Start the Year Strong: Financial Moves to Consider This January

As a new year begins, January is an ideal time to review your finances and set clear goals for the year ahead. Whether you’re focused on saving more, managing debt, or investing with confidence, taking early action can make a meaningful difference. Here are several smart financial moves to consider as you start 2026.
 

1. Take Advantage of New TFSA Contribution Room

Each January, Canadians receive additional Tax-Free Savings Account (TFSA) contribution room. The annual TFSA limit for 2026 is set by the federal government, and any unused contribution room from prior years continues to carry forward.

The TFSA remains one of the most flexible and powerful savings tools available, offering tax-free growth and withdrawals. It can be used for short-term goals, emergency savings, or long-term investing. Reviewing your available contribution room early in the year can help you create a plan to maximize this opportunity.
 

2. Plan Your RRSP Contributions Ahead of the Deadline

Contributions to a Registered Retirement Savings Plan (RRSP) made in the first 60 days of the year can generally be deducted on the prior year’s tax return. Taking time in January to review your RRSP contribution limit allows you to decide whether a lump-sum contribution or ongoing monthly deposits make sense for your situation.

Strategic RRSP planning can help reduce taxable income while keeping long-term retirement goals on track.
 

3. Revisit and Refine Your Financial Goals

The start of a new year is a natural checkpoint for your financial plan. Are your savings strategies still aligned with your priorities? Has your income, family situation, or timeline changed?

Setting or refining clear objectives for 2026—whether it’s building wealth, preparing for retirement, or saving for a major purchase—can help keep your plan focused and intentional.
 

4. Review Your Debt Repayment Strategy

If you’re carrying high-interest debt, such as credit cards or unsecured loans, paying it down can be one of the most impactful financial moves you make. Reducing interest costs can free up cash flow for savings and investments.

This may also be a good time to explore options such as consolidating debt or adjusting repayment schedules to better suit your current circumstances.
 

5. Automate Your Savings and Investments

Consistency is key to long-term success. Setting up automatic contributions to your TFSA, RRSP, or non-registered accounts can help ensure you stay on track throughout the year. Automating your plan removes the guesswork and helps make saving a habit rather than a chore.
 

6. Get Organized for Tax Season

Although tax filing may still feel far off, organizing your documents early can reduce stress and help uncover potential deductions or credits. January is a good time to ensure your records are in order and to flag any changes that may impact your tax situation.