David Essex: 'Our prefab felt like Buckingham Palace'

We lived in one cubicle and shared a washroom with the other residents. I
stayed there until I was about four years old and then the great news came
that the council had built us a prefabricated house. That was fantastic
because we had our own garden and it felt like Buckingham Palace in
comparison.

I picked up a strong work ethic from my parents because my dad used to come
home with bleeding shoulders where he had been loading heavy items at the
docks and mum went out to work as well. I would say the whole experience
made me a bit frugal, or perhaps penny wise and pound-foolish. It certainly
didn't motivate me to pursue riches – all I really wanted to do was be a
jazz drummer.

In what ways are you penny wise?

I can't stand seeing any lights left on – I'll turn them off immediately. And
I don't like to see any waste either. It's difficult for me to deal with
anything like that because I grew up with my parents being so careful and
not having very much.

And how are you pound-foolish?

Well, whenever one of my kids wants something I'll just give it to them. If
they need help buying a property, for example, or perhaps if they are out of
work they might need money. But I've never been extravagant because I don't
have an extravagant taste.

So what has been one of the most extravagant things you have bought?

I bought a hand-built Morgan car 18 months ago for around £30,000. I'm not
really that interested in cars, but I liked the look of this one so I
snapped it up. That's extravagant because it sits in the garage most of the
time and is rarely used.

Do you feel having money has made you happier?

Yes, I think so. Probably the right thing to say is no and that it's more
important to have your health than money, but I think if you've got money
for yourself and your family it's far better to have it and feel secure than
not to have it.

How did you separate responsibility for finance in your marriages?

My approach was that you are really in it together so what belongs to one
person also belongs to the other. I've always had separate bank accounts,
but that's only because it's been easier – you don't need two signatories
for cheques. And I would usually have a joint bank account as well. My
girlfriend and I are thinking about getting engaged, so it looks like I'll
soon have the chance to put it all into practice again.

What have you learnt about money the hard way?

I think I've trusted financial advisers and accountants too much. In the
Seventies, when I was paying about 98pc tax, one particular scheme proposed
to me was to put some money in Lichtenstein as a tax shelter. I just nodded
and did it, but I don't think I ever got it back so that was a mistake. And
I've only ever had one flutter on shares when my accountant said I should
invest in a particular company. I put £5,000 in and it did well at first –
the value soared and my accountant told me to keep an eye on them. I never
did and then one day I received a letter saying the company had gone
bankrupt, so I lost it all.

What has been your best buy?

I bought a Triumph Bonneville motorbike in 1976 that only cost me around £100,
but it is worth a lot more now because it's very old and unique. I'm very
fond of it even though I don't do too many miles because I'm only a
fair-weather rider. It's a great British bike – it leaks, makes noises and
bits fall off, so it really is everything a British bike should be.

And your worst buy?

Clothes, probably. I don't know if they do something special with mirrors to
make clothes look particularly good in a shop, but on many occasions I get
something home and wonder why I bought it. I have some clothes in my
wardrobe that still have their labels on. A year ago I bought a £200 tweed
jacket and it's never seen the light of day.

How do you prefer to pay – by cash, card or cheque?

Usually by card, but I'm a bit nostalgic for cash because then you get a
better sense of what you're actually paying. Paying by card simplifies
things for the accountants so that's why I do it. I've got a Visa
Barclaycard and a Coutts debit card.

How easily do you tip?

I always tip because I think waiters and waitresses are paid peanuts. But I
only give 10pc.

Do you own much property?

I'm living in a two-bedroom flat I bought three years ago in London when the
value was near the top of the property market. I may have lost out a bit
there, but then again I sold something else at around the same time so as
far as I'm concerned if you move sideways in the property market like that
what you lose you gain, so it cancels out. There was a time I owned three or
four houses, but I decided to downsize a bit and focus on just one.

How do you save and invest?

I have savings on deposit even though at the moment you only get a small
return. I have most of them invested on various 90-day rates and from time
to time I think about which banks are offering the best return, but not
fanatically. And I have a portfolio of investments in my pension fund that
seem to be ticking over.

I suffered a bit in the last stock market crash because just before it
happened I gave my instructions to go ahead and move out of cash and into
equities. Until a few years ago the portfolio was mainly held in cash, but I
was advised I could do better in equities. I should not have agreed.

Do you bank online?

No, I don't trust it – I would think someone is tapping in. It's not that I
have any general aversion to technology but online banking just seems to be
asking for trouble. You can have enough problems offline, so why increase
the risk? In the Seventies, I had a bank account in the United States and I
received a letter saying: "Thank you for your instructions to withdraw
$10,000 and close your account." The Bank of America was very good when
I said it wasn't me giving that instruction and it said some rogue member of
staff had been slowly closing and raiding dormant accounts. I hope they
caught up with him in the end.

What's been your favourite holiday?

I'm very fond of Cuba and going anywhere off the beaten track. I had a nice
wander around India when I finished playing in Mutiny in the
Eighties. I like active and interesting holidays – I'm not a sun worshipper
at all.

 The 'Once In A Lifetime' tour 2010 features David Essex, Leo Sayer, the
Osmonds and Les McKeown's Bay City Rollers. Call the ticket hot line 0844
847 1726 or visit www.tdpromo.com
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