Things you need to know going into the New Year.
Watching the news can be very daunting to say the least. However, there are quite a few important things to take into account to prepare you going into the new year that I believe will be quite helpful. Please don’t be too alarmed, we will get through this together. It is all about strategizing to make the most out of your current situation.
Rising Grocery Prices
The Federal Reserve signals rate hikes in 2022. As of last month, grocery prices were 6.4% higher than they were a year ago which is the fastest pace of food inflation in more than a decade. Everything from produce, meats, canned goods, and bread has increased 50 cents to the next $1 at most grocery stores. The reason behind why grocery prices are rising is due to the food manufacturers and grocers having to face higher costs for labor, transportation, and other expenses during the pandemic. If you have funds now, I’d recommend to grocery shop for essential needs this week before the next price increase going into the new year.
Used Car Price Inflation
If you are thinking about getting a car next year, please be mindful of the skyrocketing price increases, even for used cars. Surging used vehicle prices suggest inflation will even strengthen in early 2022. Used car prices have already soared 37% over the past 12 months as the demand for pre-owned vehicles have increased. Your next question may be, when can we expect car prices to go back to normal? The Industry experts state that it will likely take all of 2022 and maybe 2023 for the used car market to start to return to normal. Relatively speaking, prices will normalize when new car inventory normalizes which will take all of 2022. So if you are not in a desperate rush to purchase a car next year I would recommend to hold off and wait to see what the industry is doing throughout the year.
Student Loans
With the recent change in Biden administration’s decision. Student loan repayments have been pushed to May 1st. Forbes states that there is also another possibility that more student loan relief could be coming. The options presented include a cancellation of $2B of student loans by the Education Department, another extension of the student loan relief, or implement a widescale student loan cancellation through executive action to appease progressive members of Congress. Despite these options heavily weighing in our favor, please be mindful that no decision has been made regarding the next steps.
Employment Opportunities
On a good note, employment has been on a steady rise. Some of the fastest projected growth will occur in the healthcare, healthcare support, construction, and personal care fields. It is expected that the growth in 2022 will exceed 4%, the unemployment rate will fall to 3.5% and job growth will average roughly 230,000 jobs per month (realeconomy.rsmus.com). With the recent signing of the $1 trillion bipartisan infrastructure bill, you can definitely expect more job opportunities in the construction and engineering fields going into the new year. In addition, the science and tech industry is on a steady rise and is expected to grow 13% within the next few years.
I really hope this information helps as we go into the new year! Whether you are looking to make that financial push through your career or side business just know that everything will fall into place in your favor. Don’t let the depressing media deter you from your purpose. Stay positive and enjoy the things that matter which are the people around you :)
