I want to share the system I use to avoid lifestyle inflation when I get a raise, because it's the behavior that matters most over a 20-year career.

Whenever I receive a salary increase, I apply the following allocation before the new paycheck arrives: 50% of the after-tax increase goes to increasing my investment contributions automatically, 25% is allowed to increase my lifestyle, and 25% goes to my 'big goals' fund (travel, home improvements, etc.).

The key is setting up the investment increase before I ever see the new net paycheck. If the higher contribution happens before the money hits my checking account, I adjust to the lower take-home and the lifestyle inflation never fully materializes.

I've applied this rule through 6 raises over 10 years. My savings rate has increased from 12% to 31% while my lifestyle has also genuinely improved. Neither requires the other to suffer.