As we start the final quarter of the year, we are also gearing up for a busy season. Between Thanksgiving, Halloween, winter holidays, and year-end financial planning, it is a critical time to revisit your budget and make strategic decisions to set you up for success in the new year.
The last few months of the year can often mean increased spending. Without a clear plan, these expenses can quickly snowball.
And now is the time to think about how to maximize RRSP contributions and find eligible tax deductions before the calendar year ends.
1️⃣: Review Your Year-to-Date Budget
You did have a budget, right? Awesome! But, if you didn’t, it’s not too late!
Start by reviewing your finances from January to September. Look at your bank account and credit card bills and study where you’ve been spending your money. Grab your latest paystub and compare your actual income to your original budget. Are you on track? Have you overspent in certain categories? This will help you identify areas for adjustment and prepare for seasonal spending.
2️⃣: Forecast Seasonal Expenses
We’re likely to spend more money on seasonal expenses as winter approaches. You may need to account for things like:
- Thanksgiving and holiday meals
- Gift-giving and charitable donations
- Winter clothing and heating costs
- Travel (especially during the holidays)
- Seasonal items like winter tires for your car, or snow removal costs
Make a list of your anticipated expenses and put realistic estimates on their costs. Unfortunately, there’s been a rise in overall consumer costs over the last year, so be sure to do some research.
3️⃣: Prioritize and Trim Where Needed
Not all expenses are essential. Categorize your spending into:
- Must-haves (e.g., heating bills, winter tires)
- Nice-to-haves (e.g., holiday parties, décor)
- Can-wait (e.g., non-urgent upgrades)
This helps you stay focused and avoid impulse spending — especially during major sales events like Boxing Day.
4️⃣: Maximize Revenue and Tax Efficiency
Now is also a great time find ways to reduce your tax burden. Consider:
- RRSP contributions: While the deadline is in early 2026, contributing now helps reduce your taxable income.
- Charitable donations: Eligible donations made before December 31 can be claimed on your 2025 tax return.
- Small business investments: Purchases made before year-end may qualify for capital cost allowance (CCA) deductions.
5️⃣: Prepare for Year-End
Start organizing receipts, invoices, and financial statements now. For individuals, this includes tracking medical expenses, childcare costs, and home office deductions. For businesses, ensure your bookkeeping is up to date and consider scheduling a meeting with your accountant to discuss tax strategies
6️⃣: Plan Ahead for 2026
Take some time to reflect on your financial habits and set goals for the new year. What worked well? What could be improved? Begin drafting your 2026 budget with these insights in mind. We do often face higher costs in winter months, so planning ahead for heating, insurance renewals, and post-holiday recovery is key. Plus who doesn’t like to plan for a mid-winter getaway?!
Budgeting for the last quarter of the year is about more than just managing expenses — it’s about finishing strong and preparing for a financially healthy new year. With a clear plan, smart spending, and strategic foresight, you can navigate the end of 2025 with confidence and peace of mind.