<prompt> Human: I just started a job a little while ago, fresh from college. I get 60k base so 5kmo, with an annual bonus that averages around 15 of base. Pertinent financial details: - No student loans or other debts - Around 15k saved in an investment fund - Around 7.5k put aside in an emergency fund Ive always been paranoid about saving as much as possible - I almost never spent my allowance as a kid, and I saved the majority of my income from internships during college - but Im concerned that this paranoia isnt leading me towards balanced financial decisions. Currently, Im spending and saving as follows:- 30 of my income 1500mo is going into my 401k, which allows me to bump up against the contribution limit. I get 100 of the first 5 matched, but this only kicks in after a year of employment. - 15 of my income 750mo is going into a post-tax savings account. I could push these funds into my investment account, but I havent made such movements as of yet.- Rent, utilities and living expenses have been hovering around 33-35 1650-1750mo. Although my rent expenses are fairly high woo-hoo city living, Im perfectly content with my lifestyle at the moment, and hence my other living expenses are in my view at least fairly modest.- The rest is taxes and the like. Im not sure what Ill do with my annual bonus, other than buy something nice, donate some, and pay for gifts for friendsfamily...Anyway, all of this to say, Im not sure if the way Im doing things is optimal. My biggest concern is that Im putting too much in my 401k, insofar that I might not have enough available if and when I want to make a large purchase down the line. Yet, since I have no real plans for the foreseeable future, it feels wrong for me to pull away from retirement and pay taxes on money that doesnt have a purpose yet. Ill also admit to feeling a certain psychological satisfaction from not having to pay taxes upfront on 401k contributions, however irrational that may be.So, heres my question: What should I consider doing in order to maximize the utility I get from my savings? Should I shift some of my 401k contributions into savings, or perhaps put some in a Roth IRA instead? Should I push any of it into my investment account?Apologies upfront if Ive buried information in minutiae, or forgotten to provide anything important! Thanks for any advice :EDIT: FormattingEDIT 2: Tons of really great feedback, thanks to everyone who took the time to advise :Assistant: Im actually in a very very similar situation to you! My recommendation would be to open a Roth IRA so you have some after-tax savings as well. I think its great to get close to the 401k contribution limit, but like someone else mentioned, its good to have funds in a few different places. Also, if you do want to make a house purchase at some point down the road, you can withdraw from both your Roth IRA and your 401k to help with the down payment. Im sure there are a lot of rules regarding how much you take out and everything, but I figured it would be useful to note!Human: Well, so a lot of my concern has to do with the fact that I know that withdrawals from my 401k would be taxed and fined. Practically speaking I figure I should never withdraw. Roth IRA accounts, comparatively, let you take out contributions at will, since they arent tax-deferred. So Im starting to think that, at the very least, I should shift a good portion of my 401k contributions to a Roth, just so I have that flexibility when it comes to making large purchases sooner or holding out and utilizing those funds later on.  <response>: Yes OP. Never withdraw early from your 401k! Roth idea is good. You can withdraw your contributions tax free. 