The first thing I thought of is it sounds a lot like using your visa to pay of your amex and then using your amex to pay off your visa, etc. Sure, in the short term you're ok, but at some point a giant debt monster is still going to show up at your door. But, by the time he does, the debt will be that much bigger.

We had to pay taxes this year - grrrrr. So our check will just go to replace the tax money in savings. Otherwise, it would have gone to a vacation somewhere, or 1/2 to vacation and 1/2 to savings. I think it's important not to look at this as an all or nothing deal, come to think of it. I think some or all of it should be saved, but if you get $600, there's no rule that says you either have to save it or you have to spend it. So, take $100, do something fun, and put the remaining $500 in savings. Although, if you're serious debt, I'd say swing it all over to debt payment, you never really had it, you'll never miss it and you'll be super happy when those debts are paid off that much sooner.