Comments on Pesonal Income and Outlays, December 2025 (Sam Improves His Savings Rate and Invests in a Side Business in Escanaba)

(Illustrative Only)

Sam realizes he is not 
rich so he adjusted his
person spending to save more,
and started a side business
making maple syrup 
and sells that
through an agreement with one of
the stores downtown Escanaba.
It helps brand the area
and he can pick up a little 
money using his
property. An exportable 
product. 

Think of a few ways
you can make side money
and put that away or
reinvest in your side
hustle.

Looking at December 2025 personal income and spending, the economy is stable but not growing much. Over the year, growth is modest, and it’s important to remember that high earners can skew the data. Many people don’t have the same disposable income as they did in prior generations, which is something that needs attention.

 (Getting more and more but leaving people with less in part from aggressive marketing and selling things we don't necessarily need. Awareness can lead to stronger personal choice versus automatic response. Neuroeconomics. What I'm reviewing is clusters is partly related to deeper human choice and innovation through subtransactions.).

The savings rate is historically low at 3.6% of disposable income, so increasing it is important. Budgeting carefully and focusing on essentials—like cooking at home instead of eating out—can help save money (Be creative with other ways.). Savings can then be invested to grow wealth over time.

Raising wages is another key factor. This can happen through education, learning new skills, starting small businesses, or policies that support workers and small- to medium-sized businesses. Adapting to new technology and being flexible in your work can increase your value and income.

Job mobility can also help if wages aren’t rising where you are. But higher income doesn’t automatically mean more savings—people often spend more when they earn more. Change the pattern.

Summary of Personal Income and Outlays, December 2025

• Personal income rose 0.3% ($86.2 billion) in December 2025

• Disposable personal income increased 0.3% ($75.7 billion)

• Personal consumption expenditures went up 0.4% ($91.0 billion)

• Personal outlays rose $90.2 billion

• Personal saving was $830.8 billion, saving rate 3.6% of disposable income

• Real PCE (inflation-adjusted spending) increased 0.1% ($11.5 billion)

• PCE price index (inflation) rose 0.4% month-to-month, 2.9% year-over-year; excluding food and energy, rose 0.4% MoM, 3.0% YoY

• Data includes updates for October and November 2025 due to government shutdown