Don’t make resolutions this year—break them.
Personal finance is a top calendar-turning priority for many Canadians,1 with perennial goals like “save more,” and “pay off debt” near the top of the list.2 Great, yes, do those things—in fact, we can help. But here are three common financial resolutions that deserve a second look:
Resolution 1. “Every penny counts—and I’m saving all of them”
Saving money can be a little like exercising or eating well. In early January, our calendars become a celebration of verbing— “Spin!”—and our refrigerators a celebration of kale. By February? We all know how that story goes.
Financial crash diets are just as unsustainable—and let’s be honest, you’re going to need some comfort.
In a recent LinkedIn article entitled “In defense of avocado toast: Financial planning for young lawyers,” lawyer Allan Ritchie makes a compelling case for small comforts.
Most lawyers start their careers carrying student debt, earning modest salaries, and absorbing the high cost of entry into the profession—big-city rents, daily commutes, professional wardrobes. For Ritchie, the early years aren’t about saving at all. Instead, the most important financial priority for young lawyers should be to “remain in the profession long enough to reach the point where their income meaningfully exceeds their obligations.”
Build it, basically, and then pivot aggressively to savings and investments when your income and budget allow.
This makes a lot of sense. At this point in your career, your career itself is the asset and you are the investment. And while you’re doing all that investing-in-yourself (which is really code for working), Ritchie advises indulging in the occasional luxury:
“Small luxuries help maintain balance. A latte before court, a dinner out after a difficult week, or a short restorative trip can provide genuine relief. Travel, in particular, can restore perspective in a profession that rarely slows down.
These comforts do not undermine your long-term financial future. Staying in private practice long enough to reach your investment moment is far more consequential.”3
A favourite boss once told us we deserve nice things. What a wonderful thing to hear—and a valuable reminder for anyone who’s dedicated themselves to difficult and meaningful work. Work is its own reward, but sometimes nice things don’t hurt.
A better goal: Build a budget that leaves room for living—because future you needs you at your best.
Resolution 2. “This year, I’m cutting up every card in my wallet”
Credit card companies profit from “the present bias”—our expensive human tendency to favour immediate gratification over long-term reward. We impulse-buy that red-and-black-flecked chore coat and scrimp on our retirement savings. No wonder Canadian non-mortgage debt levels are soaring: collectively, we owe more than $673B, and the average credit card balance sits just under $5,000.4
Pay nothing but the monthly minimum, and it might take three years and 11 months to eliminate that $5,000—plus nearly $2,000 in interest along the way.5
So, if you’re tempted to cut up your credit cards in 2026, the instinct is good. But instead of destroying them, try something gentler: put them on ice.
Credit builds your future borrowing power. It’s essential for major purchases like a car or home, and the length of your credit history plays a big role in your score. It’s not enough simply to exist financially—a mortgage is a long relationship, and lenders want borrowers with a proven history of paying.
Because that’s the key word: pay.
If you have outstanding credit-card balances, tackle them deliberately. Start with the most expensive debt first—throw everything you can at the 19.99% card while paying minimums on the rest. Once that card is paid off, roll the strategy down the line until you’re debt-free.
A better goal: Don’t cut your credit. Build it.
Resolution 3. “I’m finally going to max out every investment account.”
• TFSA (2026): $7,000
• FHSA (2026): $8,000
• RRSP (2026): 18% of 2025 income or $33,810—whichever is higher
And all three accounts have carry-forward room, allowing you to catch up as life allows.
If you can maximize these plans, fantastic—the incentives are real.
But before doing the financial equivalent of looksmaxxing, consider something decidedly less glamorous: a safety net. More than a third of working Canadians don’t have enough savings to cover three months of expenses in the event of a job loss or medical emergency. Worse, many aren’t confident they could find $2,000 if they needed it next month.6
A three-to-six-month cushion—cashable, boring, stable—keeps you afloat when life goes sideways. The safety net is your first investment.
A better goal: Build a safety net before you build an empire.
Related: Rainy day savings, how much do you need and where do you start?
We can help
Goals are a big part of financial planning, the biggest. Resolutions? Less so. A financial plan clarifies your goals and outlines the steps you’ll have to take to reach them. And because we’re a not-for-profit, we offer financial planning services for the low, low price of free.
Sources:
1. YouGov.com: “The most popular resolutions among Canadians,” January 2020.
2. Ipsos: “Finances, forecasts and fireworks: Four in Ten (41%) of Canadians are hailing in the new year with a resolution about their financial wellbeing,” December 2021.
3. LinkedIn Pulse, Allan Ritchie, “In defense of avocado toast: Financial planning for young lawyers,” November 22, 2025
4. Global News: “Almost four in 10 Canadians took on more debt last year, survey shows,” November 28, 2025
5. Government of Canada, Credit Card Payment Calculator. This calculation assumes a credit card balance of $5,000 and an annual interest rate of 18%.
6. Financial Consumer Agency of Canada: 2019 Canadian Financial Capability Survey
