Why Everything You Know About Saving Money is Wrong

Buying Small "Luxury Items" Isn't the Reason You Live Paycheck to Paycheck

Personal Finance is a Pipe Dream

Q: Let’s jump right in: What is the basic argument you make in Pound Foolish?

"The basic argument is that personal finance is something of a misnomer.

For 30 years we’ve been dealing with stagnating income -- income inequality, plunging net worth. The role of personal finance has been to tell us that we can save and invest our way out of it: We will be financially virtuous, we will cut back on luxuries, we will save our money, we will invest properly and we will be OK. As it turns out, life does not work that way.

Healthcare costs, education, housing are going up well beyond inflation. We've been responsible for more and more of our safety net. Costs are going up and up and at the same time jobs are insecure -- that's a formula for disaster, not for financial empowerment."