When it comes to money, I think that one should consider the past, present and future. Money should be spent on past debts, and regular expenses such as rent, hydro, food, etc. Investments can be made for the near future (1 - 3 years) and for the long term (3 - 5 years and 5+ years).

With this in mind, I think there should be a balance between spending and investing in the past, present and future. This balance varies with the person and it can change over time.