At the start of the new year, many of us make big, ambitious resolutions to finally get our finances in shape. We vow to slash spending, pay off debt, or double retirement contributions. However, the unwieldy timeline and scope of these New Year's resolutions often set us up for failure. Come February, most are abandoned as life gets in the way. There is a better approach than the once-a-year push for perfection.

Rather than an annual overhaul, consider taking a mini financial reset each month. The beginning or end of the month provides a natural milestone to review finances and set realistic goals for the next 30 days, and this keeps your finances on track all year long.

Take stock of your numbers

First, I recommend tracking what’s coming in and going out each month. Having an understanding of your post-tax income (what’s coming in) against your monthly expenses (what’s going out) is the first step in building up your savings. It will also show you how much you’re spending on essentials such as housing costs, groceries, or debt repayments versus nice-to-haves, like eating out or entertainment and where you may be able to cut back in certain categories.

• Log into all accounts to update balances—checking, savings, investments, debts.

• Note your net worth by subtracting debts from assets. See how it changed over the past month.

• Review month's income, spending, and savings rate. Were you on target? If not, where did you overspend?

Reflect on the past month

Your goal with reflection is to nail down what goals you’re trying to reach, when you want to reach them and how much you want to save. Being as specific as possible with each can help set you up for financial success. For example, if you’re saving for an upcoming trip, set aside a predetermined amount of money each month to reach your goal.

• What went well financially? Celebrate wins like paying off debt or hitting a savings milestone.

• What didn't go so well? Look at areas where you overspent or dipped into savings.

• Journal about your emotions and attitudes related to money. Focusing only on numeric goals may work short-term, but if they lack a deeper meaning, you're more likely to run out of steam.

Course-correct for next month

Time to put your reflection to use.

• Adjust monthly budget if needed based on learnings. Tweak categories that were off.

• Plan ahead for big expenses next month like vacations or car insurance bill. Adjust other spending accordingly.

• Set one or two specific, achievable money goals for month, something like "pay off half my credit card balance."

Automate your finances

Consider setting up an automatic deposit to help save money without even having to think about it. Schedule an automatic transfer from your checking to savings account, including long-term savings or investments like retirement, right after each paycheck hits so you don’t get tempted to spend it. Depending on your financial situation, gradually try to increase this amount each month or quarter.

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