Have you ever received a pay rise but still not felt any more financially secure? If so, you’re far from alone.New research from Compare the Market suggests that lifestyle inflation, also known as “lifestyle creep”, is eating into many people’s pay rises.The poll of 2,000 UK adults who had received a pay rise within the past 12 months found that almost half (47%) said their spending had increased in line with their income.Many respondents admitted they were spending more on items they had previously considered luxuries, including takeaways (24%), eating out (22%), new clothes (21%) and beauty treatments (15%).The findings also revealed that nearly half (48%) had not managed to save any extra money since receiving their pay rise. Meanwhile, 41% said they had been able to increase their savings, while 7% reported that they were actually saving less than before.(Alamy/PA)We spoke to Laura Pomfret, personal finance expert at Compare the Market, who shared her top tips on the habits people can adopt after receiving a pay rise to help strengthen their financial future and avoid lifestyle creep from taking over.1. Plan in advancePlan ahead (Alamy/PA)“When a pay rise comes out of the blue and you aren’t expecting it, it can feel like free money. It’s easy to get swept up and not slow down or be methodical and be a bit mindless because it’s exciting,” says Pomfret.However, if you are expecting a pay rise or have a review coming up, being proactive and planning ahead will put you in a much better position.Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENT“Having a list of what you would do with a pay rise helps guide you when you start making those decisions,” says Pomfret.She encourages everyone to have a realistic bougie budget in mind to prepare for potential salary increases or bonuses.“If you had a little bit more money coming in every month, think about what you would do with it,” recommends Pomfret. “We all have different priorities and for some people it might be getting a cleaner once a week, for others it might be going on one extra holiday a year.”2. Think about what goals you can reach quickerPomfret recommends shifting your mindset away from viewing a pay rise as extra spending money, and to instead see it as an opportunity to reach your financial goals quicker.“Think about how much more you can contribute towards your financial goals monthly after a pay rise, whether that be towards a holiday, a saving account, or plans to move house,” says Pomfret.3. Prioritise tackling debt and building an emergency fund first(Alamy/PA)If you are in high-interest debt or haven’t got any emergency savings, focus on that first.“If you’ve been trying to pay off debt, a pay rise can be a big leap forward towards that goal,” says Pomfret. “Focus on building a mini emergency fund, and then focus on optimising your high-interest debt and switching it to low interest or zero interest if you can.”4. Create a new budget(Alamy/PA)A pay rise is a great opportunity for a fresh new budget.“It’s a great chance to wipe the slate clean and to think about where you are at now,” says Pomfret.“Your budget should be lean and should be balanced between looking to the future and looking to today. A pay rise is also a great opportunity to do a mini money MOT.”You can do this by “squeezing” your budget.“Squeezing your budget is when you go from the very top, and go through your mortgage or rent and ask yourself am I’m happy with what I’m paying? Can I reduce it? Am I in the right council tax band?” explains Pomfret. “Then you can check to see if you are overpaying for utilities and can see what broadband deals you could get and so on.”5. Increase your monthly contributions to your future“If you are really happy with your life and are managing your expenses, then it’s an absolute bonus to be able to carry on as you are and put lots of money towards your future [investments, pensions etc] because it’s a really good financial thing to do,” says Pomfret.“However, if you are struggling, setting your investments, pension and retirement contributions as a percentage of your salary instead can be a really effective way to keep building towards your future.”This means that whenever you receive a pay rise, your contributions will automatically increase in line with your new salary, helping you put more aside without having to make major changes to your spending habits.6. Treat yourself proportionately(Alamy/PA)A pay rise is an exciting milestone that should be celebrated.“Give yourself permission to spend a little bit on something that’s relative and in proportion, so you can have the best of both worlds,” recommends Pomfret.“You can get that celebration and dopamine hit from a takeaway or a meal out with the family rather than going on a £4,000 holiday that you haven’t planned for and would cancel out all extra money you have work for.”To conclude:“A pay rise is a great opportunity to wipe the slate clean, re-check everything and gain control,” says Pomfret.“By doing this there’s a lot less guilt involved because if the basics are taken care of and the future is taken care of, then why shouldn’t we treat ourselves and our family? Just make sure you are putting money towards something that you really want and that you aren’t influenced by others or what you see online.”