1 Know yourself. You can’t begin a journey if you don’t know where you’re going. Set your financial goals, ie a holiday, a deposit on a first home, clearing your mortgage, putting your kids through school, a comfortable retirement… Make sure you know what you want. As well as defining your goals you should also be aware of your own psychology. How much risk can you stand? If it keeps you awake at night, you probably shouldn’t be doing it, so find out before the sleepless nights begin.

2 Money doesn’t buy happiness. Despite what the marketing men would have you believe. Get out into nature, walk by the sea, watch the sunset… Spend some quality time with family and other loved ones. Borrow a decent book from the library. Listen to some great music. The best things in life really are free.

3 Get your own home. Paying a mortgage is like transferring money from one pocket to another, and you get utility from it in the process. However humble nothing beats the sense of security and pride that comes from knowing you own the roof above your head.

4 Avoid personal debt. Remember Mr Micawber’s maxim: income more than outgoings, result happiness; outgoings more than income, result misery. Credit cards can be convenient – but whatever you do settle them each month – the interest rates are exorbitant. If you really must borrow for essentials (eg a car), increase your mortgage instead. Secured borrowing is much cheaper.

5 Minimize your tax bill. Paying taxes is an unavoidable evil, but make sure you don’t pay a cent more than you need. A paid-for appointment with a tax advisor might be one of the best investments you’ll make. One simple, but often neglected, tactic is for a couple to transfer all assets into the name of the spouse in the lower tax bracket.

6 The best time to start a pension is yesterday. You really can’t start too soon. Employer’s schemes often have the benefit that they contribute as well as you. Otherwise acquaint yourself with the tax breaks on offer for pension money. If you join a formal scheme make sure the management etc fees don’t outweigh the tax breaks.

7 Acquire income-producing assets. Instead of spending your hard-earned money on today’s pleasures, be a little patient and build up some income-producing assets. You can then spend the income on your pleasures, enjoying them more in the knowledge that the income wll not only keep coming, but increase.

8 Diversify. Split your assets between cash, real estate and stocks. Make sure you have rainy day funds of 3-6 months salary in cash, but beyond this you ought to consider other investments. If you can’t afford / don’t want to own individual properties Real Estate Investment Trusts (REITs) are a good alternative. Index trackers are a good way to start in stocks. Avoid managed funds as evidence consistently shows they don’t beat the market.

9 If you don’t understand it, don’t do it. The financial industry is littered with pushy sales people chasing their next commission by getting you to part with your money. Make sure you know exactly what you’re letting yourself in for, and read all the small print. If it seems too good to be true, it probably is.

10 Let yourself off the leash once in a while. Frugality will boost your net worth, but it’s a lot easier to pursue if you allow yourself to spend a little extra on something you really enjoy once in a while. Perhaps as a reward for hitting a financial milestone.