Farnoosh Torabi is easily one of my favorite podcasters. She is funny and knowledgeable. Her podcast, So Money, airs three times a week. With a high frequency show, she brings on a lot of authors to discuss their new books.
One of her recent guests was David Bach. Bach is a well know financial writer. During his interview, he said that this story has been inside him for 12 years. He knew it had to be a young women and he knew the parable he wanted to tell to the world. He said it would be short and something people can read in an hour. He credited Paulo Coelho with telling him he had to write this book. I added The Latte Factor to my library request list. If Coelho told him to write it, it must be good.
The story follows Zoey Daniels for one week as she decides whether or not she would like to take a new job. She meets a barista who provides her the keys to financial freedom. One of which is getting rid of her daily “double shot latte and muffin” habit. She enacts the advice of the barista and her boss. She ends up staying at her job and being happy. As Bach promised, you can read this story in about an hour.
Sallie Krawcheck had a great reaction to the story. She said “Just buy the f***** latte.”
The Latte Factor has some good points about compound interest and making cuts to things however, I have some of the same issues Sallie does. Why is it a female lead in the story? Bach is a man. Men have plenty of habits that are daily and costly. The latte is a female associated drink. Its an older man giving her the advice. It comes across as mansplaining. Beyond that, the bigger issue with women and earning is that they are paid less than men across the board. We pay more for the same items (the pink tax) as men. There is no paid leave for many women. All of these items have an impact on our financial situation that has nothing to do with the choices we make on how to spend our money.
David Bach wrote a cute story about what can happen if you decide to make some changes to your life. But that’s exactly what it is, a fictional story. Bach wanted to write a parable to teach the millennials when in reality he wrote a condescending short story. The charts he puts in the back are interesting.
Who has read The Latte Factor ? What were your thoughts about the book?
If you want to read Sallie Krawcheck’s response to The Latte Factor you can read it here.