Lumifer comments on Low Hanging fruit for buying a better life - Less Wrong Discussion
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Totally agree with kitchen knives - i really loved the ones I received as a gift for xmas.
To add to that - I'd also suggest a really good skillet (eg I have a scanpan one). One good skillet every ten years is much better than having to buy a crappy one every year after the teflon peels off (or worse, eating all that peeling teflon). Also consider a deep saute pan with a lid, if you do a lot of multi-meal cooking - it doubles as both big frypan and huge pot.
I recently realized that the price of the skillet is quite comparable to the price of meat being cooked in it nowadays.