Spending Habits: 'Student loans were so easy to get'

Entrepreneur Fiona Parfrey is the founder of Sundrift, which make ec- friendly changing robes and also We Are Riley, an eco-friendly period subscription box. She says that her priority is spending her money on things that make her feel happy

Fiona Parfrey says that she struggles with spending a lot of money on material things. 

What is your relationship with money?

I try not to put too much weight on money. My Dad always taught me that all that matters is our health and happiness, and money doesn’t result in either. One of my motivations to work hard is freedom, and of course, financial security would certainly help with that, but it’s not the be-all and end-all.

Are you a spender or a saver?

For me, it’s never been either-or. It depends on what life stage I’m at. Right now, I’m a saver, mainly to do with Covid. That said, when the country opens up I’m looking forward to spending on socialising and trips away.

Do you find it hard to splurge?

I find it hard to splurge on certain things. I definitely struggle with justifying spending a lot of money on material items. On the other hand, I’ll always find a way to justify things that I know will bring me long-term joy or memories, whether that’s an overpriced eye cream or a meal at a nice restaurant!

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

I read a Forbes article about four years ago that explained why we should spend our money on experiences, not things. It’s scientifically proven that happiness from possessions fades a lot quicker than experiences. Making sure your limited disposable income is well spent on what makes you happy; that really resonated with me.

Do you follow a budget and what is your process?

My partner and I started following a rough budget about a year or so ago as we started the long and daunting process of saving for a house. At the end of every month, we look through our bank statements and figure out how much we can put towards our savings. Although we try to put away as much as possible each month, we also want to have a balance whereby we can enjoy life without counting every single cent.

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

I don’t actually own anything very expensive, so I would say probably my most recent backpacking trip in 2019. I island-hopped around the Philippines, did a safari trip in Sri Lanka and another one in Kenya, and trekked to Everest Base Camp in Nepal. These memories really helped me get through being locked down during Covid, so it was money well spent.

What is the most important thing you have ever bought?

This is so boring, but probably my laptop. I bought it just before the backpacking trip and, while feeling inspired on the road, I began working on my first business. It sparked a journey down entrepreneurship and I haven’t looked back since.

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

I started it when I moved to Australia at 25 because it’s a compulsory system over there. I definitely didn’t realise the importance at the time and, being self-employed, find it difficult to be consistent at. It’s something I need to get better at, for sure.

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

Taking unnecessary debt when it wasn’t needed! It was super easy to get overdrafts/loans when I was a student, and it felt as if you were missing out if you didn’t avail of them. Now I would only consider taking debt on if it was absolutely essential.

Fiona Parfrey is the founder of Sundrift and We Are Riley.