Can you afford your lifestyle? How much income does it really take to live the way you want and what can you do about paying for it?

First of all, what is a "lifestyle"? Well, it's the quality of your living and working environment: the house you live in, the clothes you wear, the food you eat, the car you drive, entertainment choices, etc. In other words, it's everything that you spend your money on. And this chosen quality of living has a cost, and one that's probably more than you think.

Many Americans have grown up with the idea that they deserve a certain lifestyle, given a certain status from education or familial connections. And many of us live that lifestyle--whatever it takes. Unfortunately, for all too many, our tastes cost more than the income we generate.

So where does the rest of the money come from? Debt. In fact, for years, a huge percentage of the population has been paying for their lifestyle with credit cards and a variety of loans. And we've just seen the kind of trouble that this particular strategy can cause. So what to do?

One thing that you should do, preferably right away, is to take a hard look at what your lifestyle is really costing you and how much money you would need to make to actually afford it.

Almost everyone has heard the general rule that if you spend less than you make, you'll be okay. Well, that's not quite the case... If, for example, you make $100,000 and spend $90,000, you ought to be fine, according to that rule. But, if you want to have ANY cushion at all from the inevitable but somehow unpredicted "emergency" or (don't laugh) put away money for retirement, you need to make WAY MORE money than you think you need.

How much? Start with doubling your current income. That is the first target. Then you will have money to not only pay for your current expenses, but you will also then be able to create new necessary expenses like putting a reasonable amount - at least 20% -- of your gross income into savings for that emergency that is right around the corner or that retirement that will never come unless you plan now.

Only earning more income and spending less will resolve living beyond your means. There is no other magic to it.