A financial advisor shared an anecdote about a client who received a 12% salary increase but felt poorer within three months. The issue wasn't reckless spending, but rather several small, permanent lifestyle upgrades, such as higher rent and increased savings contributions, which collectively eroded financial flexibility. The advisor highlights that small, consistent increases in fixed costs can be more detrimental to financial well-being than occasional large splurges, emphasizing the importance of cautious expense management.