1. The normal way: rent, utilities, cell phone bills, car payments, beer, and Starbucks Frappuccinos.
2. Long-term goals: college tuition, opening a retirement account, saving for a down-payment on a house, planning a vacation.
3. Giving: giving money away to a person or organization that really needs it.
We tend to spend our money in this order, 1-2-3. Ironically, personal happiness tends to come from spending money in exactly the opposite order.