Beware of Lifestyle Creep
Back when people got raises, they were tempted to spend more on their lifestyles. This is called lifestyle creep.
These days, raises are so rare that most workers are not tempted.
Remember, at least 2.5% of your income each year is eaten up by price inflation, using the Median CPI as the standard, which I do.
You need a yearly raise of 2.5% just to keep up.
Second, the government will tax this increase, which is not an increase. So, you need more than 2.5%.
With price inflation, we must run faster on the treadmill just to keep up.
Third, You need to save more. I don't mean so that you can retire on schedule. That's a fantasy. I mean just to take care of unexpected expenses, which don't stop just because you retire.
These will creep into your lifestyle.
Raises are for staying even.
When asked what his inflation hedge was, economist Ludwig von Mises replied: "Age."