Spending Habits: I was in debt throughout my twenties and now I want a nest egg

Dr Laura Lenihan says that factoring in cost-per-wear is a great way of figuring out whether it's worth investing in a piece of clothing or not

Dr Laura Lenihan says the best money advice she was given was 'you can't spend it when you're dead.'

What is your relationship with money? 

My relationship with money has never been great (as my dad will attest to!). But thankfully I have gotten far more sensible over the past number of years, especially now that I am setting up my own clinic. I managed to pay for nearly half of the renovations myself from income generated in the business, which is something I’m super proud of.

Are you a spender or a saver? 

I’m definitely a spender, even in these pandemic times. I wish I could be more sensible when it comes to saving, but I’ve never been particularly good until recently.

Do you find it hard to splurge? 

No, I find it far too easy!

What is the best money-related advice you were ever given? 

You can’t spend it when you’re dead! But also that you don’t want to have to be making it later in life. For me, it's about trying to find that balance.

Do you follow a budget and what is your process? 

I’ve tried to follow a budget on a number of occasions, even trying the zero budgeting approach but it just wasn’t for me. I would struggle with ad hoc expenses every month and want to purchase something over what I had budgeted for so I gave up every time. As a household, we have a monthly groceries budget that goes into a separate account that we try to stick to. After that, we don't really budget much.

What's the most expensive thing you have ever bought? 

I like to invest in pieces that I know I will get lots of use out of. Cost-per-wear is a great way of looking at items you wish to add to your wardrobe. While fast fashion is becoming ever more prevalent over the last number of years I have tried to pick investment pieces a couple of times a year. I do save my birthday and Christmas presents from everyone and purchase myself something nice once a year!

What is the most important thing you have ever bought? 

I think our recent house purchase has to be up there. We were searching for ages to find something in Salthill where I grew up and after the last lockdown the market there just exploded. We eventually went to see a house that we had been ignoring for quite some time, but it turned out it was perfect for us. 

It had a commercial component that I could transform into my new clinic, so killed two birds with one stone. It meant that I wouldn’t have to rent premises to be able to open my own clinic, and was in fact cheaper (and bigger) than most of the houses we had been bidding on all summer. From a financial point of view, it made excellent sense for us. Fast forward six months later and we are set up in a lovely home and I have opened my own three-room clinic with minimal support.

What age did you start your pension and did you know it was important at the time? 

I actually dont have a pension at the minute. I finished up working for the HSE late last year and haven't set up a private one yet, so that is top of my list and I have a meeting about it organised for later in May. I find these kinds of things extremely difficult and confusing, to be honest. When I was on the GP scheme we did look at setting up private pensions but the amount was so high, I couldn’t bring myself to be down that kind of income every month. That can change now I have my own business so it's time to put it in place for sure.

What is the biggest mistake you have ever made financially and what is the lesson you take from it? 

I think years of overspending for me and being in debt throughout my twenties is a big eye-opener. Now I'm determined to pay everything off, set up a proper pension and get a nice nest egg going for myself and my family.

• Dr Laura Lenihan is the founder of the Dr Laura Clinic, a specialised GP and skin health clinic. She offers online and in-person consultations.