How much should we save?

It depends on peoples Earnings and monthly expenditures.

But setting a target is really helpfull i myself experienced this.

I set a target of buying a house in last year (in india)and reached the goal this year.

by saving monthly (almost like 12 to 15 months target ),Its also good to set small targets like 6months ahead and so on

I am here to hear more thoughts .

As far as my family goes, we save 1/3rd of our salary... irrespective of which part of the globe u r in.. cos 1/3rd goes as tax and we spend the other 1/3rd.

Savings can be in form.. monthly installment for ur housing loan, deposits, insurance premiums, reitrement schemes... anything as long as it is towards an investment. And with this philosophy of saving 1/3rd.. (though it is not a hard and fast rule.. and we do tend not to reach it sometimes).. our life has been happy so far (touch wood).

Anu