Finance for Millennials by Millennials

The Six Tenets of Drunken Money

The Six Tenets of Drunken Money

Paul and John announce “The Six Tenets” of Drunken Money. We break down the steps any millennial can follow to achieve their financial goals.

The Six Tenets of Drunken Money:

  1. Dream – Have a tangible goal you’re trying to accomplish.
    1. Make it a SMART goal. Be as descriptive as possible about what you’re trying to achieve when you want to achieve it, and break it down into smaller chunks.
      1. Specific
      2. Measurable
      3. Attainable
      4. Relevant (or Results Focused)
      5. Time-bound
    2. Break down your goal into smaller chunks so you know exactly what you need to achieve each week/month.
  2. Budget – Build a budget and stick to it.
    1. We advocate following the 50/30/20 rule.
      1. 50% (maximum) of take-home income should go to needs (rent, mortgage, utilities, internet, food)
      2. 30% (maximum) should go to wants (going out to eat, drinking, Netflix, Spotify, clothes, sporting events, concerts)
      3. 20% (at least) should go to savings (for an emergency fund, investing to achieve your goals)
    2. Use an online tool to help you track your budget, or you can easily create an Excel spreadsheet.
  3. Manage – Manage your debts.
    1. We advocate paying off the highest interest rates first.
      1. Get rid of credit card debt, student loans, and auto loans.
      2. Check out our episode with Debt Roundup to learn more about paying off your debt.
    2. Pay off as much principal (the actual loan balance) as soon as possible to shorten the life of your loan.
  4. Invest – Begin investing in your future.
    1. Once you have your debts under control, it’s time to start investing to achieve your goal.
    2. Nobody ever says they wish they would have waited to start investing.
    3. Keith Blakely breaks down why it’s so important to invest as early as possible.
    4. Break down your goals into the smallest possible chunks so you know exactly how much you need to invest each month based on historical returns.
    5. Max out your 401(k) if your employer matches, invest in Roth IRAs, and talk to a financial advisor.
      1. We also love robo-advisors such as Betterment, Wealthfront, and Charles Schwab.
  5. Improve – Make sure you never stop improving.
    1. Strive to always get better at your job, by learning new skills and constantly building your network.
    2. Start a side business
    3. Constantly read books, internet articles, and listen to podcasts.
      1. You can learn anything you want with all the content available right now.
  6. Relax – Bring in passive income.
    1. This is the ultimate end goal of your financial journey – to make as much as passive income as possible.
    2. Whether through dividends on your investments, rental income, book royalties, or starting a business and letting somebody else run it for you.
    3. As soon as your passive income exceeds your daily expenses, you can retire (retire means you can do whatever you want with your time, you can never just sit and do nothing).

Special shoutouts and show notes:

Enjoyed this episode? Check out our dissection of Dave Ramsey’s Seven Baby Steps or our episode on compound interest.

Have any topics you want to be covered or amazing people you’d like us to interview? Let us know! You can email us at You can also find us on Facebook, Instagram, Twitter, and Linkedin. Please be sure to subscribe to our weekly mailing list at

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