What’s the Best Way To Invest $200,000?

[Music] brought to you by the every dooll app start budgeting for free today Robbie is in Austin Texas hi Robie how are you good how are you doing Dave better than I deserve what's up so I have no debt on my name there were some debt I cleared it out last year the only thing we have is our mortgage which currently is at $350,000 I have a stable job I earn around $150,000 from a job I have a wife and two sons and I have $200,000 in a savings account I cannot figure out if I should invest in a real estate and then create a passive income or are there other better options that I should go for I don't know if you'll like my answer but if you filter this through the ramsy baby steps which people have followed to become baby steps millionaires you would be at what we call Baby Steps four five and six so invest 15% of your income or saving for the kids college and any extra money we're going to throw at the mortgage principal so we have found that one of the keys to Building Wealth longterm is to get a paid for house in the mix and it's not one of the keys to Building Wealth longterm is not keep a 200 or $350,000 mortgage while I go do real estate that I learned on Tik Tok gotcha that didn't come up that never comes up when we interview millionaires what always comes up is we dump money in our 401K our Roth IR ra and we paid off our house and I've got 800,000 bucks in my 401k and my house is worth $600,000 and it's paid for and I'm 53 years old that's a typical millionaire and so$ 800 and 600 is $1.4 million net worth right that's that's a typical millionaire so we're always going to lead you first to be debt free which you've done congratulations great job second to have an emergency fund at mayy step three of 3 to 6 months of expenses and then exactly what George told told you four five and six is 15% of your income which is just out of your 150 income going into retirement uh starting kids college funds you can do that out of your 150 as well which leaves the 200 I'm assuming you have other money other than just the 200 and I'm going to pay off my home as fast as I possibly can then and uh with you I think in your situation you're going to have a paid for home in 2 or three years and then you can invest even more and you can invest in a broker retir incredible ma' Robbie what I did when I when I followed that a thousand years ago I I am I'm still Blown Away to this day and I know the math I know compound interest I know what it looks like but I'm I took an old house payment and rounded it up 500 bucks when I paid off the house and I put that amount of money into a separate mutual fund and how fast that one mutual fund was a million dollars blows me away to this day I look back and I go that stinking that was a breakthrough you know and so that's why I know the math works is I actually lived it and walked in it the key wasn't you leveraged debt the key was you your savings rate your income was freed up because you didn't have any payments I didn't pay off the house and then spend the house payment I paid off the house payment and took the house payment plus some and invested that plus invested more but that one account just not having a house payment how fast that one account became a million dollars in mutual funds was blows my mind that's amazing it's just amazing cool goal to have you take like 3,000 bucks a month that's $36,000 a year going in how fast that blows up I mean you're not talking about five six seven years it just blows up it's crazy so yeah but we don't think about investing three3 $4,000 a month we don't think about that well we're trying to do 17 things at once that's usually our problem exactly create your free every doll budget today the simplest way to budget for your life