Small steps to improve your finances

Big, sweeping New Year's resolutions rarely work. The minute you fall off the bandwagon, you abandon attempts to climb back on, mostly because you're too busy hating yourself.

So forget about the "I'm going to lose 20 pounds and track every penny that I spend" fervor. Instead just do what does work -- actionable small steps.

Here's a list of ways you can improve your finances in 2012, usually in just a few minutes at a time, and without any self-loathing.

1. Set up at least one automatic investment besides your 401(k) account. You can open up a regular taxable mutual fund account with a company that offers low-cost index funds, or start a Roth IRA.

Even if you start with just $50 a month, you'll begin to accumulate an extra savings account you'll be happy to have.

2. Put your credit cards in order. Make a list of any cards that you currently have a balance on, ranked in order of interest rates, highest to lowest. You can use that list to pay extra to the top card on the list until the balance is zero, and then work your way down.

If you have rewards cards with zero balances, make a separate list of them, with their rewards specifics; for example 3 percent on groceries, 1 percent on everything else. Use this list to determine which card you use when.

3. Comparison shop for your insurance. Shop online for auto and home policies from companies such as Geico and Progressive. If you're currently working with an agent, ask for lower-cost policies.

You really may be able to save hundreds of dollars every year, but choose a company with a solid rating from A.M. Best and top reviews from consumers who have had to deal with claims. Check out the reports on ConsumerAffairs.com.

4. Get a solid mortgage quote and see if it's worth your while to refinance. Rates are still ridiculously low: Under 4 percent for a 30-year fixed-rate loan, according to Bankrate .com.

If you have home equity and expect to stay in your house for several years, you can either: switch down to a 15-year loan and burn your mortgage early; or stretch out another 30 years and use the extra money left over every month to pay down other debts, build an emergency fund or invest for the future. One place to check rates is mortgagemarvel.com.

5. Set up your 401(k) to automatically rebalance, at least once a year. That way, if your funds get out of whack, with some markets rising and others falling, you'll be somewhat protected. You'll lock in some gains and buy in at lower prices. And once you've set it, you can forget it.