Most of my posts lately have been mostly market commentary. I'd like to focus a little on personal finance. Aside from debt reduction, which should be your primary financial goal when starting out, you need to have and use a money market or high yield savings account. These accounts offer interest rates much higher than local banks, offer almost no risk, and good liquidity.
To effectively use your money market account, you need to funnel all unused money into it. I keep a local checking account to pay monthly bills, but anything beyond that gets deposited into the money market account.
There are many banks offering these accounts. I use Capital One. They offer no minimum balance, free checks, ATM ability, and it is easy to transfer funds when you link your accounts online. They offer a 5.0% APY, which is a nice yield. There are others who offer a little higher, but I feel they don't offer all the services Capital One does.
I'd be interested to know what results people have had with other accounts, or what different banks have to offer.