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Set aside an emergency reserve of 3-6 times your total monthly expenses. This money will protect you in case you experience difficult financial times due to unexpected incidents such as accidental injury, sickness, loss of employment or any other emergency.
Save money in the short-term and medium-term probably as special fixed deposits. This can be used for your planned spending such as home loan down payments, travel expenses, purchase of desired items.
Save money regularly for the long term by practicing savings discipline. This may include tax-free fixed deposits or life/saving insurance which you can use after retirement and having enough money for your healthcare or other preferred activities.
Save money first then allocate some to make investments which provide an opportunity to gain returns higher than deposit interest rates. This way your money can work for you and increase in value.