000 in their early 30s and live in urban areas for thousands of years. They often feel like they are living on a paycheck and struggling to survive, either because they are overwhelmed by the lifestyle and living above their means or Because living in today’s economy is more expensive than it used to be ڈالر 100,000. .

In some cases, like Kelly, they are both.

“My personal story is that some people are very trapped in their current lifestyle patterns,” he said. “Sometimes, it has nothing to do with material costs.”

He said his money usually goes to rent higher than the sky, puts 500 2,500 in student loans, and puts large ticket items such as furniture and kitchenware on his credit card. He was caught in a vicious cycle of debt.

After a few years of paying, he said, he contracted an epidemic. It opened up a chance to change the game: he started a new job with a permanent remote job and a basic salary of $ 175,000 according to his salary. It enabled him to trade in the Bay Area for his hometown of Phoenix last September, ending his bizarre lifestyle.

“I managed to halve my living expenses,” he said. While living in California typically saves 5,000 to $ 10,000 a year, he added that he saved 80 80,000 last year. “Working from home provides a unique opportunity for young people to get out of the debt cycle.”

Former Henry’s confession.

Kyle said he can’t even think of going back to work in the Bay Area after the epidemic.

“Looking back, I can’t believe how unreasonably expensive everything was,” he said. “Cost didn’t seem to be a big issue at the time because I was able to get a tech paycheck, but my value was higher than the accumulation of mobile assets like home ownership.”

The Bay Area is known for its infamous real estate market, which is the most expensive in the United States, along with New York City. Kyle said a 1,200-square-foot artisan house down the street from which he lived sold for 2. 2.1 million before the epidemic broke out, and the cost of such a home has only added to the path to home ownership. Made difficult

He added that a friend had been struggling to buy a home in the area for a year, and had recently lost a bid for ڈالر 60,000 for a townhouse.

Coming out of the housing market, Kyle said he spent 4 4,300 a month on renting a two-bedroom, two-bathroom condo in the Bay Area. He eventually moved into Phoenix to become a homeowner, one of the epidemic migration sites, where he pays 1,043 a month for his mortgage on a three-bedroom, two-and-a-half-bathroom home. ۔

Its other monthly expenses have also come down significantly. Based on his bank’s statements, he estimates he is spending $ 3,700 a month in addition to rent in the Bay Area, which now looks like $ 1,500 a month in Phoenix.

Kyle said he still stands for California, deprived of food and social activities, but not deprived of the value of life and traffic.

“For those who are flexible at work, there is a huge financial opportunity, from migration to low-cost metros,” he said.

But Kyle explains that everyone sees usefulness – an economic term referring to the degree of happiness that comes from using a product or service – in different ways.

“Measuring the cost of living (or lack of savings) without measuring utility tells only half the story,” he said. “I managed to increase both last year, but for others it’s still a tough trade.”

Do you have a story about your HENRY life? Reach out to Hillary Hafor at hhoffower@insider.com.

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