Rather than look at what percentage of income to save, look at what you are spending first and is it possible for you to cut down on your spending.
if you want to save 50% of income but you have 60% of income into expenses, then it will not be possible to have 50% of income into savings
it will be good to start tracking your expenses and income for the next three months and then decide how you can increase your savings by cutting down on expenses.
using the seedly app will be a efficient tool to help you get the data you need
i personally use a excel spread sheet to track my income and expenses and the savings
with the data then you can know what is a realistic amount to save
In short, it should be:
Savings = 20%
Expenses = 50%
Investment = 30%
I throw my friends these ballpark numbers for reference, no basis, just numbers.
Level 1 - 20% of take home $
Level 2 - 30% of take home $
Level 3 - 40% of take home $
Level 4 - 50% of take home $
Level 5 - 51% or more.
Out of the % you saved from the take home $, you are free to allocate freely.
1) Giving allowance to parents are classified as expenses rather than savings, unless you belong to the group where parents will "give you back" when you get married group
2) Buying WL insurance doesn't includes in saving in my definition/context, but buying Endowment plan do account for savings.
3) Consistency is the key, if you can do it for 1 month, 3 months 6 months 1 year, always always increase , never decrease, once you decrease it means that either something "big" happened or it is due to your poor planning.