The end of the year is a time of reflection for many, and while some will look back on their experiences and achievements, money experts say it's just as important to take stock of your finances.

Staying on top of your spending may have seemed like an uphill battle this year as wages have often failed to keep up with the rising cost of living. In the United States, Bankrate's 2024 Wage Index for Inflation found that between January 2021 and June 2024, prices increased by 20%, but wages increased by only 17.4% over the same period.

As a result, nearly half of Americans say they are living paycheck to paycheck, according to a recent report Bank of America survey.

"The end of the year can be a great time to reflect on your finances, but it's important not to be too hard on yourself," Tamara Harel-Cohen, co-founder of the RiseUp app, told CNBC Make It. -financial well-being.

Harel-Cohen advised against any spending scrutiny because it is not possible to always reach your financial goals.

Meanwhile, Sarah Coles, head of personal finance at Hargreaves Lansdown, said there is always room for improvement when it comes to money management.

“It can feel that as long as you get to the end of the year more or less in one piece financially, you're probably fine. However, this approach leaves you vulnerable to neglecting key aspects of your finances,” said Coles.

CNBC Make It asked four financial experts for their best tips on reflection and money management as the end of the year approaches.

It's a "common phenomenon" in December for people to feel ashamed about how they've managed their money, Vicky Reynal, financial psychotherapist and author of "Money on Your Mind," told CNBC Make It.

"One thing I would say is have self-compassion," Reynal said. "There is almost a sense that everyone feels they should be better than they are."

This can stop us from thinking productively about how to change things, Reynal said. The truth is that managing finances is "not an innate skill," and is often not taught by schools or parents.

“So we pick it up as we go, and inevitably we make mistakes. But all we can do is, rather than wallow in guilt and shame, we can use that and reframe it in terms of: What can I do differently? What do I want to do differently next year financially?” Reynal added.

Coles of Hargreaves Lansdown suggested an audit of five key areas of money.

“We should specifically take into account the five foundations of sound finances: Are your short-term debts under control? Do you have the right things in place to protect your family - including life insurance and a will? Do you have enough emergency savings to cover three to six months worth of essential expenses? Are you on track with your pension savings? And are you investing to make more of your money where you can?" she said.

Understanding where you are financially in these five key areas can help you create the foundations of a new money budget and goals, Coles added.

Many money resolutions in the new year fail because they tend to be overly complicated, according to Reynal.

"People, sometimes, proudly come to me and say: 'I have this spreadsheet, it's 30 tabs. I will be recording all my expenses.' But this is not sustainable," said Reynal. "I always encourage people to keep it simple and find the right tools."

She suggested using budgeting apps and investment platforms that cut the work for you.

"This will simplify and allow a cycle in which you feel empowered. You're getting small victories, and that kind of perpetuates a virtual circle in which you're starting to build confidence that: 'Look, I managed to do it this month, so maybe I'll manage to do it next month,'" she added.

Harel-Cohen agreed, saying that even a "five minute check-in" with yourself in the morning about how you will spend money during the day will help you make better decisions without feeling overwhelmed.

"Remember, improving your financial well-being is a marathon, not a sprint," added Harel-Cohen.

The second reason many money resolutions fail is because they are too ambitious, according to Reynal.

"There's a lot to be said for small wins in terms of building confidence, building a sense of agency, and building momentum," she said, adding that setting "small, actionable goals," it is the route to success.

Harel-Cohen advised automating monthly payments into your savings account to achieve long-term goals such as vacations or retirement.

She said: "After you stop this, sit back and forget about it."

It's good to treat yourself on occasion too, according to Ylva Baeckström, senior lecturer in finance at King's Business School.

Spending money shouldn't always trigger anxiety, she said. “What do you really spend on things you don't need? And how did you feel about spending that money? Did it make you anxious or stressed or did it make you feel good?” Baeckström said.

"If it made you feel anxious you need to change your habit. However, if it made you feel good, it might be worth continuing to allow yourself this particular luxury. Allow yourself some treats that make you feel good and cut out spending that makes you feel anxious," she added.