Checking in on your finances may not feel as exciting as planning a vacation or setting big New Year’s resolutions, but it’s just as important. With these tips, you can take control of your finances and build a more secure and stress-free future.

No matter where you are in your financial journey–whether you’re a student learning how to create a budget or planning to buy your first home–these financial tips are here to help you get a head start in 2025. 

8 Smart Financial Tips for 2025

1. Reflect on Your Financial Habits

Start the new year by reviewing your spending, saving, and borrowing habits over the past year. Did you overspend on things like food and drinks? Could you have saved a bit more money for your emergency fund? 

By reflecting on what worked and where you may have overspent, you can find opportunities for improvement. Identify habits that helped or hurt your financial progress to make better, healthier routines going forward. 

Instead of mindlessly tapping your credit card, pay attention to what you spend money on and where you can reduce spending. For example, instead of getting a latte twice a week on your way to work, reduce it to once a week to save that $6 or $7 – which can add up to over $300 by the end of the year! 

2. Create Smart and Achievable Goals 

Set clear, realistic financial goals. Instead of vague goals like “save more money” or “pay off debt,” make specific goals like “pay off $10k of credit card debt by June.” Break large goals into smaller, actionable steps so they’re less overwhelming. 

Your personal financial goals should be ambitious but also SMART: Specific, Measurable, Attainable, Realistic, and Time-Bound. 

Focus on prioritizing your goals based on the level of importance. For example, you’d probably want to pay off credit card debt before saving money for a vacation. 

3. Create a Budget 

Creating a budget is the best way to keep track of your money. More specifically, how much you have, how much you spend, and where it’s all going. 

To create a budget, assess your income and fixed expenses, like rent, bills, and groceries. Then, put money towards savings, repaying debt, and discretionary spending. Use tools like spreadsheets and budgeting apps to help you stay on track. 

Determine your top priorities for the year to develop your ideal budget. Maybe you want to save $10,000 in an emergency fund or pay off $20k of debt–whatever it is, a budget is your best tool to help. 

The key to creating a successful budget is flexibility. Review it monthly to accommodate unexpected changes and aim to leave room for savings and investments. 

4. Reduce Debt 

If you have any debt from credit cards or loans, focus on paying it off this year. Tackle your highest-interest debt while making minimum payments on the others. The avalanche or snowball method can be a great strategy for debt repayment. 

Reducing debt saves you money, improves your credit score, and gives you greater financial flexibility. If you can tackle this, you can handle anything. 

5. Consolidate Debt 

If you have multiple forms of debt (i.e. different loans or credit cards), consolidating them into a single payment can simplify things and potentially reduce your interest rate. Consider getting a balance transfer credit card with a small fee and a lower interest rate (13.99% to 17.99%). 

Some top balance transfer cards include the CIBC Select Visa Card and the Scotiabank Value Visa Card. Note that they do not come with any rewards or cashback, but this is a great way to consolidate and tackle debt head-on. 

Read the terms and conditions carefully to ensure debt consolidation is the right move for you, as you don’t want to take on more debt than you have to. 

6. Invest and Save

Once you’ve reduced or paid off your debt, opening a high-interest savings account and investing your money is one of the best ways to grow your wealth. Open or contribute to accounts such as your RRSP or TFSA, or diversify your portfolio with index funds or ETFs–but do your research! Here’s a great resource by Wealthsimple. 

Looking for the best high-interest savings account in Canada? Check out Wealthsimple, EQ Bank, and Tangerine. 

7. Assess Your Insurance Coverage

Most of us often overlook insurance coverage, but it's a crucial aspect of financial wellness. Review your car, health, life, and tenant insurance policies to ensure they align with your needs. Maybe you’ve moved addresses or are making a little less money than you did a year ago–you might want to look into cheaper policies or switch providers. 

Looking for affordable tenant insurance? Check out Walnut. If you bundle your insurance and phone or internet bills with Chexy, you can save up to 0.30% on processing fees. 

8. Choose the Right Credit Cards 

Not all credit cards are equal. Choose one that aligns with your lifestyle and financial goals. Some offer rewards in the form of points or airline miles, while others give you cashback on some of your biggest monthly expenses. 

Rapid fire, here are a few of our top picks:

• Scotia Momentum Visa Infinite Card: Get up to 4% cashback.

• American Express Cobalt Card: Earn up to 5x the points on every dollar.

• American Express Aeroplan Reserve Card: Earn up to 3 Aeroplan points on every dollar.

Along with choosing a card that fits your lifestyle, consider the annual fees and interest rates to ensure the perks outweigh the costs. 

Use your credit card responsibly and pay off your balance in full by the due date each month to avoid interest charges, late fees, or a potential impact on your credit score. 

Here are some helpful resources to help you learn more about credit cards: 

• How Do Credit Cards Work?

• How to Apply for a Credit Card

• The Benefits of Credit Cards 

Ready to level up your finances? Use Chexy to pay your rent and bills with your credit card, earn rewards, and build your credit score. Get started today. 

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