There is arguably no better use of your money than to give yourself the gift of freedom. By saving carefully and creating passive streams of income, you’ll be the master of your own destiny. Whether you want to check out of the workforce in your 40s, or even before, there are some key rules you’ll have to adhere to, unless you’re expecting a big inheritance.

Save At Least 20 Percent

If you want to have the financial freedom to do what you please with your life, you have to get used to saving big money. It’s more about what you save than what you earn. You can have a big paycheck each week, but if you don’t set some of it aside, you’ll be a slave to your job forever.

If you’re hoping to retire early, you need to be aggressive with your savings. Shoot for a minimum of 20 percent per year and do more if you can. It might seem too strict, but you’ll be glad you did it when your coworkers are desperately hating having to get up each morning for work. You’ll be able to set your own schedule, and for many people, that’s well worth having to scrounge and save for years.

Write Out Your Goals

A good plan is a written plan. To end up where you want to eventually be, you can’t just wing it. You have to define where you want to be and by when.

Make a list of goals, stating how much you want to have in the bank and attach a specific date to it. Then do some calculating and figure out how much you have to save to get there.

Be specific about your plans – the best plans aren’t just ideas. They are ideas with key details included.

Be Willing to Think Outside the Box

To be financially independent, you’d be wise to create some passive revenue streams. Those are sources of income that require little to no work on your part. You could become a landlord by buying an investment property. But the key to some money-making opportunities is that you have to have some money set aside to make money.

With real estate, for instance, you need to be able to afford to put a chunk down on your property and make the payments on time. That can require some savings. And that’s why being a good saver is so important to your financial freedom plan.

Keep Your Debts and Spending Low

You’ll find it much easier to be financially free if you don’t overspend. You need to decide what’s more important to you – having total control over your time or having designer clothes, a high-end car, and a nice, big house.

Are you willing to live in a smaller house, with inexpensive clothes if it means you don’t have to worry about working to pay your bills?

Make Sure You’re Protected

Your assets should be diversified. You should have some cash on hand to handle emergency expenses, and you should be adequately insured for any possible bad luck that’s headed your way.

Even the most money-savvy of us make big financial mistakes sometimes. The key is learning from them and moving on. But if you don’t want to lose sight of your financial goals by making a mistake, you’d be better off learning from someone else’s mistakes than your own.

Let them make the errors and you can benefit from their wisdom. If you’re a young adult, you might not have made these common money blunders yet. So there’s still time for you to avoid them if you pay attention to this list.

Credit Card Debt

Nothing can set you on a path toward financial destruction quite like credit card debt. As soon as you turn 18, you’ll start receiving these card offers in the mail. While having a credit card is a great way to build up your credit score, it can also create a debt load and a cycle of overspending that you’re not able to control yet.

So if you want to build your credit score without racking up thousands of dollars in outstanding balances, there is something you can do about it. When you receive your credit card in the mail, call the number on your card and ask them to lower your limit if they’ve given you more than you think you can comfortably handle.

Even a limit of $1,000 will allow you to build up your credit rating without sinking too far into the quicksand of credit card debt. If you are a subprime cardmember, however, keep in mind that you should try to avoid carrying much of a balance at all. Lenders will look at how much of your limit you’re using and you can be penalized if you’re using too high of a percentage of your available balance.

Skimping on Retirement Savings

Retirement is going to be the biggest expense you ever face – more so than student loan debt or even your mortgage.

You need to take it seriously. But far too many people put off saving for retirement until they are in their 40s and by then you’ve left your best years behind you when it comes to accumulating interest.

The sooner you begin your retirement savings, the better off you’ll be.

Buying More Car Than You Can Afford

Yes, transportation is necessary, but that doesn’t mean you have to travel in style. You just need something that gets you from Point A to Point B. Anything else is a luxury that you might not be able to afford.

And even if you can swing that $500 car payment, should you? There are so many other places you could be sticking that money, especially when you might be able to get by just as well on a $250 car payment. That extra $250 a month could go a long way toward paying off credit card debt, your mortgage, or funding your retirement.

Not Having a Clear-Cut Plan

Having control of your finances doesn’t just happen accidentally. It takes work. You need to plan for it.

Sit down for an hour this week and picture what you want your finances and your life to look like in 5 years and in 10 years. You’re the only one who can make that vision happen.

So if you want to be out of debt in 5 years, make a plan for how it will happen. Commit to setting aside money each week to make extra payments, either by cutting back on your current spending or adding a side job.