While most people are setting resolutions for health and fitness, why not make a commitment to your financial wellbeing too? Here are some practical ideas to help you start 2026 on the right foot.
Top Up Your TFSA or Set Up Regular Contributions
The TFSA contribution limit for 2025 is $7,000, and it will stay the same in 2026 for another $7,000. If you haven’t maximized your contributions in previous years, you may have much more room available. For someone who has never contributed since TFSAs began in 2009, the cumulative limit will be $109,000 in 2026. This is a significant way to growth wealth.
If you receive an inheritance, a bonus, or any other windfall, using that money to top up your TFSA is a smart move. Many people use TFSAs for short-term savings and park their money in high-interest cash funds. While that’s better than nothing, it’s not the best use of this account. TFSAs are designed for long-term, tax-free growth, so consider investments like mutual funds instead of treating it like a basic savings account.
Increase Your Regular Savings Plan
One simple strategy that makes a huge difference over time is increasing your savings amount every year. Many people set up $100 a month and rarely change it. If you bump it up annually, especially as your income grows, you’ll build wealth faster without feeling a big pinch.
Top Up RRSPs
Take a look at your 2025 income and see if an RRSP contribution could help reduce your taxes. You have until March 2, 2026, to make contributions that count toward your 2025 tax year. The RRSP limit for 2026 is 18% of earned income up to $33,810, but your personal room may be higher if you have carry-forward space.
Tip: Use your tax refund to top up your TFSA and pay yourself twice!
Consider Opening or Funding a First Home Savings Account (FHSA)
If buying your first home is part of your plan, the FHSA shouldn’t be missed. You can contribute up to $8,000 per year, with a lifetime limit of $40,000. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home purchase are tax-free (like a TFSA). It’s a great way to save for a down payment while getting tax benefits. Read our previous blog post all about FHSAs!
If you have a child or grandchild who is in this stage of life, send them our way to get a good head start on their downpayment and overall financial plan.
Contribute to the Kids’ RESP
RESPs are still one of the best ways to save for education. There’s no annual contribution limit, but the lifetime limit is $50,000 per child. To maximize the Canada Education Savings Grant, contribute $2,500 per child per year for a $500 government match. If you have unused grant room, you can contribute up to $5,000 in a year for a $1,000 match.
Tip: Use your Canada Child Benefit for monthly RESP deposits.
Make Your Estate Plan a Priority
Estate planning is often overlooked, but it’s an essential part of a good financial plan. More than half of Canadians still don’t have a will. A proper plan includes a will, powers of attorney, beneficiary designations, and possibly trusts and life insurance. With a massive wealth transfer happening in Canada, now is the time to make sure your wishes are clear and tax-efficient.
Enroll in Automatic Bill Payments
Setting up automatic payments for recurring bills can save you from late fees and missed payments. Most banks and service providers make this easy.
Ramp Up Your Emergency Fund
Aim for a minimum of three to six months of living expenses. This cushion protects you from unexpected events like job loss or major repairs without dipping into investments or relying on credit.
Tax-Loss Harvesting
If you have investments in a non-registered account that have dropped in value, consider selling them before year-end to realize a capital loss. These losses can offset capital gains from this year, and any unused losses can be carried back three years or forward indefinitely.
Important: Be mindful of the superficial loss rule, which denies the deduction if you buy back the same or identical investment within 30 days before or after the sale. This strategy can help reduce your tax bill and clean up your portfolio.
Charitable Giving
Donations to registered charities must be made by December 31 to qualify for a tax credit on your 2025 return. Consider donating appreciated securities or mutual funds instead of cash—this eliminates capital gains tax on the donated securities and still gives you a charitable tax receipt for the full value.
Review Your Insurance Coverage
Life, disability, critical illness, and home and auto insurance should be reviewed every year. Have you changed jobs and lost group benefits? Do you need more coverage for dependents? Insurance gaps can derail financial plans, so make this review part of your year-end routine.
Take the New Year as an Opportunity for a Full Financial Review
A comprehensive review helps you measure progress and identify areas for improvement. Whether it’s maximizing tax shelters, updating your estate plan, or boosting savings, small steps now can lead to big results later.
We wish all our clients a wonderful close to 2025 and a healthy, prosperous 2026!
The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This blog was prepared by Amanda Ashwood, for the benefit of Amanda Ashwood, Financial Planner with Crawford Ashwood Financial, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this blog comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.
Thank you for all you have done for us over the years. Having used your advice over the years, we our financially sound in our retirement years. Have a wonderful Christmas and wish you the best for the New Year