7 boomer beliefs about money that are no longer really relevant today

Times change, and so do financial norms. What worked for Baby Boomers, those born between 1946 and 1964, doesn’t necessarily hold water today.

I’m here to break down seven money-related beliefs that this generation grew up with that aren’t really applicable in the modern era.

My aim isn’t to discredit Boomer wisdom, but rather to help you navigate the evolving financial landscape more effectively.

These outdated notions can sometimes hinder progress, stifle innovation, and even limit your potential for financial growth.

Let’s dive into these seven Boomer beliefs about money that need a bit of an update.

It’s all about setting you up for success in a world where technology is changing the way we do business and manage our finances.

1) Buying a home is the best investment

Once upon a time, buying a home was considered the ultimate financial achievement.

For Baby Boomers, the belief was that owning property was a surefire way to build wealth.

But times have changed. Today’s economic climate, coupled with evolving societal norms, has transformed this once-solid investment strategy into something less certain.

Skyrocketing housing prices, fluctuating markets and increasing student loan debt have all contributed to a shift in perspective.

While owning a home can still be a good investment for some, it’s not the one-size-fits-all solution it was once thought to be.

The modern entrepreneur understands the value of diversifying investments and considering other forms of wealth building.

The key is to stay adaptable and open to new financial strategies as the business landscape continues to evolve.

2) You should always aim to retire at 65

Boomers have long held the idea that 65 is the magic number for retirement.

When I was growing up, I remember my parents always talking about how they couldn’t wait to hit that age and finally relax.

Fast forward to today, and I find myself questioning this belief.

With advancements in healthcare leading to increased lifespans and the dynamic nature of today’s work environment, retiring at 65 is no longer a given.

In my own entrepreneurial journey, I’ve come to see retirement as a fluid concept.

The focus has shifted from retiring ‘at an age’ to retiring ‘at a stage’- when I’ve accomplished certain goals or achieved a certain level of financial security.

Instead of strictly adhering to the Boomer belief of retiring at 65, consider what retirement means to you in this digital age.

It could mean transitioning into a passion project, consulting, or even starting another business.

The point is, you have the freedom to redefine what retirement means for you.

3) Cash is king

Baby Boomers grew up in an era where cash was the primary mode of transaction.

However, the rise of digital technology has dramatically changed how we handle money.

In 2019, only 26% of all transactions in the U.S. were made with cash, according to a study conducted by the Federal Reserve.

This trend is expected to continue as more and more businesses move towards cashless operations.

Credit cards, digital wallets, and online banking have become the norm. They offer convenience, security, and often rewards that cash transactions can’t compete with.

While it’s always useful to have some cash on hand, clinging onto this Boomer belief might limit your financial flexibility.

Embrace the digital transformation and stay updated with financial technologies to keep your money management efficient and secure.

4) College education is non-negotiable

Many Boomers firmly believed in the power of a college degree as the key to a successful career.

Higher education was seen as a surefire way to secure a good job and financial stability.

But the tides have turned. We’re living in an age where self-taught coding skills can land you a six-figure job and entrepreneurs are dropping out of college to start successful businesses.

Moreover, with the soaring cost of tuition fees and the proliferation of online learning platforms, the value of a traditional college education is being questioned more than ever before.

This isn’t to say that a college degree doesn’t hold value, but rather to highlight that it’s not the only pathway to success.

It’s important to evaluate your own goals, skills, and passions when deciding on your educational journey.

5) Job security lies in sticking with one company

The Boomer generation often equated job security with loyalty to a single company. Climbing the corporate ladder within one organization was seen as the most stable career path.

But that belief was challenged when I found myself laid off from a job I had devoted years to.

It was a stark wake-up call that job security isn’t guaranteed, even if you’re committed to a single company.

Today’s job market values adaptability and diverse skillsets. Many successful professionals have careers that span multiple industries and roles.

This flexibility can lead to greater opportunities, job satisfaction, and even financial stability.

In today’s fast-paced, digitally driven world, it’s crucial to be flexible, continuously learn, and be open to new opportunities.

The old adage of “don’t put all your eggs in one basket” holds true when it comes to your career path too.

6) Avoiding debt is always the best policy

Baby Boomers have long held the belief that all debt is bad and should be avoided at all costs.

It’s a financial mantra that was passed down from a generation that experienced economic turmoil and instability.

But in today’s economic climate, not all debt is created equal. Certain types of debt can actually work for you.

A mortgage, for instance, can help you build equity over time, while student loans can be an investment in your future earning potential.

Furthermore, strategic use of business loans or credit can help entrepreneurs grow their businesses at a faster pace, allowing for expansion and scalability.

While reckless borrowing can lead to financial ruin, smart and strategic borrowing can be a powerful tool in wealth-building.

The key is to understand the difference and make informed decisions about when and how to borrow.

7) The stock market is too risky for the average person

Many Boomers grew up thinking the stock market was a dangerous game, best left to the experts or those with money to lose.

This belief, while borne out of past financial crises, can limit your financial growth potential.

In reality, investing in the market is one of the most effective ways to grow your wealth over time.

With the rise of user-friendly investment apps and resources, it’s more accessible than ever to start investing, regardless of your financial background or knowledge.

It’s essential to understand that while all investments come with risk, they also offer potential rewards.

By educating yourself and taking a thoughtful and measured approach to investing, you can make the stock market work for you.

Reconsidering the blueprint

The way we handle our finances, like most aspects of life, is deeply influenced by the beliefs we hold.

These beliefs often stem from the experiences and teachings of previous generations.

However, as we’ve explored in this article, not all Boomer beliefs about money continue to hold relevance in today’s dynamic economic landscape.

From the concept of home ownership as the ultimate investment, to the idea that college education is non-negotiable, or even the belief in retiring at a specific age – these constructs may no longer serve us in the way they once did.

In Albert Einstein’s wise words, “The measure of intelligence is the ability to change.”

As technology reshapes our world and the way we do business, it’s crucial to reassess these inherited beliefs and adapt our financial strategies accordingly.

This isn’t about disregarding Boomer wisdom.

It’s about evolving our understanding of money and financial success to fit our own individual circumstances and the world we live in today.

As we navigate this journey of financial discovery and growth, it’s worth remembering that the ultimate goal should be to build a life that you find fulfilling and financially secure, on your own terms.