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FACT: We spend a portion of our income every minute of every day. Even when we are at home sleeping, we are spending on the place we are sleeping and the utilities to make that place comfortable. If we have debt, then we are spending every minute on interest to carry that debt. The question then becomes How much income do we REALLY need?

Finding the EXACT answer to that question is the missing ingredient to achieving financial freedom. Estimating the amount we need is dangerous, as we usually under-estimate. Its easy to forget the small bits of money that constantly leave our hands and is never added up. A mis-estimation of how much we need to make is the amount that usually ends up on credit card debt.

The way to discover the exact level of income you need is best done by figuring out what you are actually spending on a weekly basis, and exactly where that money is going. Take out your checkbook and credit card statements and start making a list, by type of expense, of each dollar you spent during the past 12 months.

The more detailed the types of expenses are, the better. Rather than a general expense called Entertainment? list out what that entertainment was: movies, popcorn & drinks, Disney World tickets, souvenirs, dining out, pizza delivery, coffee at Starbucks, golf fees, video rentals, event tickets, music CDs, and parties.

Divide the total of each type of expense by 52 weeks and youll have what you spend each week on that expense. Add those up and youll know EXACTLY how much income you need each week to fund those combined expenses. That becomes your budget: the MINIMUM level of weekly income you need just to pay for what you are spending now. When you know exactly how much you need each week, it raises the necessity to work out how you are going to get in that level of income right now.

Take a look at the immigrants who left their homes, their country and whatever meager assets they had, to start a new life in the United States. They knew they needed substantially more income to guarantee their long-term survival. Their necessity was high enough to take that courageous step of moving to a country without a job, with no place to sleep and not even knowing the language in most cases. They were willing to do whatever it took to better themselves financially. Many said those immigrants would amount to nothing. Now those immigrants own the vast majority of the land, the buildings, and the businesses in the United States.

It works the same way for an individual, a family, or a business. To be effective, planning out the actions of how to raise your income must start with the ingredient of knowing exactly how much income you need each week to survive, and how much more income needs to be made to gain your financial freedom.

Sandra Simmons, President of Money Management Solutions has years of experience helping business owners and individuals manage their money to reach their financial goals. Find out how you score in managing your money using the FREE Money Management ScoreTM analysis tool.

2007 Sandra S. Simmons. All Rights Reserved.