[roland35]

Congrats! I am asking myself the same question after getting a nice raise as well. Here is where my thinking is currently:

1. Don't make any sudden changes! Think for a least a month before making any big purchase, sometimes it still is desirable after waiting, sometimes it is not! You got this far without it so far, so another month isn't a big deal.

2. Use a tool like projectionlab.com or a spreadsheet to calculate how much you want to be saving for retirement. If you're maxing out tax-advantaged accounts that is pretty good already, but it is good to have a target for how much to save each year on top of that.

3. Try to keep your "burn rate" low. I think it is better to try and keep your long term recurring costs based off of your old salary as long as possible. Pay cash for any fun things, so if you lost your job tomorrow you don't have big obligations like a huge mortgage or lease payments.

The term I heard is HENRY - High Earner, Not Rich Yet! A lot of people spend it as soon as they make it and never accumulate wealth.