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yellowmac has good sound advice.
Do a search and you'll find much more information on investing on the forum.
I definitely agree, only leave enough in your checking to cover bills (a bit more so you don't overdraft). Move the rest into savings/investment accounts.
My rules of thumb, which don't work for everyone.
1) - keep 3-6 months worth of living in a high-yield savings account (if you get laid-off, or something bad happens you have a nest of money that's relatively accessible and your not found with your pants down).
2) - save 10% of my income in a Roth IRA or 401k for retirement.
Set goals for savings for larger investment purchases (for example, home), and little goals for smaller purchases, non-investment (vacations, future automobiles/motorcycles). I'm not planning to buy a car anytime soon, but since I have no present car payment I'm still saving the amount of a car payment each month, so if my car breaks down I have repair money, and if I decide to trade it in and get a hybrid, or less gas guzzling vehicle I have more money for a down payment and to reduce the amount of my loan.
3) - if you have debt, pay that off (this should be number 1)
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