The new year always marks new starts and fresh opportunities, meaning now is the perfect time to get proactive about your finances. Taking small, intentional steps today can save you from stress down the road, allowing you to focus on your goals instead of scrambling to catch up (and let’s be honest, there’s nothing better than being set up for success)! From tax planning to making the most of your investment accounts, here are some things to consider to set yourself up for financial success in 2025.
Stack Your TFSA and RRSP
Your Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) are game changers for long-term wealth building. Haven’t contributed yet this year? Topping up early gives your investments more time to grow. If you aren’t sure what the difference is, I’ve included a bit of a description below.
- RRSP: Great for immediate tax deductions and retirement savings.
- TFSA: Ideal for long-term savings, and if you want flexible, tax-free withdrawals in the future.
Consider your options within the landscape of your financial situation, but having both an RRSP and TFSA can help you to maximize your investments. My pro tip is to automate your periodic contributions to ensure you never miss a beat so you’re always building your wealth, and chat with your financial professional if you have any questions.
Get Organized with Taxes (and Save)
Tax season may not spark joy, but staying on top of it now could save you headaches—and money—later. I recommend that people start preparing their taxes early! The deadline is April 30 for most taxpayers, but make sure you visit the CRA website for specific dates.
Start by reviewing your income, deductions, and credits to avoid leaving cash on the table. Had a major life event recently? Starting a business, buying a home, or welcoming a baby can all impact your taxes, so adjust accordingly. And if you’ve been charitable (hello, holiday giving!), keep those donation receipts handy for a boost to your return.
Of course, we always defer to our tax experts when we have questions—you should too.
Give Your RESP a Boost
If you’re saving for your child’s education, your Registered Education Savings Plan (RESP) is your best friend. In this account, contributions grow tax-free and can earn up to $500 annually in government grants. Even small, consistent contributions can snowball into a significant sum when it’s time for those tuition bills. I’m sensing a theme here—small payments over time.
Quick tip: If you set up an automatic monthly transfer, it may be easier than trying to make a larger lump sum deposit.
Make Regular Contributions Your Superpower
Consistency is the key to successful investing. Setting up automatic transfers to your TFSA, RRSP, or any other savings goal means you’re building for your future without having to think about it. I love this! Regular contributions also let you take advantage of dollar-cost averaging, which smooths out the highs and lows of the market. Less stress, more growth—it can be a win-win.
Set Up Your FHSA
The First Home Savings Account (FHSA) is an account that I’ve talked about a lot over the last couple of years. It’s a great option for first-time home buyers as they save for their first home. Here’s the scoop:
- Contribute up to $8,000 annually, with a lifetime maximum of $40,000.
- Offers similar tax deductions as an RRSP.
- Your money grows tax free in the account like a TFSA and isn’t taxed when withdrawn for the purchase of your first home.
- Hold the account for up to five years, giving you time to save while benefiting from tax advantages.
If buying your first home is on the horizon, this is a tool you won’t want to overlook. Be sure to consult with your financial professional to discuss or check the qualifying requirements on the CRA Website.
Final Thoughts: Plan for Success
Starting the year with a clear financial plan isn’t just smart—it’s empowering. By maximizing your TFSAs, RRSPs, RESPs, and exploring the FHSA, you’re laying the groundwork for a secure financial future. Whether you’re tackling short-term goals or building long-term wealth, the key is consistency and intention.
Ready to make 2025 your most financially confident year yet? Let’s connect and create a plan tailored to your goals.
Here’s to a year of growth, stability, and success!
