This paper examines the factors associated with different areas of livelihood security at the household level using simultaneous equation system. The approach is novel to identify the targeted area of intervention to improve livelihood security level of poor households. We have used extensive quantitative data on the outcome indicators of livelihood security and suggested programme improvement for poverty reduction based on evidences. An increasing number of organizations are now engaged in collecting this type of data and so would be benefitted from the methodology and analysis in this paper. The paper is organized including – introduction, methodology of measuring the components of livelihood security (such as economic, food, health, education and empowerment), and discussion of results followed by conclusions.