LEST WE FORGET,

the only reason we invest in the first place is to have more money. While money isn't all that matters, it matters. Besides health and family, our financial assets may be our most valuable and prized possessions. Given how hard most of us work for our money, it makes sense to do what we can to have a bit more of it.

We can always opine about the economy or venture a guess on the next direction for the Dow. But through bull and bear markets alike, I keep coming back to fact that real wealth isn't built from a good stock tip but from making prudence and frugality part of the everyday routine. Considering the exceptionally uninspiring state of the U.S. stock market, I believe now is an especially smart time to take a few weeks to get the financial house in order.

The stock market is an endlessly fascinating, dynamic and downright addictive animal. Yet most people who obsess over stocks ignore the real problem: poor financial habits. And although it's super un-sexy when compared with day trading e-Minis or writing covered calls, the truth is it's the little things eliminating debt, reducing expenses and saving on which fortunes are built. I don't care how fast your quotes are: The market is always a crapshoot. However, developing good financial discipline, and sticking with it, is a guaranteed way to boost your bottom line.

If your goal is to have more money, then you must know that credit-card debt doesn't just slow the process, but suffocates it altogether. And while card companies get a bad rap as shylocks praying on an unsuspecting public with "predatory" practices, the truth is that credit cards, when paid off, are an amazing deal. Think about it: A company is giving you a 30-day float, a host of loyalty points or incentive miles, a detailed record of every penny you spend and the safety of not having to carry currency...all at no charge whatsoever. All they expect is that you pay for what you purchase in a timely matter. Is that too much to ask?

Problems mount, however, when credit-card debt isn't paid off. Considering the average balance is now over $8,000 for families with one card, for millions of Americans, simply reducing this high-interest consumer debt would make a world of difference to financial health. That's where it all starts. There's no sense in putting one penny in stocks when you're dragging around revolving debt on a Visa or MasterCard. Consolidate your bills on the card with the lowest rate, and then focus on eliminating it altogether. A useful motivational tool is SmartMoney's Debt Management Worksheet, which quickly calculates just how much interest is racked up by carrying a balance even on a low-rate card.

Forget rolling stocks or scalping ETFs. The easiest way to have more money is to spend less. And while necessities aren't expendable, many indulgences are, oftentimes with negligible impact on quality of life. Although I don't follow a strict budget, every few months I go over my bills and bank receipts to figure out exactly where my cash goes.

The remarkable thing about our material possessions is how many of them are actually worth absolutely nothing at all. I don't deny myself things I can afford, but I'm increasingly aware that most everything, from a book to clothing to a piece of furniture, is rendered practically worthless the moment it leaves the store. Look around the house. Chances are you've spent thousands of dollars on items that right now wouldn't fetch a fraction of that price.

And yet frugality need not hurt; in fact, it's actually hip. A decade ago, it was the "simple" lifestyle and fuel-efficient Dodge Neon cars that symbolized living beneath one's means. Now the trend is exemplified by selling knickknacks on eBay or shopping at Target.

The answer isn't to cut out shopping, but to become more conscious about it. So track your spending for a few weeks chances are you'll notice plenty of money being wasted on items that, truth be told, really aren't worth buying in the first place. And when I take a moment to prune my purchases, like canceling the premium channels I never watch or not renewing the magazine subscription that's rarely read, it's surprising how much a few bucks here and there will add up.

Of course, once you have money, the hardest thing is figuring out what to do with it. And in our technologically advanced age, you don't hear the term savings much anymore. People make investments. They have portfolios. Saving feels like something that went out with vaudeville, Jimmy Durante and the Model T Ford.

Yet given the state of most people's financial affairs, the first stop after accumulating some wealth shouldn't be a mutual fund or stock brokerage, but a bank. It might seem old-fashioned, but I believe that savings should form the foundation of everyone's finances, no matter if they've just started working or are already retired.

For those just starting out, an ideal goal to work toward is an "emergency fund" six to nine months of living expenses, in cash, in the bank. Once that's achieved, shoot for a year. You'll be surprised how much brighter the world is when you've got 12 months of food and mortgage payments sitting in a savings account or CD.

And while the prospect of making meager returns in a bank account doesn't send the heart racing, the truth is that savers can be savvy as well. For example, it's amazing to me how many people pass up the chance to make a cool 100% on their investment simply by tying up their savings for a slightly longer period of time.

According to Bankrate.com, the average money-market fund is currently yielding around 1.40%. Yet by buying a one-year CD, it's possible to double that return with no risk of loss. It seems insignificant, but when habitualized over time, a few percent will add up. Big companies spend countless hours figuring out ways to squeeze out an extra quarter point on their money. So should you.

Jonathan Hoenig is managing member at Capitalistpig Hedge Fund LLC.