Gwyneth Paltrow was named by People as the most beautiful woman in the world for 2013.

The actress and mother of two graced the magazine's cover this week for their annual tally of the most beautiful women. It is an honor that she has taken over from good friend Beyoncé, who was crowned last year.  

Paltrow gave credit to her workout routine for keeping her youthful, and said she does the Tracy Anderson Method five days a week.

"It makes me look younger and feel strong," she said. "When I first started, I thought, 'I'll never be good at this. This is a nightmare!' But now it's like brushing my teeth, I just do it."

The 40-year-old said she doubts her kids, Moses and Apple, would be impressed by the recognition because they only see her as mom. 

"Around the house, I'm in jeans and a T-shirt. I don't really wear makeup. That's what they're used to," she said, adding, "I feel so much happier now than I did 20 years ago."

The Academy Award winner also shared that her husband, Coldplay lead singerChris Martin, makes note of her casual attire while at home.

"He'll make a joke about it," she said. "If I've gotten fully dressed up, he'll be like, 'Oh, wow! You're Gwyneth Paltrow!' Because he's used to seeing me in like baggy shorts and frizzy hair."

The recognition from PEOPLE comes at a very busy time in the star's life. Her second cookbook, It's All Good, debuted at No. 1 on the New York Times bestseller list and her next film, Iron Man 3, will be in theaters on May 3.  Despite the hectic schedule of the last few weeks, she said her top priority has remained being a mom. Paltrow told the magazine that she wants her kids, especially 8-year old Apple, to have a positive self-image.

"When we're home sometimes, she'll put on mascara. And sometimes I'll let her wear something out to dinner - but just a little dab," she said of her daughter

Paltrow also said it was important for Martin to help instill in their children the values she holds dear. She added, "Also having a father who adores you the way that he adores her is very good for your body image. The more we can love her and let her be who she is, the more confident she'll feel."