<prompt> Human: OK yesterday was a huge milestone for me and my wife. We finally paid off every last cent of our debts. That includes our student loans, car loans, credit card debts, and our mortgage. Overall weve paid off 653,214.32 USD. It took us nearly 5 years to do that.The problem right is that weve lived so frugally in for so long that were a little out of touch as to how we should live and how much we should save now. So I thought Id ask for help.After tax Income Me: 95K Wife: 115KMonthly costs Cable: 45 Phones: 60 Transport: 200 Food: 250 Other: 150Assets 401K: 103K combined. We contributed enough to get matching dollars. House: 220K Savings: 12,300 Emergency fund Checking: 3,200 leftover from paying the last debtsNeedsWants Cars for both of us, we dont have cars now Move to a nicer house Increase qualify of life A nice vacation, I think we deserve it as we havent had any since our honeymoon---We were very clear headed and focused until now as we always had one goal, save as much as possible and pay off our debts. But now that weve done it, its a lot less clear as to what to do. The only thing thats clear to me is that we should now increase our 401K and IRA contributions to max amount, before we get used to the increase in money that we have available. Im 33 and shes 32, I think were behind on our retirement and we need to catch up.So what we struggle is how much to spendsaveetc about the rest of the money. How much to save for future house wed like to buy in the 500-600K region. What price range should we look into for cars? How quickly to move for each goal? Im using an iPhone 4, wife has a 4S. We dont even have a TV. Weve been eating the cheapest food, our furniture is rubbish, and many others things wed like to improve in our lives.Id appreciate any tips and insights for this. I never thought that getting debt free would be so confusing.  <response>: The problem right is that weve lived so frugally in for so long that were a little out of touch as to how we should live and how much we should save now.This is a very personal question. My reply is to ask if your life is okay the way it is? If it is, keep living frugally. If you increase spending, youre going to get on the Hedonic Treadmill which means you will increase pleasure, but after awhile that pleasure goes away, so you increase spending and get more pleasure, but it only lasts a short amount of time. Eventually your spending has increased so much that you cant increase it anymore. The solution to this lifestyle inflation is to never participate, so keep spending the way it is now.How much to save for future house wed like to buy in the 500-600K region.Why not buy it and set your goal to pay it off in in the next 7 years while maxing 401kIRA PS, this may not be optimal, but its still good. 