Nine Financial Goals for 2026

More than a quarter of Canadians reported feeling that their finances were in a constant state of chaos in 2025. Often, our sense of personal wellbeing is tied up in our financial security, but higher costs are chipping away at that confidence and comfort. It’s difficult to plan for your financial future when contending with increasing day-to-day expenses.

Enter: 2026. The New Year offers an opportunity to set aside some time to defining our financial goals and creating a roadmap to achieve them. While the economy and cost of living increases are not always in our control, we can take the reins when it comes to aspects of our money and financial planning. Not sure where to start? We’ve created a list of nine financial goals for 2026 to inspire you to begin building a more secure financial future. 

Key takeaways

• Setting financial goals can help you take charge of your finances, even in an uncertain economic landscape.

• Having sufficient life and health insurance and a will are two ways you can protect yourself and your loved ones.

• There is a wide array of tools that can support you in creating healthy financial habits and achieving your financial resolutions.

Budgeting, reducing debt, creating an emergency fund, and setting aside savings all contribute to a sense of financial well-being and peace of mind.

Why financial goals are important

Setting and achieving even the smallest financial goal is good practice for reaching the bigger goals we all aspire to: things like putting a down payment on a home, sending our kids to college, taking a bucket list vacation, and living comfortably in our retirement.

Each goal realized encourages us to keep pushing ahead to achieve more. But meeting financial goals isn’t only about the ability to buy the things we dream about. There’s a psychological element at play, too. Planning, budgeting, and accumulating wealth can reduce the stress and worry that comes from being unprepared to face financial obstacles. And practicing healthy financial habits helps empower us to make smarter decisions about how we manage our money. Sounds good, right? So, let’s get started.

1. Make a list of financial goals  

The New Year is an ideal time to make money resolutions that you can track and measure, allowing you to see how far along you are on the path to reaching a specific goal over the yar.

Set some goals for 2026 by asking yourself what are you saving for and why. Is it a trip to a destination you’ve always wanted to visit? Are you saving to fund a small renovation or big addition to your home? Are you hoping to buy a new car to meet the needs of a growing family? Or maybe it’s something smaller, like a laptop upgrade or replacing an ageing appliance. Saving becomes simpler, too, if you take advantage of the financial tools your financial institution offers.

Perhaps your goal is to pay off debt or learn how to invest. Start small and rank your goals in order of your ability to achieve them. Once you’re crossed smaller goals off your list, hitting those bigger goals will feel easier.

State your goals clearly so that you can measure your progress. Once you’ve determined your personal financial goals, break down the steps you need to take to get there. It could be a monthly contribution set aside towards savings or reading a book on how Canadians can invest and grow their money.

2. Make a budget

If you don’t already use one, making a budget can help you to steer clear of impulse purchases and cut down on unnecessary expenses. It gives each dollar a purpose.

There are many ways to construct a budget. Start simple with a basic spreadsheet or budgeting app, one that feels easy and intuitive to you. The easier the budgeting tool feels to use, the more likely you’ll stick with it.

Most tools ask that you look at your spending first to figure out which expenses are fixed (such as mortgage, rent, car payments, your phone bill) and which are variable. Typically, variable expenses are ones you might be able to reduce or cut out altogether, so there’s money available to reach other goals.

Budgeting pros recommend putting into practice the 50-30-20 rule. Here, 50 per cent of your income is spent on things you need (like housing, groceries and utilities), 30 per cent is set aside for wants (a new pair of sneakers or a night out at the movies) and 20 per cent is directed into your savings accounts or investments.

A budget is more than a plan to manage your money, it’s also an accountability tool that reminds us to tune out the siren song of the latest gadget or sales item and encourages mindful spending. If you’re new to budgeting, keep in mind that your budget isn’t set in stone. It may need some tweaks to account for fluctuations in spending or income. Regularly reviewing the budget will help you to make adjustments according to your unique needs and financial picture.

3. Reduce debt

In the third quarter of 2025, Canadians were carrying an average of $27,100 in non-mortgage debt, bringing the total to $673 billion – an increase of 4.3 per cent year-over-year. Incorporating debt payments as part of your budget is a key step on the path to increased savings and financial security.

It can be intimidating to take a hard look at debt, especially when it’s coming from more than one source. Many Canadians have debt tied to multiple credit cards, student loan payments, car payments, or lines of credit. Some forms of debt could be integrated into a single consolidation loan, often at lower interest rates. Speak to a financial advisor to learn more. 

Another key factor in reducing debt is avoiding adding any new debt to the amount you’re already carrying. Having a budget helps set parameters around spending and prioritize debt payoff.

4. Build an emergency fund

Sometimes an unexpected cost crops up and throws you off the path towards your financial goals. Major car repairs, your washing machine dies, an unforeseen vet bill – these are things that we can’t always plan for. An emergency fund means there’s money to dip into when extraordinary expenses arise.

Having an emergency fund, even a small one, means you’ve got funds available for extraordinary expenses, instead of putting it on a credit card or taking it out of savings.

Ideally, an emergency fund should cover your basic living expenses for three to six months. If you’re starting from zero, this goal can seem more than a little daunting. Start small, for example to save the equivalent of one pay cheque. Incorporate building an emergency fund into your budget so that it becomes part of your fixed expenses.

It’s also a good idea to keep an emergency fund in a separate account, ideally one that pays a higher interest rate than an everyday banking account. You could even automate transfers so that you’re saving for emergencies without having to think about it.

5. Assess your life insurance needs

While life insurance needs will depend on your age and financial responsibilities, most Canadians can benefit from the protection offered by a life insurance plan. Older Canadians may want to ensure they have enough insurance to cover end of life costs like unpaid debts, medical expenses, and funeral arrangements while perhaps leaving a small legacy for their loved ones.

Younger people with dependents should consider a life insurance policy that will support their family in the event you aren’t around. Regardless of your insurance needs and goals, the New Year is a good time to review and adjust your current policy or to look into purchasing a plan for the first time.

6. Protect against injury and illness

Life insurance isn’t the only type of protection you and your family could need. The New Year is a good time to assess your injury and illness insurance coverage – whether you already have policies in place or might currently lack coverage and see if it meets your family’s needs.

Needing protection from short- or long-term disability is more common than you might realize. One in three Canadians will be unable to work due to a disability and workplace benefits may not give you enough coverage. This disability tool calculator will help you figure out how much protection you need. If you’re diagnosed with a serious illness, such as cancer or a heart condition, then critical illness insurance provides financial support in the form of a one-time lump sum benefit. This money allows you to focus on your heath and recovery by offsetting costs, covering living expenses or accessing specialized care – without the added burden of financial strain during an already challenging time.

7. Make a will

Estate planning is an often-overlooked component of defining your financial goals. What do you want to happen to the assets you’ve worked so hard for at the end of your life? Your will should indicate how you want your assets – everything from property to personal items to the death benefit payout on your life insurance policy – to be divided among your family, loved ones, or chosen charities. Having a will ensures that your wishes are followed. Otherwise, dying without a will means that your estate will be distributed according to the laws set out by the province where you live.

8. Maximize your RRSP contribution

Registered Retirement Savings Plans (RRSP) are one of the most powerful financial tools available to maximize your retirement savings. An RRSP is a tax-exempt fund designed to help save for the future while also reducing the amount of tax you pay in the present. Your annual contributions are tax-deductible, so it’s a smart strategy to contribute each year. Add it to your calendar now: The cut-off date for 2025 contributions is March 2, 2026.

Your RRSP contribution room is typically 18 per cent of your earned income or a maximum of $32,490 for 2025.  If your employer makes contributions to a pension or retirement plan on your behalf, that must be subtracted from the amount you contribute on your own. If you haven’t been contributing to your RRSP, you probably have an unused amount from the year or years before. You can check your most recent CRA Notice of Assessment to find how much you contribution room is available.

9. Give back to others

Time to circle back to that sense of wellbeing we talked about earlier. Science-backed studies  show that giving makes us feel good. Whether it’s time, energy or money, charitable giving brings a sense of purpose and meaning to our lives. How you do this is up to you: donating money to a cause you care about, which often comes with tax benefits, or spending time working for a volunteer organization that aligns with your values are equally impactful ways to give back. You may also want to include a charity or non-profit as one of the beneficiaries in your life insurance policy, leaving behind a legacy of meaningful giving.

Tips for sticking with your financial goals

Deciding to take control of your finances and work towards your goals is step one in the process of achieving them. Step two is sticking to the plan! Here’s how to stay on track and save:

• Set SMART goals. These are goals that are specific, measurable, achievable, relevant and time-bound (you guessed it, it’s an acronym). A SMART goal looks like this: “By December of 2026 I will have saved $2,000 for the cross-country road trip I plan to take the following year” or “By April, I will have added $500 towards my emergency fund.” Prioritize the SMART goals that will have the biggest impact on your financial health.

• Don’t allow yourself to be intimidated by the larger financial goals you’ve set for yourself like paying down debt or saving for retirement. Break these big goals down into smaller steps or amounts so that they feel manageable – and don’t forget to acknowledge each milestone achieved.

• Keep track of your progress. Using a simple spreadsheet or savings app will let you see how far you’ve come and how close you are to your goal. There’s no better motivator to keep saving than to see those savings grow.

• Stay accountable. Keep using the budget you created to monitor and track your spending. 

• Be flexible and adjust. If, for example, your income changes, alter your financial goals to align with this. 

• Automate savings and investment contributions using the features available to you through your online banking – set it and forget it.

Putting it all together

If you’re finding it hard to stick with financial goals in 2026, it can help to remind yourself what your why is. Sometimes you don’t have to look much further than your family or loved ones. You’ve set your financial goals for a reason, each step is a win, and your efforts come with a big payoff. A financial advisor or insurance broker can guide you towards achieving these goals. Don’t hesitate to reach out and ask for their advice.

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