Five money moves to transform your year

There’s no time like the new year to look ahead, especially when it comes to your finances. As 2025 draws to a close and we look forward to 2026, proactive planning is key to helping you make progress on the goals that are important to you.

Whether you’re aiming to pay down debt, plan a vacation or boost your retirement savings in 2025, the first thing you need is a plan, says Jamie Golombek, managing director of tax and estate planning at CIBC Private Wealth in Toronto. A thoughtful plan will help you take small, focused steps now – like revisiting your budget, ensuring your investments align with your goals and using a regular investment plan to keep you consistently working toward them – to create the future you want for you and your family.

Not sure how to begin? Here are Mr. Golombek’s top tips:

1. Get clear on how much money you have to work with

Understanding exactly how much money you have coming in, how much you’re saving and how much you’re spending in different areas gives you a complete picture of your financial situation. This clarity can help you prioritize what matters most and make informed decisions that help you reach your goals.

Mr. Golombek suggests you begin the budgeting process by listing your household income and all fixed and variable expenses.

“Now, look at what’s left over, because that’s the money to prioritize for goals,”

2. Be specific about the goals that matter most

“The challenge for many Canadians is they have so many priorities – from paying down debt to investing for long-term goals like retirement,” says Mr. Golombek. In many cases, people can’t achieve all their goals at once, he adds, but “planning prioritizes which [goals] to focus on the most.”

To get started, make a list of all your goals. Start with near-term priorities – goals you want to accomplish within six months to a year – such as paying off credit card debt. Then, list medium-term ambitions you want to achieve within one to five years, such as purchasing a vehicle or taking a vacation. Lastly, outline your long-term plans – anything five years away and beyond – which could include retirement or buying a home or vacation property.

With this clarity you might, for example, focus on paying down debt now – a shorter-term goal that will ultimately help you achieve your long-term goal of retirement

The more specific these goals are, the clearer it will be what steps you need to take to achieve them. “We believe that goals should be specific, measurable and timely.” For example, instead of saying “I want to save for retirement,” aim for, “I want to save $500,000 by age 65.”

3. Put your money to work with a regular investing plan

Once you have a budget in place and you have prioritized your goals, it’s time to put your excess cash to work, says Mr. Golombek.

Regular investing – contributing to your investment portfolio on a consistent basis – is a great way to build momentum with your finances, he says. It makes contributing easy and automatic; a regular expense in your budget that you are paying to yourself in order to work toward your goals. Plus, it enables you to take advantage of how these contributions will compound over time.

When deciding how to invest your hard-earned dollars, diversification is essential for steady growth while still managing risk, says Mr. Golombek. You should be investing across different types of investments, such as stocks and bonds, and across geographies and industries.

“Ultimately, an advisor can help put together a diversified portfolio plan to achieve your goals with a level of risk that allows you to sleep at night.”

4. Maximize the benefits of registered savings vehicles

Registered savings vehicles, such as RRSPs (registered retirement savings plans), can help you grow your wealth by reducing the tax on your investment income and gains.

“All of these registered accounts have substantial tax and other benefits, so you could be leaving a lot of money on the table if you aren’t using them to their fullest,” Mr. Golombek says. An advisor can help ensure registered accounts are used to maximum benefit, he adds.

Each type of registered savings vehicle offers unique tax advantages that can amplify your savings over time. For example, if your priority is buying a home, an FHSA (first home savings account) is ideal because it allows you to save for your first home tax-free. If you are saving for your child’s post-secondary education, an RESP (registered education savings plan) provides tax-free growth and government grants for eligible contributions. TFSAs (tax-free savings accounts) can be suitable for any goal, because you don’t pay tax on investment growth or when you take money out.

Individuals with disabilities and their families can contribute to a registered disability savings plan (RDSP). It’s among the most powerful savings vehicles available, Mr. Golombek says, providing government grants and bonds worth up to $90,000 based on eligibility.

Once you and your advisor have determined the registered vehicles that work best for your specific goals, set up automatic contributions on a weekly or monthly basis, says Mr. Golombek.

“That way, you don’t even see the money, eliminating the chance it will be spent elsewhere.”

5. Don’t forget your estate plan

While saving and investing helps build your financial future, estate planning helps to ensure your legacy is protected. Making arrangements for how your assets will be distributed after your death is crucial for anyone who wants to safeguard their loved ones and ensure their wishes are honoured.

“Estate planning is often overlooked because people mistakenly think estate planning is only for the wealthy,” Mr. Golombek says. “But it’s for anyone with financial assets who wants to support loved ones or even charitable organizations after they’re gone.”

A will is foundational to estate planning, determining how assets should be divided among beneficiaries. But estate planning is much more than just a will; it includes appointing attorneys for property and health, as well as tax planning and potentially life insurance strategies.

New year, new plan

Whether you’re just beginning to budget, thinking about your estate planning or tackling any other aspect of a financial plan, getting started can feel overwhelming, Mr. Golombek notes. But fortunately, no one has to go it alone.

Look to a financial advisor for help, he says.

“Good advisors can leverage their experience and training to your advantage, make necessary referrals to other professionals and assist to implement the right strategies to help achieve your goals.”