Controlling expenses and debts and financial education, the keys to improving personal finances in 2025
Christmas has just come to an end, one of the times of the year that generates the most expenses for people. January is therefore a key time to organise budgets and start the year with a good strategy for optimising our personal finances.
To this end, Dr. Pedro R. Solórzano Campos, Director of the Grado en Administración y Dirección de Empresas at the Universidad Internacional de Valencia - VIU, which belongs to Planeta Formación y Universidades, explains the good practices that will help us to improve our financial situation in 2025.
‘January is the ideal month to reflect on our finances’, recommends the VIU expert. ‘Just as companies close their financial statements at the end of the year, we should review our accounts to plan payments and reduce financial burdens’.
Tips to improve finances in 2025
Repay debts: One of the best decisions to make in financial terms is to repay debts, especially those with high interest rates. It makes no sense to keep money sitting idle in a bank account with no return when we can use it to reduce debt with an effective annual rate of 20% or more. Reducing our debt burden will allow us to start the year with more comfort and financial peace of mind.
Set clear financial goals: This can include setting up an emergency fund, planning a trip or even starting to invest. Setting specific and achievable goals will motivate you to maintain good financial behaviour throughout the year.
Audit subscriptions and recurring expenses: Many times, we are paying for services that we no longer use or that could be replaced by cheaper alternatives. Identifying these expenses and cutting them can free up a significant amount of money that can be put towards more important goals.
Educate yourself financially: It never hurts to improve your financial literacy, and it can be a good resolution for 2025. Consider reading personal finance books, attending workshops or seeking professional advice. Financial education is an investment that always pays off in the long run and will help you make more informed and confident decisions in the future.
Paying attention to expenses and debts is key
As recommended by the expert, using digital tools can help improve financial health. Apps for these purposes are useful for managing the budget, monitoring expenses in real time and avoiding financial slippage.
In the event that last-minute purchases arise or require the use of a credit card, always keep in mind that it should be a last resort, as consumer loans tend to have the highest interest rates in the financial system.
And of course, smart savings will always be an ally for the whole year. Starting to save now provides great peace of mind at the end of the year. A useful trick recommended by the expert is to save an amount each month, however small, by automating transfers to savings accounts, so that you don't feel the effort.
‘Financial recommendations should be adapted to the personal circumstances of each individual,’ says Dr Pedro Rafael Solórzano. ‘What is presented here are general guidelines that can help you better plan your spending and financial decisions'.
