You want to keep a few months living expenses away in a Rainy day fund. I actually kept much more and it helped me 2 times greatly: * I was laid off from my fi

You want to keep a few months living expenses away in a Rainy day fund. I actually kept much more and it helped me 2 times greatly: * I was laid off from my first job; I had more than enough saved to ride out the couple of months I spent searching for a job. It was actually a nice vacation. * I'm currently moving to SF for a new job. They do pay for relo, signing bonus etc. but you get the cash only after you start working. You need that liquidity to pay for moving, security deposit/rent etc. After the rainy day fund, follow the great advice others have said and invest aggressively in ETF's with very low admin costs. I'm personally a huge fan of Vanguard Admiral Shares.