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1. Always set aside 10 percent of income for the betterment of others as a charitable donation. If that seems too daunting, start out with a lower percentage, but work up to 10 percent in manageable steps. A prudently run charitable organization should have no more than 10 percent operational costs relative to donations.

2. As far as debt is concerned, the best advice was given by Ben Franklin, "Neither a borrower nor lender be." If the purchase of an expensive item requires new debt to pay for it, always deposit a minimum down-payment of at least 10 percent. If you don’t have the necessary money to make the down payment, don’t buy the item; find something more affordable.

3. Always set aside 10 percent of income for retirement. It is an immutable law of economics that we will need more money to live 20, 30, 40 or more years from now than we need today. Albert Einstein was once asked what the most powerful force in the universe is. His answer: compound interest. Use this force to your maximum advantage by investing for the future in things that will grow in value at a rate greater than inflation, keeping in mind that inflation is a thief.

4. Spend no more than 10 percent of income for discretionary personal recreation and enjoyment. It is important that we enrich our lives with enjoyable activities. Have fun, but let’s not wreck our finances by overspending on toys and trips.

5. It is imprudent to live "hand to mouth," because we have no control over all the circumstances in our lives. Set aside 10 percent of your income for a "rainy day" until enough has been saved to sustain yourself (or your family) for at least six months. Once enough has been saved, the excess money can be used toward investments or savings.

6. When calculating the amount for an affordable housing expense, spend no more than 10 percent of your income per bedroom. The payment on a two-bedroom home should be no more than 20 percent of your income. Example: If your income is $4,000 per month, the mortgage payment on a two-bedroom house should be no more than $800 per month. Working out the math, this would allow for the purchase of a $150,000 home with 10 percent down (Rule 2). If a more expensive home is desired, don’t break the 10 percent rule; increase the down payment to a level that allows the
10 percent rule to apply.

7. The maximum mortgage payment for the average family should be no more than 30 percent of income total (10 percent per bedroom). A corollary of this rule is that no more than 20 percent of your income should be spent for rent. That would allow you to save the other 10 percent toward a down payment on property of your own.

8. Never allow credit card expenses to exceed 10 percent of your income. The complete credit card balance should always be paid off at each monthly statement. If you accumulate credit card debt, you are either living beyond your means or not following Rule 5. If you have no credit card debt, this will free up 10 percent of your income for other more productive uses.

9. Basic living expenses, such as food, clothing and utilities should not exceed 10 percent of your income per two-week period, or no more than 20 percent per month.

10. Following all the above rules should provide enough to pay taxes and insurance. Taxes should never be more than 10 percent of total income, but the income tax bill is often more. Those who pay higher income taxes are burdened with having to extract the excess amount over 10 percent from other items in their budget. As a result, it is tempting to break some of the 10 percent rules just to keep pace with taxation. It should be society’s goal to force government back into the 10 percent box. Personal finances would be better off for it, and, I dare say, so would the government.