As the year wraps up, many of us feel the urge to reset—our homes, our routines, our goals. But there’s one reset that makes the biggest difference to your financial wellbeing: a clear, honest end-of-year financial review.
For many people, this is the step they avoid the most. Looking at your financial situation—especially after a difficult year—can feel uncomfortable, stressful or even discouraging. It’s completely normal to want to look away when the picture isn’t as tidy as you’d hoped. But avoiding your finances doesn’t protect you; it actually makes things harder. You can’t change what you can’t see. Gaining visibility is the first and most empowering step towards getting back in control.
Whether 2025 was your most organized year yet or felt like a financial roller coaster, taking a few hours in December to look at your money—where it went, what worked and what needs to change—can set you up for a confident, stress-free 2026. It’s one of the most powerful tools you have for avoiding unnecessary debt and taking control of your financial future.
1. Start by Knowing Your Numbers
Before making new goals or resolutions, get a clear picture of where you currently stand. Gather the basics:
- Your total income for the year
- Your average monthly expenses
- Your current debt balances (credit cards, loans, lines of credit)
- Your savings contributions (RRSP, TFSA, emergency fund, etc.)
- Your credit score, if available
Review your bank and credit card statements for the past 12 months. Most online banking platforms show you a breakdown of your spending in a neat chart. Are you surprised by anything? Many people underestimate how much they spend on groceries, dining out, subscriptions or impulse purchases—especially during busy months.
This step isn’t about guilt. It’s about clarity. Knowing your patterns gives you the power to change them.
2. Evaluate What Worked (and What Didn’t)
Look for trends in your financial behaviour:
- Did your budget work most months?
- Were there certain seasons where spending crept up?
- Did any unexpected expenses push you off track?
- Did you rely on credit during emergencies or for everyday spending?
This is also a great time to ask: How did your finances feel this year? Overwhelming? Manageable? Stressful? Stable?
Financial health isn’t just about numbers—it’s about confidence and peace of mind. Your review should reflect both.
3. Create or Update Your Emergency Buffer
If this year taught anything, it’s that life can change quickly. An emergency fund—whether it’s $500, $1,000 or more—is one of the strongest protections against debt.
During your year-end review:
- Check how much you currently have saved for emergencies
- Decide whether you want to grow this fund in 2026
- Map out a realistic monthly contribution (even $20–$50 makes a difference)
If building an emergency fund feels overwhelming, start small. Progress is progress.
4. Review Your Debt and Make a Payment Strategy for 2026
December is the perfect time to take stock of your debt—not to judge yourself, but to plan ahead. Write down:
- All balances
- Interest rates
- Minimum monthly payments
Then consider: What would progress look like next year? Maybe it’s paying off one credit card, reducing overall balances by 10%, or simply avoiding new debt.
If your debt feels unmanageable or you’re juggling bills, this is also the perfect time to reach out to an accredited non-profit financial counsellor. They can review your finances with you, explain your options, and help you create a plan—not just for January, but for the long term.
5. Build a 2026 Budget That Reflects Your Real Life
Now that you know what this year looked like, build a budget that supports the life you want next year.
A strong 2026 budget should:
- Include realistic amounts for essentials (housing, food, transportation)
- Account for rising costs where applicable
- Build in sinking funds for things like gifts, kids’ activities, car repairs or vacations
- Reduce categories that consistently cause overspending
- Include savings—even if it’s small
Remember: a budget isn’t meant to restrict you; it’s to give your money direction and reduce stress.
When building your budget, use last year’s actual spending rather than “ideal” spending. A budget based on reality is the one you’ll stick to.
6. Set 2–3 Achievable Financial Goals
Avoid the temptation to create a long list of resolutions. Instead, pick a small number of meaningful, achievable goals, such as:
- Paying down a specific debt
- Saving a set amount
- Cutting back on one spending category
- Building an emergency fund
- Tracking expenses for the full year
Make your goals measurable and time-bound. “Spend less” is vague; “Spend $100 less monthly on takeout” is actionable.
7. Look for Opportunities to Reduce Financial Stress
A year-end review is also a chance to identify tools or habits that can simplify your financial life next year:
- Automate bill payments
- Automate savings contributions
- Cancel unused subscriptions
- Set up account alerts
- Use a budgeting app
- Speak with a credit counsellor for guidance
Small changes add up—especially over a full year.
8. Reach Out Early If You Need Support
If your review leaves you feeling overwhelmed, you’re not alone. Many people don’t look at their finances because it feels scary, stressful or complicated. But you don’t have to figure everything out on your own.
An accredited financial counsellor can help you:
- Create a workable budget for 2026
- Review your debts and explore repayment options
- Build confidence in your financial decisions
- Avoid high-interest debt
- Move forward with a clear, personalized plan
Reaching out now—before the new year begins—can help you start January on the right foot. Contact us today for a free consultation.
A New Year, A Fresh Start
An end-of-year financial review is one of the best gifts you can give yourself. It creates clarity. It reduces stress. And it gives you a roadmap to make 2026 your strongest financial year yet.
It’s never too late to take control of your finances. If you’re not sure where to start, our team is here to help—confidentially, without judgment, and with your goals at the centre of the plan.
