The start of a new year is when a lot of people decide, “This is the year I finally get my finances under control.”
That’s a great goal.! But it’s also the time of year when people make rushed financial decisions, follow bad advice, or hire the wrong financial advisor and end up worse off than before.
If you want to start the new year with your finances actually under control, the key is not doing more, it’s doing the right things in the right order.
Here’s how to approach your money this year without blowing it up.
What Does It Mean to Get Your Finances Under Control?
Before you change anything, it helps to define what “under control” actually means.
Getting your finances under control does not mean:
- Picking the perfect investments
- Timing the market
- Cutting out every enjoyable expense
Getting your finances under control does mean:
- Knowing where your money is going
- Feeling confident in your decisions
- Having a plan instead of guessing
Clarity matters more than complexity.
Why the New Year Is the Worst Time to Follow Random Financial Advice
January is peak season for bad financial advice.
This is when:
- Social media is full of “money hacks”
- Influencers promise quick wins
- Financial products get aggressively marketed
Most of this advice is designed to sell something, not to help you.
If you’re serious about improving your finances this year, you need to be intentional about who you listen to.
Should You Work With a Financial Advisor This Year?
For many people, getting their finances under control means getting help.
That can be a good thing, IF you choose the right kind of advisor.
A bad financial advisor can absolutely ruin your life. A good one can help you avoid expensive mistakes and make better decisions faster.
The difference comes down to how they are paid.
What Type of Financial Advisor Should You Avoid?
Not all financial advisors are on your side.
You should generally avoid:
- Commission-only advisors
- Dual-registered advisors (advisor + broker)
- Advisors who sell insurance or investment products
These advisors are often paid more when you buy something, which creates conflicts of interest.
What Is a Fee-Only Financial Advisor?
A fee-only financial advisor is paid directly by the client—not by commissions or product sales.
This often includes:
- Advice-only planners
- Flat-fee advisors
- Hourly financial advisors
If your goal is to get your finances under control, this structure tends to align incentives far better.
How to vet a Financial Advisor Using the IAPD Website
The Investment Adviser Public Disclosure (IAPD) website is the most important tool you can use when researching a financial advisor.
It’s run by the Securities and Exchange Commission (SEC) and shows:
- How an advisor is registered
- How they are compensated
- Any regulatory issues
How to use the IAPD:
- Go to the IAPD website
- Click the “Individual” tab
- Enter your ZIP code
- Review the advisors listed
What you’re looking for:
- Fee-only advisor → perfect
- Dual-registered advisor → yikes
- Commission-only broker → woof
If an advisor wears “two hats,” conflicts are built in.
Best Places to Find a Fee-Only or Advice-Only Financial Advisor
Directories can be useful starting points if you know how to use them properly.
Fee-Only and Advice-Only Advisor Directories
Mandatory Cross-Check
Advisors change business models, and directories don’t always update quickly.
Before working with anyone:
- Verify them on the IAPD
- Review their Form ADV
- Confirm they are not earning commissions or charging AUM fees if you don’t want that
Verification is non-negotiable.
Why “Free” Financial Advice Usually Isn’t Free
If someone offers free financial advice, always ask:
How are they getting paid?
Very often, the answer involves:
- Commissions
- Insurance sales
- Investment management fees
That doesn’t automatically make the advice wrong, but it does mean you should be cautious.
How Many Financial Advisors Should You Interview?
If you decide to work with a financial advisor this year:
- Interview at least three
- Ask how they are paid
- Ask whether they sell any products
A good advisor won’t rush you or pressure you into making decisions.
How I Help People Get Their Finances Under Control
For full disclosure, I may be slightly biased—I’m a practicing fee-only, advice-only, flat-fee, hourly financial advisor.
I don’t earn more money because you have more assets. Or sell financial products. I charge a flat or hourly fee based on the time and complexity required to help you make better decisions.
If starting the new year with a clear financial plan sounds appealing, feel free to reach out.
Final Thoughts on Starting the New Year Financially Strong
Getting your finances under control doesn’t require perfection. It requires clarity, patience, and avoiding unnecessary conflicts of interest.
If you do that, this year can be very different from the last.
Here’s to a calmer, more confident financial year ahead.
– Phillip
Disclaimer
Disclaimer: I do not, have not, and never will claim to be a professional writer. Please excuse any spelling and/or grammatical errors. All information provided is for educational purposes only and is not intended to be investment advice. The information being provided via hyperlinks may be from third-party websites and is strictly as a courtesy/convenience. When you link to any of the web sites provided here, you are leaving this website. I make no representation as to the completeness or accuracy of information provided on these websites. I am not a CPA or attorney and anything included in this article may not be interpreted as tax or legal advice.