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Use the money to buy equipment. Buy stuff that replaces equipment that needs upgrading. The goal for the first 25 lvls is to sell everything and buy any equipment needed that you don't get in drops. Having the best equipment will help you lvl much faster.
Flag this...Up until lvl 25, unless your a twinkie, just skin and get drop armor. If you are diligent and a decent player you will level fine without needing to waste money buying low lvl gear. I have found very little need to buy armor, unless it is something that really appeals to me.
At 20ish if you are alliance, hit VC and get some decent green gear. Stockades at about 25, and gnomer in your 30's. 35-40 hit SM, thats where the better gear starts to drop.
I never bought gear for my priest, she ran SM and got farmed any and all cloth blues that drop there, and was oufitted before she could even wear them. I picked up other drop pieces between that and devout gear, but she was outfitted with all devout minus the robe at 54. The robe has eluded me for 6 months after turning 60..damn that robe.
My hunter is the same way. I think I may have bought her a pair of pants and have a few dragonscale items crafted for her, but not until her late 40's.
Everyone lvl's differently, I lvl'd my hunter by grinding beasts as she was a skinner. I lvl'd my priest after 35 solely in instance, and didn't grind a bit until 59. I would worry about your grinding more then spending time in the AH buying. Most of the time esp after your 20's you will get world drops of decent gear, or have guildies that can craft for you.