1) 10% to Charity

Before you spend a dime, you should take 10% “off the top” and give it to charity.

Charity is the act of giving back to the community. Contributing 10% is a good amount to strive for. You can certainly decide to go larger or smaller -- it's your plan.

This act of giving should be taught early in life. But it’s never too late. Take a tour of a place where people are truly helpless so you can learn to feel compassion. Once you understand what some are going through daily, you won't have any trouble parting with a dime out of your dollar.

The reason I said you should start practicing with any extra money you have is because you should practice while the amounts are small: It's pretty easy to take a dime out of a dollar. But it's considerably harder to give away ten thousand out of one hundred thousand.

I know you say, "Oh, if I had a hundred thousand I'd have no trouble giving ten thousand." I'm not so sure. Ten thousand is a lot of money. Start practicing with a little so you'll develop the habit before the big money comes your way.