So one of the biggest steps after deciding that you want to save money is deciding WHERE to put the money? There are so many options out there, and so many different people suggesting places to put it. I’ve actually lurked on dozens of sites that have their own choices on where they put their money. My favorites links to those blog instances are, in no specific order:

Bargaineering
GenXFinance
Everybody Loves Your Money
Fivecentnickel
Living Almost Large
My Money Blog
My Retirement Blog
Beach Girl Blog

And here is what I came up with the months of research in the order I choose to put MY money:

0.  While writing this post about paying off credit, I figured this deserved to be first BEFORE you start investing, pay off your debt because you’re just building the CREDIT CARD COMPANIES net worth, NOT your own.  First and foremost is to pay these cards off!

1. Build Emergency fund – in the WORST case scenario my wife and I lose our jobs or lose our arms or something, we should have at 2-6 months of expenses ready to be paid for – this should be put in a money market account or high yield savings account, many of which are paying in the low 5% right now -

2. 401k/403b – If your company will match your investment, you’re silly not to at least hit the match. This is basically FREE $ from your company, and IMMEDIATE 100%return on your investment. Try to find that anywhere else.

3. ROTH IRA – You can’t beat the benefits of a ROTH IRA either - You contribute up to $4000 in 2007 ($5000 if over 50) and it is already taxed as you’re putting it in after you get paid, so Uncle Sam has already taken his whack at it. One of the biggest benefits here is that you only pay the tax that Uncle Sam originally hits you with. It is tax deferred when you take it out. One thing I can almost guarantee is that taxes are going to go up in the future, they always do. If you don’t think they will, maybe a Traditional ROTH is more your style. The one downside I can see is that there are phase out periods of the ROTH starting at a combined MAGI of $150,000 in combined household income; and not contribution after $160,000.

4. External funds (Index Funds, ETFs, REITs, Mutual Funds, and likely in that order for me) – As of now, I only have 1 fund that my mother bought in 1993 for $400 and it was mine when I turned 18 as it was a UTMA account - It is FGRWX and is worth almost $1900 today. I haven’t put any more in this - but I do like that it is a large cap growth fund with only a 1.07% expense ratio, so I think I’ll hold on to it. (It has a front load of 4.75, but I haven’t put anything in it, so that piece was taken out by Mom when she bought it.

5. Investing for college - There are several different options for this these days and there are a few questions to ask when chosing one of them:
How much can I contribute to the plan? 
 
a.  What are the plan’s investment options?
b.  What are the taxes?
c.  Who controls the money?
d.  Can the money in the plan be used for anything other than education?