‘Learning how to invest effectively is an important lesson’

Are you a saver or a spender?

I certainly spend to live and enjoy my life but, overall, I would say I am definitely a saver. Each month I set aside an amount to save and invest.

Do you shop around for better value?

I usually find that better value can be found for a similar product or service. I’d draw the line on anything I felt was unethical, though; it’s worth spending more to keep sustainability, human rights and animal rights in mind. Increasingly, I think that more and more younger people are thinking this way.

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What has been your most extravagant purchase and how much did it cost?

Our house. I’m not saying how much it cost but it wasn’t much, relatively speaking. It’s not even extravagant. I don’t want to be making extravagant purchases, in general, as I just don’t feel that our wellbeing and sense of meaning in life can be sourced externally like that. I think that the notion of luxury is a bit of a con.

What purchase have you made that you consider the best value for money?

My road bike. I bought it back in May last year, during lockdown, second-hand for €300, and it has transformed my days, my health and my life overall. I now cycle as much as I can across the hills of Donegal. Some people spend a lot of time thinking about cars, but the cost of cars can damage your financial health and end any ambitions of achieving financial independence. A bike gives you miles of enjoyment a car could never provide.

How do you prefer to shop during the Covid-19 restrictions – online or local?

Local for sure, but we do a lot of online shopping, too.

Do you haggle over prices?

Sometimes, when buying second-hand on Done Deal, for example, and definitely when conducting business.

How has the Covid-19 crisis changed your spending habits?

Myself and my partner can’t really spend at the moment, like a lot of other people, so we’re lucky to be able to save instead. One area of expenditure that has gone up, however, is cycling gear and equipment.

Do you invest in shares?

I am a big believer in investing. Growing up, I think our generation was told stories about investments going wrong. But the truth is that investing is crucial for achieving financial independence. Learning how to invest effectively, and ethically, is one of the most important lessons we can learn while we’re still young. It’s amazing what we are not taught in school in terms of life skills, from forming and maintaining healthy relationships to planning personal finance.

Cash or card?

Card. I carry no cash. Ever. The other day at the recycling centre I was surprised they wouldn’t accept a card. I had to go home, open up an old shoebox and get out some cash to go back and pay the guy.

What was the last thing you bought and was it good value for money?

A burrito bowl – rice, beans, guacamole, peppers, jalapenos. Healthy, nutritious and totally plants. At €5.50 it’s a bargain. Our local Mexican joint, Burrito Loco, in Letterkenny, is a great spot.

Have you ever successfully saved up for a relatively big purchase?

Yes, a mortgage. A necessary big purchase.

Have you ever lost money?

I have twice lost a wallet. I’ve never lost any money through investing because I am extremely careful to research the assets involved and to understand the numbers. Mathematics is a really valuable skill in this regard. Life without a certain level of numerical knowledge would be a lot more challenging, and a real understanding of compound interest can transform over the long term one’s decision-making in terms of personal finance.

Are you a gambler and, if so, have you ever had a big win?

No, but if you mean risk taking rather than gambling, I will say, yes, I take risks, educated risks, all the time.

Is money important to you?

Yes, definitely. But not for the purpose of buying things. Not to be flash. If I could go back and visit my younger self, I would advise him to start investing sooner. Money is important because it gives you freedom. Money can buy you a way out of a job or career you hate. Money can open up doors to starting your own business. Ultimately, money can buy you time, which of course is our most important commodity.

How much money do you have on you now?

Zero. Always zero.

In conversation with Tony Clayton-Lea