How to achieve financial freedom To achieve financial freedom, here’s what you need: A robust emergency fund. The more you have saved for emergencies, the better, but the recommended amount for an emergency fund is enough to live with no income for at least three to six months. The more you earn, the longer your prudent reserve should last. High earners should have one year’s expenses socked away. Living expenses ahead by one month. When you have enough money at the end of the month to cover next month’s bills, you gain huge peace of mind and can avert a financial crisis. Get one month ahead of your expenses. Zero debt. All debt leaves you beholden to a creditor and limits the choices you can make you’re your money. Being debt-free saves money – you aren’t paying interest charges to anyone. It gives you more options to travel, change jobs, take time off or follow a new, lower-paying career path. Zero debt also means you can fund your future now if you do earn money. Retirement savings. Pay your future self on a regular schedule. The more you save, the sooner you’ll be able to comfortably stop earning income without a downgrade in lifestyle. Financial freedom means you can weather life’s storms. Even “losing your job won’t be a calamity, but rather a manageable problem to solve,” says Guy Birken. “You’ll also feel more confident to take calculated risks, such as being an entrepreneur or going back to school.” To achieve financial freedom, you need to spend less and save more.