Karren Brady: I prefer to be my own pension Are you cautious with money or liberal with it? I'm cautious. Early in my career I made a decision to spend everything I earned up to the age of 25, but after that to save and invest more than I spent. I decided that was a grown-up way of dealing with money, because it meant I would have a brief period of spending on whatever I wanted, but then I would be sensible. Has having money made you happier? Yes, having money can make you happier because it gives you more choices and allows you to do the things you want to do. But I know a lot of people who have money and who are also miserable, so it doesn't create happiness for you. But if you have a good life and also have money behind you, you can treat your family and not worry how you will put food on the table or pay the mortgage. How do you separate responsibility for financial decisions with your husband? Who takes a stronger role? I do it all. Some years ago a window cleaner was touting for business down our road and knocked at our door when I was out. Paul later told me the quote had seemed a bit expensive - £500. I couldn't believe anyone would charge so much so I asked him to tell me more and it turns out the guy said "five" and Paul, assuming no one would clean windows for £5, had thought he meant £500. He hasn't a clue about money. What have you learnt about money by making a mistake? When I was 20 I bought a property in London and lost money on it. I had a choice between a one-bedroom flat in Regent's Park or a larger two-bedroom flat in Canary Wharf for roughly the same amount. I chose Canary Wharf, but it was the wrong decision. I bought it for roughly £150,000 in 1989 and sold it four years later for about £140,000. When you add in costs of sale, I lost more than just the difference, but more importantly I learnt property is all about location. In Regent's Park today flats are worth 10 times as much as in Canary Wharf. What's the secret to making money? Knowing the risks and understanding and evaluating the downsides so you can calculate whether the risk is worth taking. You need knowledge of the companies you are investing in or the deals you're doing and a willingness to take it over a long period, rather than looking for a quick win. What has been your best buy? Last year I bought a one-bedroom flat in Knightsbridge. I do a lot of work with West Ham and when I'm filming The Apprentice, my base has to be in London. I snapped up a little flat that needed to be refurbished and spent around £25,000 installing a Kutchenhaus kitchen, even though it's only a tiny space. I'm sure it's added value to the flat. How do you prefer to pay for things - cash, card or cheque? By credit card. I have an Amex and a NatWest black card. I pay each month so I don't end up in debt and I've never missed a payment. How easily do you tip? Very easily - I'm particularly good at tipping taxi drivers and hairdressers, but I won't tip in a restaurant if service is included in the bill. What's been your greatest extravagance? For years I leased my car or had a company car, but now I have just bought a second-hand Bentley Continental. It is the first car I have bought for myself in 20 years and it is four years old, so it only cost me around £60,000. I still think that is extravagant, though, and I had to give myself a talking to before I felt happy to go ahead. Have you suffered at all of the recession? No, thankfully nothing I'm doing is taking a hit. I don't tend to worry in any case - my mantra is that if you worry too much about your next job, you are unlikely to get it, but if you focus on the job you're doing, then another one comes along. Being on The Apprentice has definitely raised my profile, but I don't exploit it by going on chat shows or doing lots of magazine interviews. I do it because I believe in the show - I think it has credibility. Yes, for moving my money between accounts, but I think online banking is a myth because you don't actually bank anything. I don't pay online, I just use direct debits, because it's easier. I don't worry much about deposit accounts either - I just use savings bonds. Each year when they run out they send me a list of what's available for reinvestment, and I choose the best one. What's been your favourite holiday? Last year the family went to Mauritius to a five-star hotel. The weather was wonderful and the food was great. Expensive holidays can be a bit of a let-down, but this one wasn't. What about pensions? I don't have one - I'm neutral about them. I prefer to be my own pension. I know I could run a Sipp, but I think life's too short and it would be another thing to worry about. Karren Brady was talking to us for Kutchenhaus: kutchenhaus.co.uk