We’re huge fans of the new book that’s stirring all kinds of controversy in the personal finance industry this month.It’s called “Pound Foolish,” and in it, author Helaine Olen essentially tears down some of the biggest names –– and common pieces of financial wisdom –– in business one by one.
She especially goes after big names like Suze Orman, Dave Ramsey, and David Bach –– all experts who have built empires based on the fact that since they have mastered the financial system, then you, the cash-strapped reader, should be able to as well.
A point Olen makes clear early on in the book is that experts are only putting a bandage on larger economical issues that have made it especially trying for consumers to scrape by.
We’ve shared her refreshing take on individual investing here and are chatting with Olen soon. In the meantime, here are some of the highlights of a sit-down chat she had recently with CBS Moneywatch.
On why she loathes personal finance Gurus:
“These people are telling us, hey, just buy a few umbrellas and sand bags and no matter what wave comes your way, you’re going to be fine. And, by the way, they’re the ones selling us the sandbags and umbrellas and they don’t often disclose that.”
On why tips aren’t enough to save consumer finances:
“What they’re doing is they’re denying the pressures that are on us. Our salaries have stagnated and fallen for well over a decade now. And what they’re doing is saying, you’re going to be fine if you’re living within your means while they ignore the fact that our heath care costs have gone up at rates beyond inflation, housing has gone up at rates beyond inflation, education has gone up at rates beyond inflation.”
On why finance gurus have so much pull with consumers:
“We’re nuts when it comes to money and all we want is someone to tell us what to do. Most of us don’t want to engage with our money even though we need it, and so the idea is, hey, I’ll just follow this person and they’ll tell me what to do. We also, in this country, have a huge attraction to this sort of tough thinking about money –– where anybody can make it and it’s your fault if you don’t.”
Check out the full video here.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.