Hey friends - the first long weekend of the year is here.

This is the first milestone of accomplishment in 2026. Whether you already crossed off all of your resolutions, burnt the list, or chose not to make one in the first place, it doesn’t matter. It’s a three-day weekend. And if you leave now, it can be a four-day weekend.

The world can start again on Tuesday.

Optimism is the most powerful thing you can bring to 2026.

🌎 The Big Picture

Honestly, outside of the political, the economic news so far this year has been pretty encouraging. From spending to job security and the cost of living, things are trending in the right direction. And most financial and economic prognosticators have a pretty optimistic view for 2026, largely because the federal government is really trying to stimulate the economy, encourage spending, and make some things more affordable.

▶️ The real estate market is starting to pick up.

Home sales activity jumped at the end of the year as mortgage costs dropped. According to the National Association of Realtors (NAR), existing-home sales jumped 5.1% last month, marking the most active December in nearly three years as slightly lower mortgage rates pulled some buyers back into the housing market. Even so, affordability remains strained, with the median price of an existing home at $405,400, still higher than a year ago but down over 6% from peak prices last summer.

The supply of existing homes for sale still remains much lower than usual, leaving buyers with limited options and keeping prices from falling much. Home resales make up most of the supply, and most homeowners have locked in low-rate mortgages and continue to hold onto their properties rather than sell and give up their cheaper rates. If mortgage costs continue to drift lower, prospective home buyers might see more homes come up for sale.

▶️ Layoffs remain exceptionally low even as the hiring market stays sluggish.

The Labor Department reported that initial claims for unemployment benefits fell to just 198,000 for the week ending January 10, a very low level indicative of a healthy economy. The four-week average of unemployment claims, which helps smooth out weekly volatility, fell to 205,000 last week, the lowest in two years. This latest drop continues the trend of historically low layoffs, though businesses have largely stalled hiring. Continued claims, a measure of people requesting unemployment for multiple weeks, also ticked down slightly. Taken together, these indicators reinforce the view that companies are largely hanging onto their workers, but it’s still a challenging time to find a job. Employers looking for staff have the upper hand right now in compensation and hiring negotiations.

▶️ The cost of living has stopped climbing as quickly, giving wages some space to catch up.

Prices rose more in December, primarily due to higher rent and food bills. The Labor Department reported that the Consumer Price Index (CPI), which tracks the average cost of everything in a typical household budget like groceries, rent, and gas, rose 0.3% for the month and is now 2.7% higher than last year. While this increase in the cost of living is a welcome slowdown from the inflation of the past few years, it still means many costs keep creeping up.

The biggest inflation drivers last month were rent and shelter, which jumped 0.4% in December and are 3.2% higher than a year ago. Grocery bills saw their largest monthly increase since 2022, with some items like eggs getting much cheaper, but food overall costing 3.1% more than last December. On the positive side, prices for used cars, household goods, and appliances dropped, and core inflation (which strips out more volatile categories like food and energy) only rose 0.2% last month.

For families and workers, it means the cost of living is still going up, but paychecks are mostly keeping up. Average wages rose 0.3% in December, in line with inflation, but purchasing power has increased by 1.1% over the past year. Anyone on a fixed income will need to plan carefully, and trips to the store might need to be more selective if you’re looking for budget space.

▶️ Need some cash? Ask the government.

The 2026 tax filing season starts on January 26, marking the opening day the IRS will accept and process your 2025 tax return. According to the agency’s recent announcement, you’ll have until April 15, 2026, as usual, to file and pay any balances due.

You may see a larger tax refund in 2026 thanks to the latest tax laws passed in the One Big Beautiful Bill last July. Because the IRS didn’t update wage withholding tables for the remainder of the year, you may have overpaid taxes throughout each paycheck. In addition, the new tax law introduced a variety of retroactive policy changes and increased credits more tightly linked to family size and income that impact how much tax you owe for the year. All these recent tax changes create a unique opportunity to boost your savings.

🏭 The Companies Everyone’s Talking About

❔ The Big Question of the Week

Scoops app users: We have taken the beta app offline for a short period for some major updates. Can’t wait to show you all what we’ve been working on! Reach out if you have any questions.

We’re going to switch up the content in this spotlight for a bit to make sure you all have the info you need to master your week.