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You're listening to Ramsey everyday millionaires where we talk investing, retirement, building wealth, and outrageous generosity. Bryce is with us in Louisville, Kentucky.

Hey Bryce, what's up?

Hey, thanks for having me.

Sure, how can I help?

So I have around 34,000 saved up and I make about 4200 a month. I spend probably 1,500 after bills and food and I was just wondering instead of me putting money into my 401k and instead

could I just invest in real estate and like put like rental properties up and so I can have a

state an income at all times. But you don't have the money to buy a rental property?

I was going to go and take out a FHA one.

Yeah, which tells me you don't have the money to buy a rental property.

So, um, we, Bryce, what we have found is that the people that avoid debt, including

rental properties, are the ones that prosper.

I own a bunch of real estate, I love real estate. I'd love for you to own some

real estate since you want to someday is a part of your life, but I want you to pay cash for it. Do you own the

home you're living in? Yes. Okay. Is it paid off? Yes. Good, good for you. What's it worth?

I got it appraised last year. It's probably worth $120,000. Good for you. Good for you.

So I got it for 30. Wow, you got a deal. Good for 30,000. So I got it for 30. Wow you got a deal good for you. Well that's cool. So I'll tell you what I did and I would recommend you do something similar. Okay. We recommend that if you're out of debt and you have your emergency fund in place, then we do baby steps four, five, and six, and baby step four is 15% of your income, which is, you know, you're making like 50

60,000 dollars a year okay and so we're talking about seven

eight thousand dollars a year is all okay going into your 401k

Roth preferably if they have a Roth available and with a match that'd be wonderful

and some good mutual funds.

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