Irwin's Ten Commandments
I. Thou shalt save at least 10% of your gross income, 20% if you have a good year, until you are
II. Thou shalt know how much you earn, spend and save in a year. If retired, thou shalt calculate an
appropriate amount to withdraw.
III. Thou shalt count your investments and other assets and liabilities, and calculate investment return, at
least once a year.
IV. Thou shalt put away money for college for your children (or get their grandparents to do so).
V. Thou shalt have the capacity to pay off your mortgage and other debt before you retire.
VI. Thou shalt invest at least 20% of your money in the common stocks of many companies
around the world.
VII. Thou shalt lend at least 20% of your money to businesses and governments in order to earn interest
and to protect principal.
VIII. Thou shalt exercise caution before investing in real estate, hedged investments, private lending, or
private equity. They can increase your reward and/or reduce risk, but only an expert can invest.
IX. Thou shalt have a will and obtain competent advice around estate taxes.
X. Thou shalt have life insurance and disability insurance, until you are financially independent.