Financial health strategies lay foundation for well-being in 2025
Consultant Zelma Dávila urges setting goals, cutting debt and building savings.
Given that 69% of U.S. residents set financial resolutions for the new year, bankruptcy attorney and financial consultant Zelma Dávila urges Puerto Ricans to use January to reflect, plan and take action on their financial goals.
She noted that unexpected costs and lack of preparedness often hinder success, but proactive planning and consistent habits can help overcome these challenges and create a foundation for economic well-being.
Recent data from the Financial Industry Regulatory Authority (FINRA) paints a picture of financial fragility in Puerto Rico. Nearly half of adults (47%) cannot cover an unexpected $2,000 expense, 39% spend more than they earn monthly, and only 41% have emergency savings, while just 10% hold investment accounts.
Given these challenges, Dávila stresses the importance of setting realistic, actionable financial resolutions.
“Procrastination and lack of focus are common barriers that can be overcome with a clear and realistic financial plan,” she said. “Taking small, consistent steps right now can create long-term economic stability and peace of mind.”
She suggests starting with a clear strategy that includes setting financial goals, budgeting and reviewing past spending. Research shows individuals who write down their goals and track progress are 76% more likely to achieve them than those who don’t.
Dávila advocates for using financial tracking apps to identify spending patterns and make adjustments. Industry and academic experts recommend several actions to build financial strength:
- Set clear financial goals: Break goals into short-, medium- and long-term objectives. For instance, save for a vacation (short-term), pay off debt (medium-term) or invest for retirement (long-term). Financial guidance firm Ramsey Solutions recommends setting measurable goals to maintain focus and accountability.
- Budget with the 50/30/20 rule: Allocate 50% of income to essentials, 30% to discretionary spending, and 20% to savings and debt repayment. Harvard Business Review recommends budgeting tools such as Rocket Money, Honeydue, Empower Personal Dashboard and GoodBudget.
- Build an emergency fund: Aim to save three to six months of living expenses to avoid financial stress during unexpected events. The Federal Reserve notes that 40% of Americans struggle to cover a $400 emergency.
- Reduce debt strategically: Use methods like the snowball (smallest balances first) or avalanche (highest interest rates first) to reduce debt effectively. NerdWallet recommends these approaches to improve credit scores.
- Automate savings and payments: Automatic transfers and payments ensure consistency and reduce missed bills. Bankrate emphasizes the benefits of automation.
“Using technological tools like financial tracking apps can be incredibly helpful in this process. Additionally, it’s essential to set specific goals such as increasing savings, reducing debt or starting to invest,” Dávila said.
“January is a great time to reflect on our finances and set clear goals for the new year. Just like we plan our vacations or family gatherings, we must dedicate time to plan our financial well-being. This action not only prepares us for an organized start to the year but also motivates us to take control of our finances and achieve our long-term goals,” she added.
