Inflation 2022: Year-end money moves to hit your financial goals and get out of debt

PHILADELPHIA (WPVI) — Thanksgiving dinner will cost 20% more this year due to inflation, and consumers are expected to spend less this holiday season. The good news is that there are some things you can do now before the end of the year to secure your finances and maximize your income.

Thanksgiving dinner prices have skyrocketed. According to the Action News Data journalism team, turkeys are 17% more, canned fruits and vegetables are 19% more, and you’ll pay 27% more for butter.

This kind of news really has consumers worried not just about the holidays, but also about their financial future, so Action News spoke to a personal finance expert about what you can do.

As communities attempt to spread holiday cheer, inflation plays Scrooge’s part.

Forty-one percent of vacation shoppers plan to spend less this year compared to last year. Fifty-eight percent are concerned about their finances as the holiday season approaches.

“Be mindful, be intentional, and think about how you’re going to handle it. Be careful of your spending, but also be realistic,” said Bobbi Rebela personal finance expert from Score.

She says to make a list and a budget and stick to it. Then pay off your debt using what’s called the “avalanche method.”

“That’s where you’re going to pay off the most expensive debt first. So if you have a credit card with a very high interest rate, that’s going to be first on your list, and then you’re going through a way down,” Rebell said.

Also take advantage of technology.

“Apps like Tally can automate that and find the most efficient way to pay off debt, pay off your debt and it will also help you get there much faster,” she says.

Road to 2023 – Rebell says to set financial goals. Check your pre-tax contributions to your retirement accounts. Make sure you pay the maximum amount and get the maximum return from your business.

“You can make changes at any time, unlike healthcare decisions. So it’s something where you have a lot of power.”

Speaking of health care, maximize your HAS, your health spending account, if you have one.

And if you have money in an FSA, a flexible spending account, use it by the end of the year or lose it.

Also know that you can contribute more to your 401K for 2023. The new contribution limit is $22,500.