The December Money Reset: 12 Moves to End the Year Strong in Canada
For individuals, families, and side-hustlers who don’t want to “wing it” again next year.
December has a funny way of squeezing everything into one month: social plans, travel, family expectations, and… financial reality.
Most people think tax season is when “money stuff” happens. In reality, December is the last month where you can still change how this year reset looks on paper. Once January 1st hits, your 2025 financial story is largely written — the tax return in April is just the official narration.
This isn’t about perfection. It’s about doing a few strong things now so you start next year with less chaos and more control.
At Solstice Partners, this is how we think about December for individuals and families.
Take a One-Page Look at Your Year
Before you get lost in details, answer four questions:
- Roughly how much did you earn this year? (Employment, business, side income, rental, investments.)
- Did your life change? (New child, move, marriage/separation, job switch, start/close business.)
- What big money moves happened? (Major purchases, debts paid down, debts added, investments made.)
- Do you expect a refund, a balance owing, or have no idea?
Even an approximate picture is enough to guide your December decisions. At Solstice Partners, we often start with just a simple “Year Snapshot” and work from there.
Do the “Receipts Sweep”
Most people leave money on the table not because they don’t qualify for credits, but because they can’t prove anything.
In December, do a 60–90 minute sweep:
- Log in to your email and search: “receipt”, “invoice”, “statement”.
- Download PDFs from your health plan, pharmacy, dentist, optometrist.
- Ask childcare providers for annual summaries.
- Collect tuition slips, donation receipts, union/professional dues.
Create one single folder (digital or physical) labeled:
2025 – TAX – [Your Name]
Drop everything in there. Future-you in March will feel like you sent them a gift from the past.
Decide: “RRSP, TFSA, FHSA or What Mix?”
We won’t get technical here, but conceptually:
- RRSP helps lower this year’s taxable income and build retirement savings.
- TFSA doesn’t lower tax now but grows tax-free and is flexible.
- FHSA (for first-time homebuyers) is like an RRSP + TFSA hybrid.
December is the month to plan the amounts, even if you contribute in January/February for RRSP. You don’t need to guess. A simple projection can answer:
- “If I contribute $X, what’s my likely tax saving?”
- “If I don’t contribute, how big might my balance owing be?”
That’s exactly the type of modelling Solstice Partners does in short year-end consults.
Review Investments Without Emotion
December is an emotional month. That’s exactly why we don’t want emotion running your investment decisions.
Ask:
- Did I sell any winners with large gains this year?
- Do I have any clear losers I no longer believe in?
- If I sell, do I understand the tax impact?
- Am I holding things in the wrong places? (e.g., high-interest investments in taxable accounts when they could sit in RRSP/TFSA.)
This isn’t about day-trading. It’s about cleaning up and avoiding unnecessary tax.
Use December to Be Honest About Debt
Debt avoidance is understandable, it’s uncomfortable. But ignoring it doesn’t make it disappear.
Take 30 minutes to list:
- Credit card balances
- Lines of credit
- Car loans
- Personal loans
- “Quiet” debts you don’t like to think about
Then ask:
- What interest rate am I paying?
- Which debt is the most dangerous? (Often, not the biggest — but the highest interest.)
- Can I put a small lump sum in December or January to knock out the worst offender?
Sometimes, the smartest December move is not another purchase, it’s one strategic debt payment that permanently improves your cash flow.
Don’t Forget the “Human Side” of Money
Money is not just math, it’s relationships.
December is a good month to:
- Talk to your partner about shared money goals for next year.
- Decide if you want joint targets (vacation, down payment, debt-free date).
- Check if your wills and beneficiaries reflect your current reality.
It’s uncomfortable. But so is having outdated documents when you actually need them.
Clean Up Side-Hustle & Freelance Chaos
If you’ve had any independent income:
- Pull all income screenshots/invoices into a single sheet.
- Make a list of business-type expenses: software, phone, internet portion, supplies, advertising, mileage.
- Jot down what the business actually earned after expenses.
Even if it’s small, it matters. And it can reduce your tax bill if handled properly.
Solstice Partners frequently takes these messy side-hustle notes and turns them into clean, CRA-ready schedules.
Decide Your “January 1 Rule”
A powerful exercise:
“If I could change just one money habit on January 1, what would it be?”
Examples:
- I check my banking and cards once a week instead of once a month.
- I automate a $200 monthly transfer to a savings or investment account.
- I review subscriptions and cancel one every month.
- I stop making purchases after 9 p.m. (late-night spending is brutal).
Write it down. One rule > ten vague wishes.
Give Intentionally, Not Out of Guilt
In December:
- Gifts
- Donations
- Help to family
…all spike.
The key is to plan giving instead of reacting:
- Set a total amount you’re comfortable with.
- Decide what portion is gifts, what portion is donations.
- For donations, choose registered charities and keep the receipts, they’re emotionally and financially rewarding.
Map Out Big 2026 Financial Events
What might happen in the next 12–18 months?
- Wedding?
- Baby?
- Move?
- Big vacation?
- Starting a business?
- Going back to school?
Even writing them down lets you work backward.
If you know a big event is coming, tax and cash-flow planning isn’t a luxury, it’s risk management.
Schedule a “Money Hour” With Yourself
(and Partner, if applicable)
Sometime before December 31, block off one hour to:
- Look over your accounts
- Review debts
- Sketch 2026 expectations
- Decide your “January 1 Rule”
- Note questions you don’t know how to answer
You don’t need all the answers in that hour.
You just need a clear picture.
Bring in a Partner So You’re Not Doing This Alone
You don’t get points for struggling alone.
At Solstice Partners, we help Canadians:
- Turn December confusion into a clear plan
- Estimate tax outcomes and choose RRSP/TFSA decisions
- Organize side-hustle and rental numbers
- Build simple, sustainable personal money systems
December is the last chance to influence 2025.
If you’d like help turning these 12 moves into a custom plan, we’d be happy to sit on your side of the table. Get in touch with us now.
