“It is not how much you make or earn, it is how much you invest.” This is probably the best advice I have ever heard. Most often people get confused between saving and investing. By definition, any money which gives back more money can be called an investment. Yes, your savings bank will give you 2% per quarter, but you should be foolish to count that as an investment. Please be warned that I am no expert finance advisor nor do I understand a lot of the finance jargon. All that I am trying to do is share what I have read and heard over the last couple of years. Probably this post will make a lot more sense if you are in your early twenties.
Investments… What!?
Unfortunately, most of us think that investing money is only for the rich. However strange it might sound, the truth is that even a person who earns 10,000 rupees a month can invest smart and get good returns in the long run. The earlier you invest, the smarter you are. If you would like to know why, see this page. Investments can be considered as passive income, that which makes money even without you doing anything! 
The more passive income you have, the more financially free you are.
How much to invest?
It is ideal to invest at least 50% of the money you earn. If you cannot invest that much it is best to invest as much as you can. Here are a few tips that will help you invest more.
Where to invest?
Assuming you are in your mid twenties, you should be looking to invest money that will enable you to pay off your debts (for home, car etc.) by the time you are in mid forties. Stop thinking about how much you will get in the next couple of years. All investments should be made such that you don’t have to touch them until you are in your forties. Public Provident Fund is one such investment scheme which will pay back in the long run. It is a central government backed fund, so there is absolutely no risk involved. However, the rate of return is low compared to mutual funds, but I believe it is best if you invest a portion in something that has zero risk and the rest in mutual funds or insurance. Even if you are interested only in mutual funds, think long term, at least 10-20 years from now. Starting a PPF is extremely simple, just walk into any SBI bank and they will help you out. For mutual funds and other such investments, you can call up the toll free number on their websites.
Remember, invest first, spend later! The secret to being rich is not how much you earn, it is how you invest. You can be earning a million rupees a month today and still be starving a few years later. Similarly, you can be earning a few thousand rupees, but live king style a few years later.
PS: This is my first such post, if you think this makes sense let me know and I will write more!
Hmmm… Makes complete sense to me!! waiting for more such posts !