Congratulations on that big raise! It’s like finding a golden ticket in your chocolate bar, right? But before you start daydreaming about splurging on that fancy coffee maker or upgrading your streaming service to the deluxe plan, let’s tackle the sneaky villain known as lifestyle creep. This is when your spending gradually increases just because you have more money coming in, and trust me, it can creep up on you faster than a cat meme goes viral.

The good news is that you can outsmart lifestyle creep by being proactive with your newfound funds. First things first, let’s talk about automating your savings and investments. This is like setting your Netflix to auto-download the next episode of your favorite series. You won’t even have to think about it! Start by determining a percentage of your raise that you want to save or invest. A common rule of thumb is to save at least 20% of any raise you receive. So, if you got an extra $5,000 a year, set aside $1,000 right off the bat.

Now that you know how much to save, it’s time to decide where to park those funds. Your 401(k) is like the VIP section of your financial future. It offers tax advantages and a possible employer match, which is essentially free money! If your employer matches contributions, you’ll want to contribute enough to take full advantage of that. Aim for at least enough to get the maximum match, then consider putting some additional funds into your 401(k) up to the annual contribution limit.

But don’t forget about your brokerage account! While your 401(k) is fantastic for long-term growth, a brokerage account is like the cool, laid-back friend who’s there for you now. It allows for more flexible investing and easier access to your money. Depending on your goals, you might want to allocate some of your raise here too—think of it as your financial playground. A good starting point could be a 50/50 split between your 401(k) and a brokerage account after you’ve hit the employer match.

As you navigate these waters, consider setting up automatic transfers into both accounts. Just like how your favorite subscription service charges you monthly, you can schedule an automatic deposit into your savings and investment accounts right after payday. This way, you’ll be less tempted to spend that extra cash on things you don’t really need. Plus, you’ll get to watch your investments grow, which is almost as satisfying as binging an entire season of your favorite series in one weekend.

Ultimately, the key is to balance enjoying your hard-earned raise while also securing your future. By saving and investing before you adjust your spending habits, you’re giving yourself a strong financial foundation. So, go ahead and treat yourself occasionally, but make sure to build your financial empire at the same time. That way, when you look back years from now, you’ll not only have great memories but a healthy bank account to match.