Your month-by-month financial checklist for 2025

Kick the year off by taking an afternoon to sit down and create a realistic monthly budget. Start by reviewing your cash flow, debt and investments. “You can’t plan where you’re going if you don’t know where you’re starting from,” says personal finance expert and financial coach Saijal Patel. This is also a good time to plan to start setting money aside each month for future vacations or other special occasions.

List essential expenses first, followed by savings and debt repayments, and discretionary spending last, says personal finance expert Preet Banerjee. “Consider using a budgeting app or spreadsheet to track progress, and break down annual goals into smaller monthly targets.”

Just remember that creating a monthly budget isn’t typically a one-and-done task. For the first two or three months at least, plan to review how well you did with sticking to the budget and make any necessary adjustments.

If you’re still thinking about making an RRSP contribution for 2024, February is the time to get it done; the deadline is March 3, 2025. Contributing to your RRSP before the deadline can lower your taxable income for the 2024 tax year, Banerjee says, which may result in a refund or a reduced tax bill. Plus, “you’re enhancing your long-term retirement savings — money that grows tax-deferred, giving it more time to compound. Even if retirement feels far off, building this habit early pays off significantly down the road.” Check your annual notice of assessment to find your RRSP contribution limit.

Don’t wait until right before the April 30 deadline to start getting your 2024 taxes organized, warns Shannon Lee Simmons, certified financial planner and founder of New School of Finance. Leaving taxes to the last minute means people often miss important details, including potential tax credits. “They may not find all the medical receipts or charitable donations because they’re trying to finish it in 24 hours,” Simmons says.

Collect T4s, T5s, RRSP and FHSA receipts, charitable donation slips, and any other relevant documents in a designated folder, whether physical or digital, says Banerjee.

Consider using tax software to guide you through the filing process, or if you’re feeling uncertain, seeking professional advice. “Even a short consultation with a tax professional can help you avoid costly mistakes and ensure you’re taking advantage of all available credits and deductions,” Banerjee says.

While self-employed Canadians have a slightly extended filing deadline of June 16, any taxes owing still have to be paid by April 30. It’s a good idea to file your return and pay as early as possible to avoid interest charges, Banerjee says. Consider using accounting software to stay organized and make sure you understand which expenses are deductible for your specific type of business, he adds.

Banerjee points out that people who are new to self-employment can be caught off guard when it comes to paying taxes because HST may not be remitted to the CRA the way it is with a salaried pay cheque. “Try to estimate how much you will earn for 2025 and plug that into a tax calculator,” Banerjee says. Then you can plan to set money aside throughout the year to cover it by updating your monthly budget.

Set aside some time to assess your insurance policies, including life, disability, home and auto coverage. “Premiums and coverage needs can shift over time, so a yearly checkup ensures you’re adequately protected,” Banerjee points out.

Reviewing your coverage can help ensure you’re not overpaying for unnecessary features — or if you’re underinsured in important areas. This is also when you can compare premiums across providers to see if you could save by switching. Don’t forget to confirm that any beneficiaries on life insurance policies are up to date and that coverage limits align with your assets and liabilities.

As school wraps up, now is a good time to get your summer finances in order. Summer often brings extra expenses, such as child care, day camps, weddings or vacations, and those costs can sneak up on you if you’re not prepared. “Take a moment to review your plans and create a budget for those expenses,” says Simmons. List everything — from camp fees and travel costs to wedding gifts and activities — and account for them in your planning. Adjusting your monthly budget for the summer months can help you stay in control and avoid overspending so that you can kick back and relax more.

Take advantage of the positive mindset that comes with warm weather. “Summer is a time of growth,” Simmons says, which makes it a great time to increase your financial knowledge. If you’re curious about investing or want to know more about saving for retirement, this is a great time to read a book or take a course to expand your knowledge.

Bobby Ning, managing director of the Financial Literacy Counsel, suggests reading “The Psychology of Money” by Morgan Housel to explore some of the pillars and principles of money management. He adds that there are a lot of financial influencers who provide tactics and strategies on social media.

You can also access free online personal finance courses through the Canadian government and some Canadian universities, including McGill.

As the summer winds down, take some time to review your investments to ensure they’re still aligned with your goals, Patel says.

If you haven’t started investing, look for ways to start small, Patel suggests. For example, see if your employer offers any programs or plans that match RRSP contributions or other sponsored incentives. Next, look into setting up a TFSA or RRSP. If you’re new at it, investing can feel overwhelming, says Patel. “You can always start with a robo-adviser, and then as you start educating yourself, you can set aside extra money and open up a self-directed account.”

“September feels like a mini-January,” says Simmons, with kids going back to school and more responsibilities returning. That’s probably why Simmons and her colleagues get “inundated” with financial meetings during the fall. “Take advantage of that administrative back-to-school energy,” she suggests.

This time of year serves as a reminder to revisit education savings plans (RESPs) if you have children, says Banerjee. “Contributing (to RESPs) now can help you benefit from government grants and keep you on track for future education costs,” he adds.

If you haven’t already, start setting up an emergency fund. Saijal recommends storing away about three months of household income, but “something is better than nothing.” This is especially important for those who work in volatile industries where you feel like your job may not be secure, Patel says. “If your profession is very niche, it may take time for you to find another job,” so you may want to have five to six months of income saved up. If you tap into those funds for any reason, don’t forget to replenish them, Patel says.

Create a holiday budget now to avoid overspending when the holiday madness hits toward the end of the year. “I’ve noticed that people who have the most amount of debt in January are people who didn’t start planning until the last minute,” Simmons says, adding that last-minute choices often lead to regret later.

Bonus tip: November is also the best time for year-end tax planning. Banerjee suggests considering tax-loss selling (a strategy used in non-registered investment accounts to reduce taxable income by selling investments that have decreased in value) where it makes sense, and making sure you’ve maximized tax-advantaged accounts.

If you want to celebrate the season of giving with a charitable donation, doing so by Dec. 31 can get you a tax credit for 2025.

The first $200 in donations to Canadian charitable organizations typically mean a 15 per cent credit at the federal level and 29 per cent for more than that. You can also get provincial tax credits for donating $200 or more that range between four and 25 per cent.

“It’s always great when people are in the giving spirit, and it may reduce your taxable income,” says Patel.