The Pay Rise You Didn’t Feel: Why Earning More Doesn’t Always Mean Living Better

You finally broke into the next pay bracket. You were expecting confetti. Or at least a feeling of “wow, I’ve made it.”

Instead… you feel exactly the same. Just with a slightly higher tax bill and a new Uber Eats habit.

Welcome to the paradox of the high earner who still feels broke.

🧾 Lifestyle Creep: Death by a Thousand Upgrades

You didn’t make one huge mistake. You just slowly swapped:

• Aldi for M&S

• Economy for Premium Economy

• £40 nights out for £140 “experiences”

Nothing wrong with upgrading. But when everything’s a treat, nothing is.

💸 You Forgot to Give Your Pay Rise a Job

Most people absorb higher income like a sponge: it goes in, it disappears, and you’re just a slightly more expensive version of yourself.

The fix?
Assign your new income a purpose — before your lifestyle assigns it for you.

• Auto-increase pension or ISA contributions

• Set a fixed “lifestyle upgrade” amount (the rest goes to goals)

• Use percentage-based budgeting

Break your spending down into categories

• Basic You - living costs, housing, transport, essentials

• Future You - savings, reducing debts, investing

• Fun You - socialising, eating out, luxuries, holidays etc

Deduct and amount for ‘Basic You’ and split the rest of your income 40% ‘Future You’ & 60% ‘Fun You’.

That way, when your salary increases, so does your savings and fun.

🤯 The Mental Lag

Even if you earn six figures, you might still feel like you’re scraping by. Why? Because your brain hasn’t caught up with your bank balance.

Track your net worth. Reflect monthly. Remind yourself: you are not your salary — you are what you do with it.

💬 Final Thought

A pay rise is only powerful if it changes your financial future — not just your UberEats history.

So before your next salary bump becomes another invisible direct debit…Plan it. Direct it. Or kiss it goodbye

p.s. not advice obvs!

This article would be correct as at the time of writing but as we know; rules and regulations can change. Seek advice before taking any action.