(InvestigateTV) — Bankrate found that 61% of workers got a raise last year, but many fell victim to what’s known as “lifestyle creep.”

Virginia Credit Union Financial Coach Cherry Dale said the term lifestyle creep is the idea that the more money you make, the more you tend to spend.

“And if you absorb it just with your spending habits, you’re not really putting money toward building savings or wealth in the long run,” Dale explained. “So, if you can assign a savings goal around that extra income, it will really help you with your overall financial plan.”

For example, a car is often a first purchase when someone finds out they’ll be making more money. But Dale said they should first think about what the monthly payment will be. Does the raise really help?

Maybe the family is growing, and workers want to upgrade their home. Dale advised them to be strategic about the extra income.

“Don’t just go into it impulsively. If you know that income is coming in, look at it for 6 months, a year, the extra income, putting that aside to help with your down payment,” she urged. “The overall purchase of a house, and you have that cushion. And you can also even budget what a higher house payment might look like.”

Dale said go ahead and put an extra $200 a month away. Save the extra money first to get a true understanding of what the budget will really look like with that raise.

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