For a scenario where you are clearing off study loans or the like, you may find yourself saving little while paying off the loan. This is ok, but do not spend all your free cash flow clearing off the loan as you will still need to save to have an emergency fund. If however, you do not have any loans to pay off, try to do at least 20% of your take home. As your salary increases, don't increase your expenditure, but increase your savings. A rule of thumb is that if you are single, try to hit 60%. You will find that once you are having commitments such as being in a relationship or starting a family, your saving rate will naturally take a hit. So save hard, and early. If you want to save aggressively, consider doing what I did, which is the moment my salary was credited, to move my targeted savings to another bank account that is not easily accessible, (CIMB worked for me, as they have no ATMs except at their 2 branches and I locked my token away). This helped me squirrel away a decent sum every year as both emergency funds and a warchest for market opportunities.