Cashed Up: Baby Boomer wealth tactic that no longer works in 2025
That approach worked, and worked well, for a generation.
But for younger Aussies trying to follow the same steps today, it's like turning up to the Tour de France with a BMX bike.
The rules have changed, but most people are still playing the old game.
So we wanted to cover what's broken, and what actually works instead.
News.com.au's Cashed Up series is dedicated to helping young Australians kickstart their journey to financial freedom. The playbook for building wealth has changed and we are here to show you how to navigate it.
The old formula is out of reach and out of date
Boomers rode a once-in-a-century wave of economic tailwinds - affordable housing, strong real wage growth, generous tax savings, and a compulsory super system that matured at just the right time.
A home in Sydney's Inner West might have cost $100,000 in the '90s. Today it's closer to $2 million, but incomes haven't increased 20x to match.
When you add in stagnant wage growth, rising living costs, eye-watering childcare fees, it's no wonder younger generations feel like they need to push harder just to keep up.
The most common money traps younger people fall into today include:
• Buying your home too early: Scraping together a deposit for a tiny property in the suburbs can lock you into bad debt and kill your investing potential,
• Saving without investing: Inflation and tax is killing your bank balance. Earning 4 per cent while costs increase by 6 per cent isn't saving, it's going backwards,
• Blind faith in super: Most people under 40 won't see that money for decades, and leaving your entire financial strategy to a system you can't control isn't a strategy - it's a gamble.
The new money game plan
The old rule was 'buy as soon as you can', the new one is 'build your options first'.
That means setting yourself up to take advantage of opportunities, not locking yourself into a giant mortgage just because it feels like the responsible thing to do.
1. Invest before you own
Property can still be a powerful tool to grow your money - but owning the roof over your head isn't the only way to use it.
More and more young Australians are rentvesting; renting where you want to live, and buying where it makes sense financially.
You can use smart debt to invest into growth focused assets, not emotional purchases.
2. Make your money work harder
If your savings are sitting in a high interest account, this just means you're slightly less broke than the person with it all in cash.
But if you're serious about getting ahead, investing is non-negotiable.
Shares, ETFs, and even crypto (carefully) can give you the kind of compounding growth that savings never will.
Micro investing platforms mean you don't need thousands to get started, just consistency and a bit of time.
3. Use the tax rules you your advantage
You don't need to be a finance nerd to benefit from smart tax moves.
Salary sacrificing to your super fund, using strategies like negative gearing and debt recycling, and even investing through tax structures like bonds and trusts - can all accelerate your asset building when used intentionally.
The new rich don't just earn more, they keep more.
4. Grow your income
There's a limit to how much you can save, but there's no cap on what you can earn. Upskilling, changing jobs or industries, negotiating a pay rise, or launching a side hustle can fast track your money momentum more than giving up your daily coffee ever will.
Rewriting the rules doesn't mean rejecting them all
You don't need to throw out the baby with the bathwater.
The principles behind the Boomer game plan - spend less than you earn, invest, and use time to your advantage - still hold up today.
But the way you use those principles has to change.
You don't need to own a home at 30 to be financially secure.
You don't need to know how to pick stocks.
And you definitely don't need to follow a blueprint written for a different economy.
The wrap
Waiting for things to 'get easier' or 'go back to normal' is like hoping VideoEzy will make a comeback - it's just not going to happen.
But the good news is that there's a better path forward, one that's more flexible, more dynamic, and actually built for how young Aussies live and work today.
You just need the confidence to stop following your parents and start crafting your own playbook.
Ben Nash is a finance expert commentator, podcaster, financial adviser and founder of Pivot Wealth. Ben's new book, Virgin Millionaire; the step-by-step guide to your first million and beyond is out now on Amazon | Audiobook.
If you want some help with your money and investing, you can book a call with Pivot Wealth here.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance professional.
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