The thing about margins is that you don't need to worry about the element's width.
Like when you give something {padding: 10px;}, you'll have to reduce the width of the element by 20px to keep the 'fit' and not disturb other elements around it.
So I generally start off by using paddings to get everything 'packed' and then use margins for minor tweaks.
Another thing to be aware of is that paddings are more consistent on different browsers and IE doesn't treat negative margins very well.
