6 Things to Know About Improving Your Finances in the New Year

As we head into the new year, financial advisor Tristan Hastie from Waterstone Private Wealth Management shared 6 key steps everyone can take to get their finances on track.

1) Create a Budget

"We can't begin to get a grasp on our finances if we don't understand how much we're making and where it's going," said Hastie. He emphasizes that many people don't have a good handle on their actual earnings and expenses, so creating a detailed budget is crucial.

As Hastie explains, "If you don't really feel like you have a good grasp on what it is that you're making and where the money's going, you shouldn't feel any type of guilt about that, because that's actually a really common problem."

2) Review and Optimize Expenses

Once you have a budget in place, Hastie recommends regularly reviewing it and looking for ways to cut back on unnecessary spending. "Let's look for ways that we can say, oh, you know what, we spent a couple $100 extra on eating out this month. Did we really get our bang for our buck out of that?"

3) Invest for the Future

After covering the basics, you can start investing for long-term goals like retirement. But Hastie cautions, "You should not be investing if you don't have the budget and the basics taken care of, you ought to build that emergency fund."

4) Explore Additional Income Streams

In addition to your primary job, Hastie suggests considering a side gig or finding other ways to generate supplemental income. "Maybe that is, but don't forget, we're investing, so maybe we can get some diversified income through dividends or through bonds."

5) Plan for Taxes

Many people overlook the impact of taxes, which can be one of the largest household expenses. As Hastie points out, "Taxes are typically a household's largest expense or one of them, which I think really surprises a lot of people."

6) Engage with a Financial Advisor

For comprehensive financial planning and guidance, Hastie recommends working with a qualified financial advisor. "This is what we do on a daily basis, and we can help you make informed decisions that really help guide you in the right direction on where you want to go with all your finances."

By tackling these 6 key areas, you can set yourself up for financial success in the new year and beyond. Take the first step today by reviewing your budget and identifying opportunities for improvement.