There is no definitive measure to assess whether your expenses proportionate or not. The important thing to note is that you prioritize the spending of the principal and do not forget to pay tax on your income. While the rest of your income, you can freely use without sacrificing the interests of the future.

As long as your expenses are under revenue and still have a surplus for savings, it can be said that you are not wasteful. However, how much should you save of course depends on the financial goals you want to accomplish in the future.

If the financial goals you want to achieve it only education funds, the funds can be saved through regular savings. But, if you have other financial goals are to prepare the funds from now, then you may want to develop these funds to make investments, not just saving money in a savings account or deposit it.

There are several kinds of savings that I recommend. The first is a working cash fund to accommodate the expenses that are not fixed or expenses not previously budgeted. The amount can be made flexible about two times your monthly expenses. This is so you do not easily reduce the savings to pay for routine expenses that are not fixed.

Second, the reserve fund that serves as a backup routine for income replacement in case if there is a problem with your regular income, for example, if a dismissal or illness that causes cannot work and the loss of regular income. The amount could be three times to 12 times depending on the routine expenditures job security and how quickly can find new revenue sources if you are fired.

Both kinds of savings had been made in advance so you can comfortably prepare future needs without interruption by the short-term interests. If they’ve made, then the rest can you save for the sake of the future as education funds and pension funds.

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