Raise but feel poorer example
Raise but Feel Poorer Example Real Income Guide
Raise but feel poorer example: two runs with the same raise but different personal inflation. One feels tight because a hot category runs higher than the raise; the other cools that category so purchasing power improves.
Published: January 7, 2026 · Updated: January 7, 2026 · By FinToolSuite Editorial
See your own raise vs personal inflation
Enter your raise and categories to compare personal inflation, real income change, and the gap estimate.
Disclaimer
- Educational only. Examples are illustrative. No guarantees.
- Results depend on your inputs and assumptions.
- See the Privacy Policy for handling details.
Raise but feel poorer example: Run A
Income: $70,000 to $73,500 (+5%). Hot category: housing weight 40% at 8% inflation. Other categories: 60% at 3%. Personal inflation lands near 5.8%, above the raise, so real income and the gap estimate tighten.
Same raise, cooler personal inflation: Run B
Income still: $70,000 to $73,500 (+5%). Housing weight 35% at 4% inflation (illustrative). Other categories unchanged. Personal inflation drops to about 3.7%, letting the gap estimate improve and real income move up directionally.
Save Run A as baseline, adjust one hot category, save Run B, then compare outputs side by side.
Quick takeaways
- A raise can feel small if personal inflation is higher than the raise.
- Cooling one hot, high-weight category can shift the result quickly.
- Compare scenarios one change at a time for a clean read.
Test your raise scenarios
Enter your raise, save a baseline, cool one category, and compare the outputs.
For context, read the FAQ and the scenario guide.
FAQs
Why can I feel poorer after a raise? ▼
If personal inflation is higher than the raise, purchasing power can shrink even with higher nominal income.
What changed between the two runs here? ▼
One run keeps a hot category higher; the other cools its weight or inflation, lowering personal inflation.
Which outputs should I compare? ▼
Personal inflation, real income change, gap estimate, and hot categories.
Is this advice or a forecast? ▼
No. These are illustrative runs. Results depend on your inputs and assumptions.
How do I interpret the personal inflation percent? ▼
It is your basket’s weighted change; compare it to your raise to see if purchasing power rose or fell.
Where can I compare my own runs? ▼
Use the scenario comparison view after saving your baseline and a changed run.