Which is correct?
He lives as he wants
He lives how he wants
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They are both grammatical and they both mean essentially the same thing.
He lives as he wants.
He lives how he wants.
→ He lives (in the way / in the manner) he wants.
In the first sentence, as is used in the following sense:
: in the way or manner that
// Do as I do.
The statement is fine grammatically. The social or target audience may see it differently. As presented, it's vague.