How much would you spend to help your children in life — and where would you draw the line? Gemma Godfrey, the money guru who appeared with Arnold Schwarzenegger on the New Celebrity Apprentice, says she would pay for school and university fees, first cars, first home deposits and weddings for both her children — provided she had the funds to do so. She has set aside about £200 a month for her four-year-old son since he was born, and plans to do the same for her baby daughter.
Godfrey grew up in north London and studied at North London Collegiate School, followed by Leeds University, where she graduated with a first-class degree in quantum physics. She did a paid summer internship at Goldman Sachs then worked for the investment bank. She founded her own online investment business, Moola, in 2015.
This year, Godfrey appeared as a boardroom judge on the New Celebrity Apprentice, a relaunch of the American television show previously hosted by Donald Trump. In February, the US president criticised both the show and his replacement; Schwarzenegger suggested he and Trump swap jobs.
From next month, Godfrey will co-present a new ITV show called Eat Shop Save, aimed at helping Britons improve their finances and diets.
Godfrey, 33, lives in north London with her husband, Wayne, a producer who has worked on films including Martin Scorsese’s Silence. They have a son, Dexter, who is 4, and a daughter Sloane, 5 months.
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How much money do you have in your wallet?
£20 of emergency cash and a debit card.
What credit cards do you use?
I don’t have any credit cards — I am a firm believer in spending money I have and not being surprised by bills. I was in the investment industry during the financial crisis and I saw, second-hand, how debt can get out of control. I am also naturally cautious. Even when I had a credit card in the past, I never used it.
Are you a saver or a spender?
I believe in saving first and spending out of what I have left over, as opposed to saving only what I manage to not spend. In this, I follow Warren Buffett’s mantra. We appeared on the same episode of the New Celebrity Apprentice [he was a guest judge] but he was doing it in Omaha, so I didn’t meet him.
I used to even save chocolate as a child, sometimes for such a long time it would actually go off and turn white.
How much did you earn last year?
A lot less than I used to when I worked in finance. I earned six figures for my last job, before I started my own business. I was head of investment strategy for a wealth manager, Brooks Macdonald.
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Have you ever been really hard up?
No, and I work hard to avoid that. To be able to sleep well at night I need to know I have money to look after my family. I always have at least three months of expenses saved, as a safety net.
Do you own a property?
We have a four-bedroom house in north London.
What was your first job?
To get good grades — I got straights As at A-level and a first-class degree. Then in 2003, I did a paid summer internship at Goldman Sachs and I loved it.
What’s been your most lucrative work?
My earning power increased with every job within the finance industry, so the last job I did, in wealth management, was my most lucrative.
What was it like to work with Arnold Schwarzenegger?
He was great. You don’t get to where he got to without being smart. He has succeeded in four very different arenas: body building, acting, politics and, as not many people know, property.
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Are you better off than your parents?
No, because property was far more affordable in previous generations. My mum, Beverley, raised our family, and my dad, Barry, was in the wealth management industry.
Do you invest in shares?
Yes, through my stocks and shares Isa. I avoid putting all my eggs in one basket and invest in funds that track the stock market more broadly. That way, I am getting exposure to hundreds of shares.
What’s better for retirement — property or pension?
You need to have both. Being exposed to property through your pension [by investing in funds exposed to commercial property], so you get tax relief as well, is the best of both worlds.
When did you first feel wealthy?
When I realised I could look after myself.
What’s been your best investment?
My husband. He has given me two gorgeous kids and our partnership has enabled each of us to achieve our goals.
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And the worst?
Not investing enough in myself, in terms of making sure I recharge my batteries. I have felt burnt out in the past and I won’t let that happen again.
“I believe in the importance of cutting back on unnecessary spending. Small leaks sink big ships
What’s the most extravagant thing you have ever bought?
I am not extravagant but my husband treats me (and I rein him in). For example, I have a very nice watch, which he bought for me.
What are you worried about?
Property prices are going up and one in four mortgages this year will be financed by the Bank of Mum and Dad. When my children want to buy a property, how are they going to do it?
What’s your money weakness?
I use Uber. Having the technology in my pocket means I have taken more taxis.
I believe in the importance of cutting back on small, unnecessary spending. Small leaks sink big ships. If you save £9 a day by making lunch instead of eating out, over 240 working days a year and 13 years you would save £28,000. That will pay for your child to go to university [assuming fees are £9,000 a year].
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What aspect of the tax system would you change?
I would reform Isas to make them clearer. For example, giving different names to cash Isas and stocks and shares Isas, to differentiate between them.
What’s your financial priority?
To cover my family’s needs and give my children the tools they need to be self-sufficient. I plan to teach them financial literacy and have been investing a couple of hundred pounds a month for Dexter since he was born — and I’d better get a move on to do the same for Sloane.
Do you support any charities?
I am on the investment committee for a community care charity, to help protect and grow the money the community has worked tirelessly to raise, to empower and support families in need.
What would you do if you won the lottery?
I would fully use my Isa allowances, top up my pension and put enough aside in investment funds for my kids’ school and university fees, first car, first home deposit and weddings.
What’s the most important lesson you have learnt about money?
We work hard for it and it should work hard for us. The guaranteed way for your money to lose value is to leave it in cash.