While not accurately reflecting a typical family's income and spending, it does show that order matters; there is a consequence for delaying income advance in the face of rising costs.
Initial conditions: a base monthly income and a base monthly level of expenditures.
Two arrays: The annual rates of pay increases and spending increases.
A savings account that has a fixed (ie, unrealistic) annual interest rate, compounded monthly.
Apply rate increases to pay and spending, then take the difference between income and spending and put it in a savings account.
The amount in the savings account at the end of the N year simulation as a function of differently sorting the arrays.
Worst outcome: delay raises by sorting the income rates from low to high; accelerate costs by sorting expenditure rates high to low.
Best: the reverse of worst.
Actual: use the arrays as listed.
The Baumol Effect impacts certain organizations and populations that experience inflation at higher rate than the average organization or population.
The impact is compound interest in reverse.
In the model, this can be explored by having the two arrays be the same or different. A small difference in average rate (1%) makes a difference, especially when combined with a delay in wage increase relative to cost increases.