Both are correct, but they are used in different contexts. 1) Me falta: Can be used in two different constructions. a) It is used when you are referring to part of a process or thing. Me falta dinero = I have some money, but not the whole amount I need. Me falta leer dos capítulos más = I have read most of the book, I just have to read two more chapters to finish. Me falta limpiar la cocina = I have cleaned most of the house, I just have to clean the kitchen and I will be ready. b) It can also be used to express the need of something, same meaning as "me hace falta". 2) Me hace falta: It is used to speak about something you need. Me hace falta leer más = I do not read enough, I should read more. Me hace falta entender este concepto = If I do not understand this concept I will not be able to advance. As you can see in the last two examples, there is process being performed, the person is just expressing the need of "reading" in the first case and "understanding" in the second. Also, after "faltar" or "hacer falta" there are no verbs, these are gerunds (id est, verbs that are used as nouns).

I think both are corrent, here are two examples: Me falta poco para acabar mi curso. I'm about to end my course Me hace falta comprar una nueva lavadora I need to buy a new washer machine

Yo uso mucho más Me hace falta + verbo. Me hace falta hacer la limpieza Me hace falta estar con ella.

Thanks, looking at your comment and what Mario said I would still probably translate "me falta" as "I need" or "I still need" in most cases, but I get your point. It sounds like a very subtle difference between the two.

Diría que "me falta" es como "I'm short on" or "I lack" (y algunos otros significados) y "me hace falta" es como "I need".