Spending Habits: Switching to an electric car is saving me money

Finn van der Aar is a marine scientist, author and speaker.

Finn van der Aar is a marine scientist, author, and speaker.

What is your relationship with money?

I think it’s a pretty healthy one. I wasn’t taught a whole lot about money growing up, but over the years (and partially due to being self employed), I’ve taken the time to learn about taxes, savings and investing, to build a better financial future for myself.

Are you a spender or a saver?

Absolutely both! I will think long and hard about a big purchase (like a laptop or a car) and then will try to get the best possible version of it within my means. I read a great personal finance book a few years back and one of the phrases that really stuck with me was “buy second hand, pay cash.”

Do you find it hard to splurge?

A little bit, I incurred a small amount of debt for my business Milish, which in the end just didn’t work out, so I can often over analyze any potential splurge as I’m conscious that I’m just so close to paying that off now.

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

“Ciall cheannaigh... bought sense” - from my Kerry granny. She has given me some of the best nuggets of financial advice. When I came home early from my J1 (due to illness) this was her phrase, to sum up, the stupidity of getting a €2000 J1 loan from the bank. As she pointed out, debt is never free.

Do you follow a budget and what is your process?

Yes and no. It’s difficult when you’re self employed to have a straight down the line budget, as my income can be so variable month to month, depending on what kind of projects I’m working on. 

I do have a spreadsheet for both my personal life and business, from this I know what I need to have all my bases covered. I also have a direct debit to my emergency fund, which I keep in a credit union account so it’s more difficult for me to dip into.

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

When I bought my first ever car. I was pretty proud to have haggled the price and got a discount for a trade in. It was the most I’d ever spent on an item, I researched it really well and even the manager in the bank thought it was hilarious how pleased I was with myself when I went in to collect the bank draft.

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

I only started to understand how I was paying to my state pension when I was 26. It was at 30 that I came to grips with the fact that even the contributory pension is not a viable income so I’m now looking at starting a private pension fund.

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

In a way, I wouldn’t consider any of the bad money decisions I’ve made mistakes. They’ve helped me to understand things like risk, debt and compound interest so that I’ve a better grasp of what I’m doing later when I have kids or own property and there’s truly something on the line.