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the big question is will you eat out all the time?

You can easily spend 300-400 rmb per day before you know it, just on just your 3 square meals and coffee even if you're trying to be careful, eating out.  Starbucks is 33 rmb each.  Fresh juice or smoothie 30-50.  Some indian restaurants have great bargains, though, a big buffet for a set price, I heard.

Even with this, I'd think you could save 15 or, being careful, possibly 20K a month.  The biggest factors overall will be
1) food
2) how much transportation on a daily basis (taxi to work at 50 rmb/day vs. subway for 2-6, let's say).  Living close enough to bike or walk is a very good idea for many reasons

I could be missing something.  We cook at home, and even then it's not exactly cheap....

Thanks @lioralourie. So food is something to watch out for. It is good that you pointed it out. I was budgeting too low for it. Mostly, I will cook Indian food at home (I suppose there are good Indian Grocery stores in Shanghai). I think I should not eat out at all. I am going to live nearby to my workplace so transportation will be at a minimum. I was hoping to live off on a budget of 3500 - 4000 RMB per month if I cook at home and keep the transportation minimum. Let's see how it goes, I am still few months away from reaching there.

Here is what I am expecting per month to spend, do correct me:

Food - 2000 RMB (Indian food cooked at home)
Transportation - 100 RMB (Mostly public transportation)
Utilities - 700 RMB (Electricity, Heating, Garbage, Cell Phone, Internet)
Fitness Club -     300 RMB
Miscellaneous - 500 RMB
Total    3600 RMB per month

There is an Indian store here in Beijing, I'd bet there is one in SH!! Sounds like u are on the right track - best of luck!  That's a pretty nice salary!!

and...if you're like me, the valuable space inside your 2 bags (or, more likely these days ONE bag) will be spices !

Most are available in China these days (esp if you find a special store like Indian store) but when they are not, Iherb.com is a real help.  You can search this forum for coupon code uri094 as I just posted all the details in another thread about food and cooking...

best,
Liora in Beijing

As a single person you can live with 4000 RMB a month ( excluding housing). You can even live with less, but then you will need to be very careful with your expenses and count every Yuan.

You can have a very good life in Shanghai. Our average salary is 5500 before tax. Of cause, we have some tips to save money. Welcome to china, and if you need a moving company, you can write to me.

i live on a 100rmb budget per day after paying housing expenses.
weekends i have a higher fun budget.. as well as my usual taobao monthly spending allowance.
i save 16,000 each month.