Not only is it important to save to build a strong financial corpus but equally important is for you to find out whether your Rate Of Interest is greater than the inflation rate.
Obviously, you would not like to enter a debt by taking a personal loan or any loan to meet any emergencies or requirements. So in order to secure yourself a safe income pursuit along with inflation woes, invest as much as you can when your Rate of Interest is greater than the inflation rate.
You regular monthly savings will go a long way in helping you build a long term portfolio. The monthly investment can be done by a combination of funds- diversified, large cap, mid cap and hybrid-equity, and for debt exposure your Provident Fund and dynamic debt( also to provide some liquidity to the portfolio) through mutual funds. All these investments need to be made through a systematic investment plan.