"Max out your 401k unless it is truly a dog (ie only offers company stock or high fee annuities). This will get you started and help with your taxes. You can always borrow against this money (as a last resort)."You made the very interesting remark, "and help with your taxes." With the exception of a 401(k) being tax-deferred, does it help in any other way with my taxes, or do you simply mean that portion of my income invested in a 401(k) isn't immediately taxed?"Set up an emergency fund of 3 to 6 mionths of expenses, depending on your risk of losing your job and your ability to reduce expenses on short notice. Plunk this money into a money market fund."Good advice, and something that has been mentioned to me before. That will be my first action."Realy think twice about buying your home right now."Funny that you should say that. My mother and several friends advocate that I quit "throwing my money away" on rent. However, those that invest say that right now is a bad time, and that because my rent is so low it's best to just wait. In fact, from some estimates, what I pay in rent will actually be consumed every month by the new house for a year or so as I improve it. While that may be an "investment" per se into the value of my home, it does make a good case for just maintaining the status quo until I see an absolute steal of a deal.In addition, interest rates are a bit high right now.. and if I buy a house my girlfriend might get the wrong idea! ;-)For anyone still interested in this thread, here is my current plan in the order to be executed:1. create a money market account that contains 4 months of no-job money--DO NOT TOUCH2. invest the max rate into my 401(k) that will be matched by my employer3. invest all other "savings" into a RothAnyway, I have at least one more month until I will actually execute this plan, so I will read more about Roth and other vehicles for investing money. Thanks for the help everyone!
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