You Can’t Afford To Outsource The Management Of Your Money
Many people complain that managing their personal finances just takes too much time. Besides, it’s boring to track expenses against a budget, file credit card receipts, reconcile credit card statements and bank statements, and so forth. These folks figure they can spend their time more profitably doing something else—possibly anything else.
If you’ve hung around this blog for long, I trust you are not one of those people. By now, you realize that taking a few hours a month to keep track of your finances, to give some thought as to how you spend your money, and to put some of that money to work for you is time well spent.
I often talk about living a cash-based lifestyle or a frugal lifestyle in which money management is incorporated in to the routine of everyday life so it doesn’t seem like one is spending much time at all in the management of personal finances.
Daily money managers
Still, you may not be convinced that managing your money is a profitable use of your time. If that’s true, then it should be worth your while to hire someone to do it for you, someone like a daily money manager (DMM). Yes, there is such a service. According to the American Association of Daily Money Managers (AADMM), these credentialed professionals will do all of those money management tasks that aren’t worth your time:
- Bill paying, including calls to payees regarding incorrect bills and the preparation of checks for you to sign.
- Balancing checkbooks and maintaining organization of bank records.
- Preparing and delivering bank deposits.
- Organizing tax documents and other paperwork.
- Negotiating with creditors.
- Processing and following up on medical insurance claims.
- General organization assistance.
An article on daily money managers featured on FoxBusiness.com
reflects a broader scope of services offered by some DMM’s that include budget preparation
, production of cash flow reports, opening and sorting mail, setting up of personal finance accounting systems such as Quicken, and the preparation of paper and digital financial file systems. They will also assist in settling disputes with creditors, consolidating bank accounts, mediating between spouses when money becomes an issue in their marriage, and debt management.
Ready to outsource your personal financial management? Hold on to your wallet. Daily money managers typically command $75 to $100 per hour for their services. What? That’s more than you earn per hour? Well, maybe managing your money yourself is a profitable use of your time.
Daily money managers have their place
Daily money managers can be of help to busy, high-salaried professionals for whom it makes financial sense to outsource the management of their money and for the elderly who may not be confident in their money management abilities anymore and don’t have an adult child to assist them in this area.
Most of personal finance is common sense. Want to get ahead, financially? Spend less than you make and save the difference. Want to know where your money is going? Track your spending. Want to get control over your spending? Create a budget. There is nothing difficult about reconciling bank and credit card statements, paying bills, or keeping records. You don’t need a professional to handle your money. The challenging aspects of personal finance, identifying priorities
, setting goals
, making a plan, and having the discipline to execute it
, are still your responsibility whether you hire a daily money manager or not. Only you can make those decisions. But what about time to do the work? Time? How can you not have the time? Now that you know money management is worth $75 to $100 per hour, you’ll find the time to do the work.
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