Financial Lessons From Diwali
Practical ways to reset money habits and finish 2025 strong!
Diwali marks renewal—cleaning the home, lighting lamps, and starting fresh. Use that same spirit to tidy your finances. Here’s a one-page guide with clear, actionable steps for Canadian households and business owners.
1. Clear the clutter, clarify priorities
- Three buckets: Essentials (needs), Growth (investments), Joy (giving/experiences).
- One-page plan: Top 3 goals for the next 12 months, target dollar amounts, and dates.
2. Sweep out high-interest debt
- List > rank > attack: Order balances by interest rate, automate extra payments to the highest.
- Consolidate carefully: Consider a lower-rate LOC only if you also close or freeze the old credit line.
- Emergency buffer: Aim for 1–3 months of expenses (keep in HISA or short T-bills).
3. Light the way for Savings
- TFSA/FHSA: Top up by Dec 31 (FHSA contributions made in 2025 are deductible for 2025).
- RRSP: Plan 2025 income so you create the right RRSP room; contributions in the first 60 days of 2026 can count for 2025.
- RESP/RDSP: Contribute by Dec 31 to capture CESG/CLB and RDSP Grant/Bond.
4. Invest with Intention (Gold, Crypto & the Core)
- Keep the core boring: Diversified stock/bond mix matched to your risk and timeline.
- Gold & crypto: Treat as satellites (typically 0–5% each, if used); rebalance on a schedule and track adjusted cost base for tax.
- Loss harvesting: If markets dipped, consider tax-loss selling (mind T+1 settlement before year-end).
5. Protect what matters
- Insurance gaps check: Life, disability, and critical-illness—right amounts, right beneficiaries.
- Wills & POAs: Confirm they reflect your wishes; update beneficiary designations on RRSP/TFSA/insurance.
6. Give with Strategy (Daan)
- Donate appreciated securities before Dec 31 for enhanced tax efficiency versus cash.
- Consider a Donor-Advised Fund to bunch donations and simplify receipts.
7. Stay Vigilant
Be skeptical of “CRA” calls or urgent texts; enable 2FA on banking/investing apps and verify payee details before transfers.
8. Small-business corner (for owners)
- Year-end cleanup: Decide salary vs. dividend, consider bonuses by Dec 31 for a 2025 deduction, place CCA assets in use before year-end.
- Cash flow: Renew LOCs, confirm covenant headroom, and prep lender packages for Q1.
- Franchise/expansion: Map total project cost, add a contingency, and line up funding milestones in advance.
As the lights of Diwali fade, let the festival’s spirit of renewal guide your financial habits forward. Whether it’s clearing old debt, reigniting your savings, or aligning investments with purpose, small, consistent actions now can shape a brighter financial path for 2026. Use this season to reset—not just your home and calendar—but also your money mindset. Like lighting each diya, every thoughtful financial step brings more clarity, stability, and peace to your future.
The information provided is for educational/entertainment purposes only. Actual information may vary, please consult our office for further details. Got a question? Feel free to reach us at helpdesk@assentt.com.
