What are some good lenses for a Nikon D5000?

I really want to take pictures of just my life, and people around me. I like the bokeh effect, and I don't know which lens to buy. I'm willing to spend $250 max.

I really like the 35mm f1.8 also. It's sharp, light, and fast. If I were you, I'd try to trade in (or sell) your 18-55 lens to get the 35 f1.8, unless you find yourself shooting wider than 24mm often. (I swapped my kit lens for the 35 f1.8 on my D60 last year, and was very impressed.)

The 35mm f1.8 costs just under $200 on Adorama:
http://www.adorama.com/...3518U.html

Another suggestion would be the fantastic AF-S DX 55-200 VR. Zoomed in to 200mm at f5.6 gives you great bokeh, and it is also a great lens, though not nearly as good in low light as the 35mm.

This lens costs $150 refurbished by Nikon on Adorama:
http://www.adorama.com/...00VRR.html