Doing these things in 2024 can help you retire comfortably

The holidays are over for most people on Monday, so this week I want to inspire you to go beyond your New Year’s resolutions and get practical with your money. It’s time to really put in place the actions that will allow each of us to build a better life.

This is the time of the year when intentions meet reality, when the rubber hits the road (or it doesn’t). It’s time to take the financial actions you promised you would, establish some new habits, and prioritise what truly matters.

Getting on top of the basics as you head towards retirement can leave more room – and money – for the fun stuff.Credit: Getty

If you’re heading for or in the second half of your life in 2024, I want you to set out and start working on some achievable and incrementally rewarding financial goals, designed to prepare you for your prime time and retirement years. I want you to get comfortable with gradually building up your nest egg, your financial confidence and your sense of purpose this year.

It doesn’t matter what stage of life you’re at, these steps are always important – but the closer you are to your prime, where the kids are becoming more independent, and you are too, the more important they become. Allow me to propose a few – see which ones resonate for the year ahead.

Step up your budgeting

If you don’t have an up-to-date budget you are flying blind or sailing rudderless, both of which are crazy things to do. So, with the start of the year, it’s time to build your 2024 cost-of-living budget afresh, taking in inflation.

Use this time of renewal to really dive in and explore how you can make your spending more intentional and less haphazard. (I have a free template you can use here.)And if you already have one, give it a good revision to make sure it accurately reflects your spending patterns.

Then take a long hard look at where you can save some money to put towards your important future-state goals like paying off your mortgage, putting extra money into superannuation or building your investments.

Dive into your direct debits and recurring expenses

The beginning of the year is a good time to stop, pull out your credit card and bank statements, and have a look at all the subscriptions and recurring payments you’ve signed up for, and see which ones you’re still using, which ones you can aggregate more efficiently and which ones you think you can forgo for a while.

I did this last week and uncovered three we could slash, three we consolidated into better plans, and one that we had signed up for without realising. It’s quite surprising, if you’re a family with teen or adult children, how many subscriptions you can accumulate over time, potentially unmonitored, drawing funds from your account each month.

One of the unexpected benefits to doing a deep dive was that we were able to look for better ways to bundle our services. We found family plans and multi-policy efficiencies with Apple, Optus, Microsoft, and our home and car insurers, just by having a look into those pesky direct debits and understanding the plans on offer better.

Be proactive with your investments

Every single working adult in Australia has investments inside their superannuation fund. Many people have additional investments outside super too. Some of you invest actively, while others take a more passive stance.

In 2024, be proactive and understand your investments – inside and outside superannuation. Log into your superannuation and investment platforms, monitor the value of your investments regularly – and the fees you’re paying investment managers – and consider whether you are taking an appropriate level of risk to achieve your financial goals.

You might be focusing on the fun goals before the hard finances. But I think it’s much smarter to look after your financial foundations first.

If you aren’t doing so, set yourself some reminders to check them more frequently. Understand how compound investing works and make sure you have strategies in place that will allow you to enjoy the benefits of compounding over the coming years of your life. You’ll be grateful for this in years to come.

Learn how superannuation works

If you’re anywhere near the second half of your life, your superannuation is important. In fact, for most people in their 40s, 50s and 60s, learning about superannuation is as fundamental as learning about residential real estate in your 20s and 30s.

I urge you to take advantage of the enormous tax benefits superannuation offers. To do so effectively you need to learn how the system works, and start putting in place strategies to maximise your use of it.

That means learning how to channel money into super and making informed decisions about how to invest it. You can make concessional contributions of up to $27,500 annually into superannuation at a mere 15 per cent tax, and once inside your accumulation fund, you’ll pay just 15 per cent tax on investment returns. Once you’re in retirement phase, those earnings become tax-free for investments totalling under $1.9 million.

And finally, when you’ve done all these things, indulge yourself in the fun stuff. Set yourself some lifestyle goals that fit within your budget and give you things to look forward to.

Most of you will be used to focusing on the fun goals before the hard finances. But I think it’s much smarter to look after your financial foundations first.

Bec Wilson is the author of the bestselling book How to Have an Epic Retirement and host of the new podcast Prime Time with Bec Wilson. She writes a weekly newsletter at epicretirement.net.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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