Ever notice how our parents and grandparents have some pretty wild ideas about money? Growing up, I heard all sorts of financial “wisdom” that just doesn’t hold up anymore. Times have changed, and so have the rules about saving, spending, and investing.
I’ve done some digging, and let me tell you, a lot of those old money myths are totally busted now. So, let’s take a fun look at 15 money beliefs that Boomers swear by, but are actually way off the mark in today’s world.
Credit cards are evil
Credit cards aren’t bad if you use them wisely. They can help build your credit score and earn rewards. Just pay off the full balance each month. Treat them like cash, not free money.
Renting is throwing money away
Renting can actually be smart in some cases. It gives you flexibility and fewer maintenance costs. Sometimes, renting is cheaper than buying, especially in expensive cities. It all depends on your situation and local housing market.
You must pay off your mortgage as fast as possible
Rushing to pay off a low-interest mortgage isn’t always the best move. That money might do better in investments or savings. It’s okay to take your time with mortgage payments if you have other financial goals.
Cash is king
While it’s good to have some cash, keeping too much can hurt you. Money in the bank doesn’t grow much with low interest rates. Investing some of your savings can help it grow faster over time.
Investing is like gambling
Smart investing isn’t the same as gambling at all. It’s about making informed choices for long-term growth. Diversifying your investments helps manage risk. With research and patience, investing can be a great way to build wealth.
Social Security will cover retirement
Social Security alone probably won’t be enough for a comfy retirement. It’s meant to be just part of your retirement income. Start saving in a 401(k) or IRA (US) or RRSP (Canada) as early as you can. Every little bit helps for your future.
You need a big down payment to buy a house
These days, many lenders offer low down payment options. Some loans only require 3% down or even less. There are also programs to help first-time buyers. Don’t let a small savings account stop you from looking into homeownership.
You should avoid all debt
Not all debt is bad. Some loans, like for education or a house, can be good investments. The key is to borrow wisely and for things that grow in value. Just make sure you can afford the payments.
You need a traditional job for financial security
These days, there are many ways to make money outside of 9-to-5 jobs. Freelancing, online businesses, and side hustles can provide good income. Some people even make more money this way than with traditional jobs.
You need a lot of money to start investing
You can start investing with just a little money these days. Many apps let you invest spare change or small amounts. Some mutual funds have low minimums too. The important thing is to start early, even if it’s small.
Gold is the safest investment
While gold can be part of a diverse portfolio, it’s not always the safest bet. Its value can be quite unpredictable. A mix of stocks, bonds, and other investments is usually safer. Don’t put all your eggs in one gold basket.
You should keep your salary a secret
Talking about salaries can actually help you negotiate better pay. It’s good to know what others in your field earn. Just be tactful about how and when you discuss it. Knowledge is power when it comes to fair pay.
Cutting small expenses is the key to saving
While small savings help, big expenses matter more. Look at housing, transportation, and healthcare costs. Making smart choices on these big items can save you way more than skipping coffee. Focus on the big picture.
You need a financial advisor to invest
With today’s technology, many people can manage their own investments. There are lots of online tools and resources to help you learn. Of course, an advisor can be helpful for complex situations. But don’t think you can’t start without one.
A penny saved is a penny earned
This old saying isn’t quite true anymore. Thanks to inflation, money loses value over time if it just sits around. It’s smart to save, but also important to make your money grow through wise investing.
17 Boomer Life Hacks Millennials And Gen Z Should Adopt
