How I'm Planning for the Year (2026)

As the new year begins, many of you—just like myself—are looking for a financial reset. It’s that time to take a snapshot of your current financial picture, plan out the year ahead, and perhaps figure out what to do with a raise, a new job offer, or a promotion.

Back to Basics: The Cashflow Snapshot

Personally, I've been tracking my monthly income and expenses for the last couple of years. This habit gives me a clear idea of my monthly cashflow and, more importantly, exactly how much I spend in each category.

There are countless tools and apps online designed to help with budgeting or expense tracking, but honestly, a simple Excel sheet or Google Sheet with columns for months and rows for income/expense categories is all you really need to get started.

If you haven't already started tracking your finances down to the category level, I highly recommend it. Self-awareness is the first step. You need to know exactly where your money is going before you can tell it where to go.

Once you figure out how much cash you have left after your expenses—or identify areas where you can trim excess spending—you can decide where to route this surplus. Should it go towards paying down debt? Savings? Investments?

Assessing Liabilities

Following my own advice, I start my year by checking where my liabilities stand.

Since my debts are currently quite low-interest (or no-interest, in the case of my student loan), I continue to pay them down with the minimum required payment. I’m comfortable putting more cash into my investments because they typically track the overall market and have a historic rate of return that outperforms the interest rate on my liabilities.

However, if you have high-interest debts that are drowning you, consider if you have methods to refinance at a lower rate or consolidate them. It might make the debt more manageable while you tackle it aggressively.

The Subscription Audit

After checking my major liabilities, I frequently review the subscriptions and fees I might be getting charged to see what can be changed or cancelled. It's easy to let these slide, but they add up.

Some often-overlooked items include:

• Automotive Insurance: Shop around. Loyalty to insurance companies rarely saves you money.
• Phone & Internet Plans: Deeply competitive markets mean there are often better deals for new (or complaining) customers.
• Banking Fees: If you're paying monthly fees, look for no-fee alternatives.

With how fast entertainment and technology change, double-check if you're still paying for a streaming service or app you haven't opened in months.

Tax-Advantaged Accounts & Benefits

With the new year comes increased contribution limits for tax-advantaged or sheltered accounts like the TFSA, FHSA, and RRSP.

Along with tracking my income and expenses, I strictly track my contributions to these accounts. Over-contributing can be costly due to penalties, and the numbers you see on your CRA account page don't always update in real-time.

If you're eligible for these accounts, they are often the best place to put and invest your money. The specific account you choose and the investments you purchase will depend on your goals and risk tolerance.

Don't Forget Work Benefits

Take a moment to review your work benefits:

• RRSP Matching: If you aren't taking full advantage of this, you are leaving free money on the table. It is an instant, guaranteed return on your money.
• Pension & Equity Plans: Double-check your enrollment status.
• Health Insurance: See what benefits you have available. Maybe it's time to treat yourself to that massage you've been putting off.

Strategy: Pay Yourself First

Now that I have a general idea of my savings rate (money left over each month) and a rough idea of my financial goals, I take it a step further. I plan out exactly how much money I'd like to invest into various accounts over the year.

This is the essence of "paying yourself first."

I follow this strategy religiously. I have a comfortable buffer for monthly expenses, so the moment I get paid, I move my budgeted money around to investments, savings goals, and debt repayments—all within the first day. The money left over is then used for my expected expenses (both needs and wants). This removes the temptation to spend what should be saved.

Finding Balance: Quality of Life

Finally, I take some time to reflect on my mindset. Am I being too strict? Too relaxed?

Over the years, I've been extremely focused on financial goals, often at the expense of making life experiences. This year, after assessing my raise and looking back on my progress, I realized I'm in a position where I'm happy with my financial trajectory.

I've decided to allocate more towards quality of life upgrades—focusing on hobbies and taking vacations this year. Everyone's goals and priorities are different, but it's important to remember to live a life you can look back on fondly. Don't be too hard on yourself.

Rinse and Repeat

Before you know it, you'll have a stronger understanding of your financial situation and even better control over it. Beyond this yearly reset, it's always good to learn new financial concepts throughout the year as you reach new goals, milestones, or comfort levels.

Here's to a prosperous 2026!