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I spend between $100-300 per month. One of the great things about Adwords is that you can track the results of your advertising (conversion rates, Google Analytics) and adjust your campaign to make sure it's cost effective. In other words, if you know that every $1 of advertising on Google gets you $3 back, that's advertising money very well spent.
I've been advertising with Adwords for a couple years now but just revised all my campaigns after reading Adwords for Dummies. It's an easy to follow book that tells you everything you need to know to get started advertising with Google. I highly recommend it as a starting point.
Andrew
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