1) Save some cash for an emergency - I would recommend a month's salary at least.
2) Pay off as much debt as you can.
3) Save to where you can survive 3-6 months if you get laid off work.
4) Invest anything you can for the long haul.
It's all balance - don't kill yourself scrapping to save but keep in mind it's best to start saving as early as possible. I have my investments deducted from my paycheck directly so I can't even be tempted to spending the money so I base my spending on whatever's left from my pay check. That way I don't feel nearly as guilty as when I spend on motorcycle fun stuff.