How to Do a Monthly Money Review—In Under an Hour

Keeping track of your finances doesn’t need to be a daunting task. With just one hour a month, you can get a clear snapshot of your financial health, make adjustments, and stay on track toward your goals. A monthly money review is a simple but powerful habit that can lead to better budgeting, smarter spending, and long-term financial success.

This guide will walk you through a step-by-step process for conducting a quick, effective finance check-in. Whether you’re just starting to take control of your money or are already a budgeting pro, these tips will help you maximize your financial potential.

Why Do a Monthly Money Review?

Before we jump into the steps, it’s worth understanding why a monthly money review matters. Here’s what this practice can do for you:

• Increase Awareness: Get a clear picture of where your money is going and where it may be slipping away unnoticed.
• Track Progress: Stay on top of goals like paying off debt, saving for a vacation, or building an emergency fund.
• Avoid Surprises: Catch potential issues like overdraft fees, billing errors, or overspending before they snowball.
• Maintain Control: Proactively managing your money reduces stress and empowers you to make informed financial decisions.

Now, here’s how to get it done in under an hour.

Step 1. Gather Your Tools (5 Minutes)

To begin, you’ll need the right tools and data at your fingertips. The good news? You probably already have most of these:

• Bank and Credit Statements: Download electronic statements or log in to your banking and credit accounts online.
• Budgeting Tool: Use an app like Mint, YNAB (You Need a Budget), or even a simple spreadsheet.
• Financial Goals List: Keep your savings or debt repayment goals handy to assess progress.
• Calculator or Budgeting App: Make quick calculations if adjustments are necessary.

Having everything ready before you start streamlines your review and saves time.

Step 2. Review Your Income (5 Minutes)

Start with the money coming in. Your total income should align with what you planned for the month. If it doesn’t, it’s time to adjust accordingly.

• What to Check:
  • List your sources of income, such as your paycheck, side hustle earnings, or investment returns.
  • Verify that payments arrived as expected.

If you notice a shortfall, investigate right away. For instance, an employer error or delayed client payment might be the culprit.

Quick Tip: If you have irregular income, like freelance work, use a three-month average to estimate your expected earnings for budgeting purposes.

Step 3. Track Your Spending (15 Minutes)

Now it’s time to get into the nitty-gritty of your expenses. This step might sound tedious, but with tools like expense trackers or bank apps, it’s a breeze.

• What to Do:
  1. Review Categorized Expenses: Most apps and banks automatically categorize your spending (think groceries, dining, or transportation). Verify that these categories are accurate.
  2. Identify Patterns or Surprises: Look for consistent overspending or unexpected charges.
  3. Add It Up: Compare your total spending to your budget. Are you under, on target, or over?

Pro Tip: Focus on recurring expenses first. Are subscription services adding unnecessary costs? Cancel any trials or memberships you’re not actively using.

Estimated Time Saved: Using an app with built-in analytics can reduce this process from 15 to 5 minutes.

Step 4. Assess Your Financial Goals (15 Minutes)

Your financial goals are the heart of your plan. Whether you’re saving for retirement, an emergency fund, or a new gadget, reviewing your progress keeps you motivated and aligned.

• How to Assess Progress:
  • Review how much you’ve saved toward each goal.
  • Evaluate debt repayment progress, paying attention to interest charges.
  • Check if any goals need to be updated based on new circumstances (like a pay raise or unexpected expense).

Example: If your goal was to save $500 for holiday shopping and you managed to set aside $150 this month, you’ll need to save $175 over the next two months to stay on track.

Motivational Add-On: Celebrate wins, no matter how small. Progress, not perfection, is the goal.

Step 5. Identify Areas for Improvement (10 Minutes)

By this step, you should have a clear understanding of your financial situation. Now, take a moment to identify tweaks or improvements.

Questions to Ask:

1. Are there categories where I consistently overspend? (If so, where can I cut back to balance?)
2. Did I reach my saving or debt repayment targets? If not, can I adjust next month’s budget to catch up?
3. Were there any unexpected expenses? How can I reduce the impact if they occur again?

Example Adjustments:

• Overspending on entertainment? Create a cap for dining out next month.
• Paying high interest on credit card debt? Make larger payments to reduce the balance faster and save money over time.

Pro Tip: Don’t be too hard on yourself. The purpose of this review is to make improvements, not to feel guilty about past behavior.

Step 6. Create Next Month’s Budget (10 Minutes)

Using what you’ve learned, map out a budget for the upcoming month. This doesn’t need to be elaborate; simply outline income, spending, and saving goals.

• Steps to Build Your Budget:
  • Start with projected income.
  • Deduct fixed expenses like rent, utilities, and insurance premiums.
  • Allocate funds to variable costs (groceries, entertainment, etc.) based on trends.
  • Assign leftover money to savings goals or debt repayment.

Consider adding a “miscellaneous” category (5-10% of your budget) to cover unplanned but necessary items.

Time-Saving Strategy: If you already use a budget-tracking app, simply adjust your existing template based on your new priorities.

Step 7. Reflect and Set Intentions (5 Minutes)

Wrap up your review by thinking about what you’ve accomplished this month and what you’ll focus on moving forward.

Reflection Prompts:

• What did I do well this month?
• What would I like to improve next month?
• What one financial habit can I commit to?

For example, if tracking spending felt cumbersome, you might commit to using a budgeting app daily. Or if you saved extra money, consider what goal can benefit most from the surplus.

Taking a moment to reflect helps you see how far you’ve come and inspires confidence to keep going.

Consistency Is Key

The true power of a monthly money review comes from making it a consistent part of your routine. Over time, you’ll feel more in control and better equipped to make sound financial decisions. Plus, since the review only takes an hour or less, it’s easy to fit into your schedule.

Remember:

• Financial progress is a marathon, not a sprint.
• Small changes and consistent habits can lead to big results.
• You don’t have to wait for perfection to take control of your money.

Set a recurring date on your calendar, grab your favorite drink, and dedicate this time to your finances. By next month, you’ll be amazed at what you can accomplish.