I recently came across this interesting concept called lifestyle inflation. People tend to increase their spending habits at the same rate as their income goes up. To me it seems like a very distant thing, but I can understand why people do it. Personally I like saving as much as possible and I'm wondering if I'll still be saving after I have financial freedom in 20 years or so. Anyway, people should be more aware of the effect of lifestyle inflation and when they earn more, they shouldn't automatically increase their spending. I'd suggest spending 10% more of the increased amount of spending power. So if one's pay increases by $200, then they could spend $20 more per month and save the rest. By doing that one won't fall into the trap caused by lifestyle inflation if the situation backfires.