Harry and Penny were in their mid-thirties and facing the types of toughdecisions many young couples face.  Harry was feeling a lot of financial stress when I met him because he wanted to provide a better style of life for his family.  Penny, his wife, was no longer employed since she chose to stay at home with their two year-old daughter.   They wanted to have another child but their two-bedroom townhouse was very small.  With only one full-time salary, the prospects for buying a larger home weren’t good.

 They lived from day to day.  Even though they were practical about spending, they had a hard time making ends meet and often had to dip into their savings account.   As he calculated his lifetime earnings and what he had been able to save, Harry concluded he was barely beating inflation and taxes.  How could there ever be extra money to buy a house, or provide financial security for his family?  It worried him almost every day.

 Harry was very open about discussing his financial situation and concerns.  He said that growing up with his immigrant parents and seven other siblings had been tough.  His parents worked hard to provide for the family, but there was never quite enough money and always one more bill to pay.   He felt that although he had a secure job, he would always be at the effect end of money continuums.

 Most of their conversations about money focused on their current situation and the stressors of making ends meet--paying the bills, and having enough money left over for some simple pleasures.  Their high level of anxiety and tendency to worry kept preoccupied with today instead of thinking creatively about tomorrow.  In other words, Penny and Harry had no plan.

 In our working together, Harry learned that his tendency to focus exclusively on his disappointments with his current financial status kept him a prisoner of money.  Harry was much more worried about never having enough money and losing money than he was motivated to earn and accumulate more money.

 Penny had learned how to compliment Harry and had adopted his point of view.  She was responsible for the household budget, but didn’t get involved in managing his 401k savings plan investments or benefit package.

 In developing a strategy and financial plan--which was the natural next step--they would discover more about their individual and joint money styles and build them into their plan.  They would have the opportunity to compliment one another’s personalities.   They would focus both on their strengths and on their weaknesses, and they could use the insight gained  to make sure they were making the best use of the  money that they had.

 Harry learned that his fear of loss and his high level of anxiety prevented him from benefiting from opportunities that came his way: chances for job improvement that required some short-term uncertainty; investments with greater risk but with opportunities for greater return; and exploring the benefits of refinancing their mortgage and lowering monthly payments.

 Harry and Penny didn’t have to accept their financial status as a dead-end street.  Just as Harry found out, there is a plan for everyone.  Financial personalities such as Harry’s must transform their high work ethic from simply working hard to working smarter and more effectively.  They also have to change their self-image as ineffective money managers into confident, successful money managers.  If Harry and Penny had continued to expect financial disappointment, they wouldn’t have tapped into their financial potential.   That financial potential paid off for them in making their financial personalities work more cohesively and productively.  They were able to buy a larger home, and have a second child with Penny remaining home to raise the children.  They now live without daily financial stress.  They have learned to manage their money to assure their financial future.