Despite massive economic, technological, and cultural changes over the past few decades, many Gen Xers and baby boomers still hold onto beliefs that no longer work.
In a 2023 poll released by the Pew Research Center, the majority of older Americans, 64 percent, maintain that job stability is more important than taking the risk of starting a business, despite findings that show entrepreneurs earn 27 percent more over 10 years.
These outdated views on money, unfortunately, are blocking your success, financial growth, or even a balanced life. It’s human to hold on to the familiar. Still, the truth is that some awareness is silently yet dramatically holding us back.
Here are 13 outdated beliefs that are quietly ruining the lives of Gen X and Boomers.
”You Must Have a 9-to-5 Until You Retire”
The old-fashioned idea that a 9-to-5 workday is the only way to become successful is not just outdated; it’s deemed as tiresome. According to the U.S. Bureau of Labor Statistics, in July 2023, there were 11.9 million independent contractors whose sole job or primary role was being an independent contractor, representing 7.4 percent of total U.S. employment.
A significant portion of the workforce was engaged in independent work. During the pandemic, a notable shift in sentiment has occurred regarding flexible working hours and hybrid work arrangements.
Adhering to a 9-to-5 mentality may close Gen Xers or Boomers off from rewarding new business opportunities in remote work, consulting, or entrepreneurship. It’s time to redefine “traditional” when the nature of work itself has evolved from it.
”Debt Should be Avoided at All Costs”
Overspending can be dangerous, but low-interest debt can help you build wealth quicker by investing with borrowed money, according to financial experts at The Motley Fool.
2023 research by Experian found that the typical American has $236,443 worth of mortgage debt, indicating the prevalence of leveraging debt as a financial tool.
For example, leveraging a 4% mortgage loan to invest in property that appreciates at 8% year-over-year may be a savvy choice. This ultra-conservative stance can serve to hinder opportunities to gain equity, produce passive income, and establish financial freedom.
“Higher Education Guarantees Success”
For generations, a college degree has been the ticket to financial security. However, as of 2023, more than 43 million Americans have student loan debt, according to the Federal Reserve. Meanwhile, companies such as Google and Apple have eliminated degree requirements for numerous positions in favor of experience and skills.
It’s also possible that too many Gen Xers and Boomers make wildly expensive educational decisions for children or grandchildren based solely on blind faith in academia, without ever considering possible alternatives such as trade schools or online certifications.
”Still Be Buying Our Home; Renting Is Throwing Money Away”
The view that renting is wasteful does not square with the realities of today’s economy. Real estate prices have skyrocketed, with the National Association of Realtors citing a median home price of $416,100 across the U.S. in the fall of 2023.
Renting can be an appealing alternative for individuals nearing retirement or those uncertain about relocating again. Adapting to a more flexible housing arrangement, Gen Xers and Boomers might not feel compelled to buy real estate that would stretch their financial bandwidth.
“Mental Health is something that needs to be talked about”
Meanwhile, mental health stigmas remain largely intact among older generations. But mental health is just as important as physical health, with organizations such as the National Alliance on Mental Illness (NAMI) discovering that 1 in 5 adults in the U.S. faced mental health challenges in 2022.
Neglecting mental health affects not just physical health and family ties but also job productivity. Changing this sort of thinking is essential for developing healthier coping mechanisms and seeking professional help when needed.
“Keep Your Cash Safe in a Savings Account”
Bank savings accounts may seem like a sanctuary for wealth. Still, their low returns can also be eroded by inflation. The U.S. inflation rate rose to 3.7% in 2023, the Bureau of Labor Statistics reported.
In the meantime, traditional savings accounts feature average rates of 0.23%, which accelerates the loss of purchasing power over time. Financial planners recommend that savers invest in a variety of assets, including stocks, ETFs, and mutual funds that outpace inflation and provide compound interest.
“Sweat Equity is The Most Meritocratic Trait of All”
Working hard is still a good ethic, but not an essential one in the digital age. Networking, ongoing training, and leveraging technology are equally important.
According to Harvard Business Review’s latest research, strategic leadership and meaningful relationships are fuelling career progression far more than the number of hours worked. Adhering to this antiquated notion can lead to burnout without the reward of advancement.
“Be Loyal to One Employer Until You Retire”
Gone are the days when you could rely on a pension plan and an employer’s loyalty. The average worker changes jobs every 4.4 years, according to the Bureau of Labor Statistics in 2023.
Remaining with one employer for too long can be a dead end, especially when job-hopping becomes necessary to earn more money or secure better benefits. Career Change: Reflecting on career goals and finding fresh options can lead to greater job satisfaction.
“You Can’t Teach An Old Dog New Tricks”
This perception is toxic to both personal and professional growth for Baby Boomers and Gen Xers. According to research from the Pew Research Center, Boomers aged 65 years and older are acquiring new skills, especially digital ones, to stay competitive in the workplace as they age, even if it means more involvement than they initially expected.
Education doesn’t end as soon as you’re no longer a kid; it just changes. Studying in fields such as AI tools or coding can exponentially increase personal or professional opportunities.
“Retirement Is the End of Productivity”
For many previous generations, retirement has traditionally meant leaving productivity behind altogether. However, 62% of retirees now pursue hobbies, educational interests, and even part-time jobs after claiming retirement benefits, according to a 2023 study by AARP.
Staying active after retirement has more than just health benefits; it helps in developing the perception of retirement as a phase of leisure.
“In Investing, Stick to the Status Quo”
According to data from Vanguard’s 2024 “How America Saves” report, we’re all stuck in investing yesteryear by relying too heavily on bonds or succumbing to extreme risk aversion as we age.
The report states that as of 2023, 45% of participants employed balanced strategies, comprising 42% in TDFs and 3% in other balanced options. Yet today’s array of investments includes various choices, such as indexed funds, which offer a less risky way to play the market.
“Technology is for the Young”
Boomers and Gen-Xers who have been left behind by technology become more and more professionally and socially marginalized. Smartphone, wearable, and even online gaming usage is increasing steadily among those 50 and older, according to the Consumer Technology Association.
In an August 2024 CTA study, 89% of adults aged 50 and above place importance on aging in place; yet, tech adoption by older adults is low, with just 3% of those over 50 owning connected medical alert devices. Everyone is entitled to their own approach when it comes to tech adoption, but some tools can be used to help manage health, finances, and day-to-day living.
“It’s Too Late to Achieve Your Dreams”
The notion that passions are something you play with only in your youth is flat-out wrong. A 2020 study by economists at MIT, Northwestern, the University of Pennsylvania, and the U.S. Census Bureau examined millions of American companies formed between 2007 and 2014.
The research found that the average age of successful founders was 42 years old. When we followed up, I was asked to share a few of my entrepreneurial adventures and explain how someone of middle age managed to “pull it off.”
Whether it’s starting your own business or venturing into a creative endeavor, “it’s never too ‘late’ to pursue personal passions that might channel the heart back into joy and fulfillment.”
Key Takeaway
Old ideas hinder potential growth, happiness, and security for many Gen-Xers and Boomers, whose outmoded beliefs are more than mere ideas. From shifting attitudes about work and money to remaining open-minded about technology and mental health, there are countless limiting beliefs begging to be shattered.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
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I’ve discovered seven practical strategies anyone can use to save on international money transfers. Whether you’re sending a hundred dollars to a family member or paying for a service in a foreign country, these tactics will help you hold onto more of your hard-earned cash.
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Do you have a kitchen hack we should know about?
