Financial planning in four steps: goals, numbers, review, plan

Updated November 2026

A financial plan doesn't need to be a 40-page binder. It is four steps: decide what you want, collect your numbers, see where you stand, and write down what you'll do next. You can do the first three yourself in an afternoon.

1. Set your goals

Write down what you want your money to do, with a date and a dollar figure for each goal. "Retire comfortably" is a wish; "retire at 63 with about $4,500 a month after tax in today's dollars" is a goal you can plan for.

Put the goals in order. You will rarely be able to fund them all at once.

2. Gather your numbers

Collect the paperwork in one place – a folder or a password-protected file.

3. Work out where you stand

Two simple calculations tell you most of what you need:

Then check a few warning lights: high-interest debt, no emergency savings (three to six months of essential expenses is a common target), no disability or life insurance when people depend on you, and unused TFSA or RRSP room. A retirement calculator will show whether your current saving rate is on track for your long-term goal.

4. Make the plan

For each goal, write down how much you'll save, where (which account), in what (which investment) and by when. Then automate it with pre-authorized transfers on payday. A typical order of priorities:

  1. Pay off high-interest debt and build a small emergency fund.
  2. Take any employer pension or RRSP match – it is free money.
  3. Choose between the TFSA, RRSP and FHSA for each goal (see TFSA, FHSA and RESP).
  4. Protect what you've built: insurance, a will and powers of attorney.

Review the plan once a year and after any big change – a new job, a child, a separation, an inheritance. If you want help, see how to find and check a financial advisor.

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