When I look back on 2025, I’m struck by how much has changed in just twelve months. My portfolio grew from $1.1M to $1.3M—a solid 16.7% increase—but the numbers tell only part of the story. This year taught me that disciplined saving, strategic diversification, and consistent execution matter far more than trying to time the market.
Let me break down exactly what happened.
The Numbers at a Glance
Beginning Net Worth: $1,109,621.59 CAD (January 2025)
Ending Net Worth: $1,294,500.97 CAD (December 31, 2025)
Year-over-Year Growth: $184,879.38 (16.7%)
Annual Savings Rate: 44.39%
Where the Money Came From
There are three main drivers of portfolio growth: earnings, savings discipline, and investment returns. In 2025, all three worked in my favor.
- Consistent Income: My various income sources kept the engine running smoothly throughout the year.
- Disciplined Savings: This is the secret sauce. I saved aggressively when opportunities presented themselves, yet remained flexible enough to adjust when life happened.
- Investment Growth: My diversified portfolio benefited from market recovery and strategic positioning in tax-advantaged accounts.
My Portfolio Breakdown
I’m a firm believer in diversification across account types, geographic regions, and asset classes. Here’s how I’m positioned –
Registered Accounts (Tax-Advantaged):
RRSP: $258,655 → $321,876
TFSA: $129,039 → $217,812
Although the numbers look impressive, this is not all growth. My TFSA has some room due to withdrawals in 2024, so this includes a significant deposit.
Non-Registered Investments:
Balance: $146,308
Focus: Canadian dividend stocks and low-cost ETFs
Crypto is about 4% of my portfolio. I view it as portfolio insurance — although it didn’t perform well overall in 2025.
Real Estate:
Primary residence: $583,000
Mortgage equity: Built through appreciation and principal paydown
The Mortgage Paydown Strategy
One of my proudest achievements from 2024 was reducing my mortgage principal while rates fell. I made multiple lump-sum payments and switched to accelerated weekly payments when it made sense.
Mortgage balance at end of 2025: $124,824
This isn’t sexy, but it works. Every dollar paid toward principal is a guaranteed return equal to your mortgage rate.
Savings Highlights:
The overall annual rate of 44.39% is the sum of all these months divided by annual income. Some months I saved 70%+. Others, I invested in experiences.
This flexibility is key. A rigid savings rule breaks when life happens. My approach: maximize savings when income is high and opportunities are low, deploy strategically when opportunities arise.
Looking Forward to 2026
With $1.29M in net worth and a proven 44% savings rate, I’m well-positioned for my 2030 early retirement goal. However, my investable assets are $685,997 so my focus for 2026 is to grow that.
My 2026 targets:
- Maintain at least 44%+ savings rate
- Maintain my weekly accelerated mortgage payments but no more lump sum pre-payments
- Continue dollar-cost averaging and invest available cash into VEQT
- Continue to invest in health, wellness & travel experiences
The Pragmatic Takeaway
2025 wasn’t a spectacular market year, but it was a spectacular personal finance year. Here’s why:
- I controlled what I could control (savings rate, asset allocation, tax optimization)
- I didn’t panic about what I couldn’t control (market volatility, interest rates)
- I stayed flexible and adapted as opportunities emerged
- I used time and compound interest as my allies, not enemies
If you’re building wealth, you don’t need to beat the market. You need to earn consistently, save aggressively, optimize taxes, diversify wisely, and stay the course.
2025 proved that formula works. Here’s to 2026.
