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.