Go take the absolute highest paying offer the next time you interview for jobs, and if you do that a series of times, I think you'll find you won't be as happy as taking the best overall offer that takes into account things like:
- Role/responsibility
- How interesting the work is
- Whether you're excited to work with your future peers
There's a reason people leave finance despite the high pay. There's more to life than money.
This leaves me with three options. Rent forever, at increasing rates. (not a feasible option). Buy a house now, ride the constant increasing prices like everyone already in the market, be glad I'm not a buyer any more. (trying, but very hard to compete when 10% above listing is common.) Save up and move the hell out.
In any of these situations, a 5%, hell, a 1% raise compounded over a decade, makes a _meaningful_ difference in how long you'd be able to sustain living in a better cost of living area (e.g. if I moved out into the country somewhere), if not also on how much I can put out as a down-payment or as a lifeline to keeping up with increasing rent.
Perhaps it's a sign of what would have in the past been comfortably middle class being more and more stretched, but every little bit counts; it's an oddly similar feeling to when I used to be far less well off a few decades back.
Cavemen had "the essentials of life." That's not what I'm going for, and not what most people are going for. Every little bit extra helps.