Need some general direction

[Caldus]

I'm challenging myself to get smarter about money this year. I won't go into too much detail, but basically I am doing fine money wise. I'm at a point where I feel like I can start putting down additional money towards savings or investing in something. I am already enrolled in a 401K plan at work. Basically, my goal as of right now is:

- Create an emergency savings account of some sort.
- Diversify my investment portfolio by adding different types of investments like CDs, savings account, and maybe a Roth IRA (to start building towards a down payment for a house in the future possibly -- however, I have no idea how much more I can contribute to any IRA account if I already have a 401K at work).
- Pay off the rest of my new car (more than halfway done).
- Become more educated about how I'm contributing to my 401K.

So, if I have:

- Checking account with a value equivalent to about half of my salary.
- Debit card.
- 401K with a value equivalent to about half of my salary as well.
- Nice car.

How do I go about achieving each of these goals?

[jIM_Ohio]

I'm challenging myself to get smarter about money this year. I won't go into too much detail, but basically I am doing fine money wise. I'm at a point where I feel like I can start putting down additional money towards savings or investing in something. I am already enrolled in a 401K plan at work. Basically, my goal as of right now is:

- Create an emergency savings account of some sort.
- Diversify my investment portfolio by adding different types of investments like CDs, savings account, and maybe a Roth IRA (to start building towards a down payment for a house in the future possibly -- however, I have no idea how much more I can contribute to any IRA account if I already have a 401K at work).
- Pay off the rest of my new car (more than halfway done).
- Become more educated about how I'm contributing to my 401K.

So, if I have:

- Checking account with a value equivalent to about half of my salary.
- Debit card.
- 401K with a value equivalent to about half of my salary as well.
- Nice car.

How do I go about achieving each of these goals?

You need to ask questions...

I might suggest that you start "top down"...

1) Budget- make sure you know your expenses
2) assets- savings and retirement accounts- learn how they "all work"
3) taxes- make sure you learn more about your personal tax situation (your federal tax bracket, retirement plan tax rules).

I would keep the emergency fund in a savings or money market account and NOT in your checking account which might have a debit or atm card.

Your 401k does not restrict your IRA eligibility or contributions.

From a personal side the IRA and 401k should compliment each other.

Ask questions about asset allocation to learn more.

[zetta]

I would suggest starting with reading All Your Worth by Elizabeth Warren to set up your day to day spending and something along the lines of Investing for Dummies to gain some basic investing knowledge.