Money Talks January 2025 | Daisy

5 Smart Moves to Get Ahead of Debt in 2025

5 Smart Moves to Get Ahead of Debt in 2025

Growing up in a Latino household, “échale ganas” (try harder) was the answer to everything. Bad grade? Échale ganas. Tough job? Échale ganas. Money problems? You guessed it. But now that I’m managing my own finances, I’ve learned that getting ahead of debt needs more than just hard work—it needs smart strategy. Here’s what I wish someone had told me sooner about tackling debt and building savings.

What’s Your Debt Strategy? Let me tell you about my favorite method for crushing debt: the Avalanche. Think of it like cleaning your abuela’s house—you start with the biggest mess first. With the Avalanche method, you tackle your highest-interest debt first while making minimum payments on everything else. Yes, it takes more patience than the popular Snowball method (where you pay off small debts first), but trust me—you’ll save serious money in the long run by defeating those interest charges.

Why Your Emergency Fund Can’t Wait Remember how our parents would hide money in random spots around the house? While I admire their creativity, I’ve found a better way: high-yield savings accounts. These accounts actually pay you for keeping your money there—imagine that! Your emergency fund isn’t just sitting there like cash under the mattress; it’s working for you, growing bit by bit.

Smart Moves for 2025 Here’s what I’m doing to stay ahead of debt, and what you can try too:

  1. Be Patient with the Avalanche: Yes, it’s tempting to go for quick wins, but focusing on high-interest debt first is like investing in your future self. The patience pays off—literally. While you might not see immediate progress, you’re saving thousands in interest over time.
  2. Make Your Money Work Harder: Open a high-yield savings account for your emergency fund. Even if you can only save a little each month, you’ll earn more than in a regular savings account. Think of it as your money making extra money while you sleep. No more keeping cash under the mattress like our parents did!
  3. Master the Art of Waiting: Before making any purchase, ask yourself: “Have I completely run out? Have I checked all my resources?” Growing up, my mom would add water to that almost-empty shampoo bottle to make it last longer. While I’m not suggesting that exactly, the principle is solid—use what you have before buying more.
  4. Automate Your Financial Goals: Set up automatic transfers to your high-yield savings account on payday. Think of it like paying your future self first. When the money moves automatically, you’re less likely to spend it on impulse purchases. Plus, you won’t have to rely on willpower alone—the system works for you.
  5. Track Every Dollar: This isn’t about being stingy; it’s about being intentional. Use a budgeting app ( our Suma App, DUH!) or simple spreadsheet to know exactly where your money’s going. You might be surprised to find you’re spending $50 a month on fancy coffee when you could be putting that toward crushing your debt faster.

Getting Started
If you’re like me, you grew up seeing your parents work incredibly hard but maybe not always work smart with money. It’s time to blend their amazing work ethic with modern financial knowledge. Debt can feel overwhelming, especially when you’re trying to build a better financial future than what you grew up with. But remember: managing money isn’t just about working harder—it’s about working smarter. Start with one step: either opening that high-yield savings account or listing out your debts by interest rate.

Because sometimes, “échale ganas” works better when you pair it with a solid strategy.

images 1
images 2
images 3
images 4
images 5
images 6
images 7
images 8
Leave a comment

Your email address will not be published. Required fields are marked *

ten − six =

Your email address will not be published. Required fields are marked *

seventeen + 2 =