Much of it depends on what type of music you want to play. It also depends on whether you are interested in developing your own sound, or if you want to accurately recreate the tones of other guitarists.

Yes, it is VERY overwhelming.

You can get a lot of mileage just from adjusting the controls on your amp and your guitar. Play with the different pickups on your guitar.

Personally, what I did was I bought a well regarded multi-effects pedal that includes an expression pedal so I can use a wah. My thought was to use this for a while and see which effects I gravitate toward.

Our of the 99 or so effects and amps it emulates, I find I'm gravitating toward tube screamer, delay, wah, and distortion. Before I got the multi effect pedal, I thought I'd need chorus and flange also...but I haven't used either in over a year.

That's been my approach.

Good luck!!