Do you ever find yourself at the end of the month asking where in the world your hard earned money went?  It’s like someone punched a hole in your wallet and  money is falling out.

Consider this, if you buy a cup of coffee $1.96, one chicken biscuit $1.99, and a magazine $3.00 you’ve spent almost $10 at the drop of a hat.

“Little expenses really add up,” said Laura Coleman, personal financial educator with LFE Institute.  “Most people don’t think about where their money is going.  They make money and spend it, but they don’t have a system for managing it.”

Coleman worked with a couple living paycheck to paycheck.  With five children and a sixth on the way, the couple’s goal was to live on one paycheck so she could be a stay at home mom. When Coleman started working with them they had basically decided they had to have a second income.

“Money was causing a lot of conflicts and they had no idea what was happening with their finances,” said Coleman.  “They moved to a smaller home lowering their monthly payment and got rid of a vehicle, but still needed two incomes.  I worked with them to open communication and develop an overall strategy to find extra money and plug leaks.  Within a short amount of time we found $1,600.  They were shocked.”

Coleman contends that two of the biggest issues for couples concerning money are different spending styles and lack of open communication.  Nobody really knows what is happening with the finances.  When people don’t have control over their money and no idea where it is going they buy things they can’t afford, use their credit cards as part of their income and there’s never anything left to save for the future.

  “I have been helping people with their finances for many years, starting out as a mortgage originator,” said Coleman.  “Our clients were buried in debt and struggling to pay their bills.  What they needed was education and the skills to manage the money they had not another loan.  I wanted to provide solutions, not create more problems.”  

As a financial coach Coleman helps people develop a plan for managing their money.  One of the first steps is to understand that spending is often a choice and as consumers we only have one chance to spend that dollar.  LFE’s “$1,000 Card” helps people ask the right questions to make smart choices and save money.  

• Did I plan to buy this?
• If I have to pay cash do I still want it?
• What will happen if I don’t buy this?
• Do I need this or just want it?

The next step is to discuss financial goals.

“When people tell me they want to be financially successful I ask them to define success,” said Coleman.  “One person might consider success being able to pay down their mortgage while their spouse defines success as having money in the bank.  We work together to establish goals the whole family can get excited about.”

Once couples have common goals, Coleman teaches them strategies to stretch their paychecks, reduce debt, avoid financial traps and ease family conflicts over money.  

“Financial freedom comes from taking control of your finances,” said Coleman.