Quick note before we start: This article summarizes the core lessons we’ve learned this year and prepares you for the official 2026 changes announced by the Canada Revenue Agency (CRA). It is for educational purposes and is not personal financial advice. For official rules, always refer to Canada.ca.
We have covered a lot of ground this year. From understanding What is Personal Finance? to exploring All-in-One ETFs, we’ve built a foundation together.
But a plan is only as good as its execution. As 2025 comes to a close, it’s time for a “Financial Rewind.” Here is your 5-step checklist to wrap up this year and hit the ground running for 2026.
1. The Big Reset: Review Your 2025 Goals
Early this year, we discussed How to Set Financial Goals. Now is the time to be honest.
- Did you hit your targets? If so, you’ve mastered the Financial Mindset needed for long-term success.
- If you didn’t: Don’t worry. Tweak the 50/30/20 Rule to see where the leaks were and adjust for January.
2. Maximize Your “Tax-Free” Opportunities
You have until December 31st to make moves for most accounts, but the 2026 limits are already here.
RRSP: You have until March 2, 2026, for 2025 contributions. Official for 2026: The RRSP dollar limit rises to $33,810 (up from $32,490).
TFSA: Ensure you’ve used your 2025 room. Official for 2026: The CRA has confirmed the TFSA annual limit is $7,000 for 2026. Your total cumulative room reaches $109,000 if you’ve been eligible since 2009.
FHSA: You must fund your FHSA by Dec 31st to get the tax deduction for 2025.
3. Prepare for the 2026 Tax & CPP Shift
The government has introduced changes that will affect your Paycheck Routine starting in January:
- Lower Bottom Tax Bracket: The federal tax rate for the lowest bracket officially drops to 14% for 2026 (from the 14.5% effective rate in 2025).
- CPP Enhancement (Phase 2): The Year’s Maximum Pensionable Earnings (YMPE) rises to $74,600. A second ceiling (YAMPE) of **$85,000** applies for “CPP2” deductions.
- Capital Gains (Update): The previously proposed hike to a 2/3 inclusion rate was officially cancelled by Prime Minister Mark Carney. For 2026, the inclusion rate remains at 50% for all taxpayers.
4. Audit Your Portfolio & Risk
Review our guide on How to Diversify and perform these checks before the new year:
Review Your ETFs: Use our 7 Questions Before Buying an ETF to ensure your holdings still align with your goals.
Rebalance: If your stocks grew significantly, you might be over-leveraged. Revisit your True Investment Risk and adjust back to your target.
5. Automate Your 2026 Success
In our guide, 7 Common Personal Finance Mistakes, we highlighted that relying on willpower is the fastest way to fail. Automation is the cure for “decision fatigue.”
- The Paycheck Bridge: Don’t just save “what’s left.” Use our Ultimate Paycheck Routine to set up an automatic transfer for January 2nd.
- For Beginners: If you are just starting, follow the 8th step in Investing for Beginners in Canada—set up a Pre-Authorized Contribution (PAC) (or pre-authorized debit). This ensures you buy into your portfolio every month without having to click a single button.
- Side Hustle Automation: If you started a side gig this year, automate a percentage of that specific income into a separate “Tax/Savings” account so you aren’t caught off guard in April.
- Emergency Fund: If you used your Emergency Fund this year, make it your #1 priority to refill it in Q1.
The Reader Takeaway
2025 was about building knowledge; 2026 is about execution. With a lower bottom tax rate and a new $7,000 TFSA limit, you have every tool needed to grow your wealth. Take one hour this week to set your “Auto-Pilot” for January.
Next Step: Not sure which account to fill first in 2026? Start with our classic comparison: TFSA vs. RRSP: Which is right for you?.
Your Final 2025 To-Do:
- Celebrate one win: Whether it was Paying Off A Credit Card or finally understanding The Magic of Compound Interest, acknowledge it.
- Update your limits: Take note of the official $7,000 TFSA limit for 2026.
- Set the cruise control: Ensure your transfers are automated for January 2nd so you can enjoy New Year’s Day knowing your future is already being built.
A Final Message for 2025
As we close the book on this year, remember that wealth isn’t just about the balance in your bank account; it’s about the freedom it buys you and the peace of mind it brings.
This blog started with a simple mission: to make Canadian finance less “Mission Impossible” and more “Mission Possible.” Thank you for being part of this community and for investing in yourself. 2026 is a blank page—let’s write a wealthy one together.
See you in the New Year!
Quentin
Full Disclaimer
This article is for informational and educational purposes only and does not constitute financial or tax advice. Tax laws and contribution limits can change; always verify with the CRA or a qualified professional before making financial decisions.
