If you ever wanted to throw in the towel and hand over your money to someone else to manage, there’s a group of people who will do this for you. They’re called Daily Money Managers, and they typically cater to the elderly, the wealthy, those who are too busy/too lazy, or pretty much any mixture there of.
And the reason I know this is because I almost became one of them :)
I get asked all the time if I could just manage people’s money for them if they paid me (which sounds super fun, right?), but I had no idea if this was “a thing” or not until I turned to Google…
And sure enough, it was! It’s not that well known of an industry, but there’s a decent sized group of people doing this and they have their own association and everything – AADMM, The “American Association of Daily Money Managers”– as well as their own code of ethics too. It’s not that well regulated, meaning anyone can do it if you can convince someone to hire you (which I wouldn’t ever advise, of course – either hiring someone you don’t trust or trying to manage someone else’s money if you don’t know what you’re doing!), but regardless this exists in case you were ever wondering.
I talked with a handful of DMMs when I was first considering this, as well as those readers who wanted me to jump into their finances, but at the end of the day I decided to become a Money Coach instead and help people *learn* how to deal w/ their money vs actually doing it for them. Since usually that’s more helpful, at least to the audience I’d be catering too (ie. not the elderly, wealthy/busy, etc).
Anyways, I share this with you today for two reasons:
- It’s pretty fascinating stuff, right?? :)
- Someone recently left a comment on my original findings and it re-sparked my brain, as well as a slew of other ideas for anyone who’s having a hard time saving/spending money.
I sat down to type a quick response to our new friend here, but twenty minutes later a dissertation was born and I thought I’d turn it into a blog post in case it could help someone else as well :)
Below is the comment that was left, along with some alternatives to hiring a manager:
This is needed for the following reason. We over spend. If there’s money in the account waiting for bills to be paid, it gets spent before the bills get paid. We don’t trust each other at this point because one or the other of us will do this – so we need a neutral third party to manage it where we give them the money but we have NO ACCESS after that to the money and the bills get paid.
Some ideas for you:
1) Give each of yourself an allowance! Literally xfer like $200/mo or something into a separate account under each of your names, and then do whatever you please w/ that $$ – no questions asked. You can blow it, save it, burn it in a fire – anything. But doing this will not only wipe away some of that stress/trust issue, but also *put a cap* on how much you both can spend without effecting the rest of your financial lives! Because I take it y’all have one or two main accounts set up for all your house and living expenses, yeah? The other idea of course is to go back to separate finances altogether and each put in agreed upon amounts to pay for stuff, but that could have other effects too…
2) Open up a bank account 100 miles away, set up automatic xfers into it for savings, and then refuse to set up online banking or get a debit card so the only way to get it is to drive the 100 miles :)
3) Schedule all your bills to hit on the same day every month (annoying to set up cuz you have to call or do it online, but it’s usually possible) and then pay ALL the bills the second they come in so regardless of whatever happens to the leftover $$$ everything’s been already taken care of. Then hopefully you’ve implemented one of the two above options so it’s not ALL spent.
4) Sign up to apps that automatically saves/invests money for you on a daily basis so you can’t even spend everything even if any of you wanted. I use Digit for savings (they analyze your spending/income and xfers over $$ into a *separate* account for you every couple of days that it knows you won’t miss) and then Acorns – which rounds up all your transactions to the nearest $1.00 and then drops the difference of the $$ into an investment portfolio you’ve set up with them. I’ve saved $3,800 w/ Digit over the past year, and $400 with Acorns so far… they work! So long as you don’t touch it :)
And of course, most important of all, y’all will have to deal with the underlying problem of things.
These fixes will only last so long (and you’re are smart enough to figure out work arounds if you really wanted to!), so you’ll need to address the trust issues going on at some point. My skill set doesn’t chart those territories unfortunately, but here’s a list of the best 10 relationship blogs from last year I found if you want to give any a shot: http://www.datingadvice.com/for-men/10-best-relationship-blogs. And then here’s a link to one of my favorite bloggers around marriage & money too: http://derekandcarrie.com/
All I know is that it’s GREAT you’ve both realized this is a problem finally worth addressing, and you’re now reaching out for help/ideas to make things better. That’s hard to do, so I tip my hat to you, sir!
Oh, and yes – of course money managers can do all this for you guys too, but I’d recommend starting with a money coach first just to get a better grasp of everything and see if there’s a way to avoid passing it all off or not. You can always go back and try out a daily money manager if you need to.
Hope this helps… bet you didn’t see this long a$$ response coming :)
What other ideas could we tell our friend here? Anyone else struggling with the same? Anyone ever use a Daily Money Manager before?
PS: Here’s a handful of my friends who are money coaches if anyone is looking for one (I no longer do it): pfdirectory.org/money-coaches, as well as daily money managers: pfdirectory.org/daily-money-managers. I’ll have a new post coming out soon on this directory, but it’s pretty much a place where I’ve listed a bunch of blogging and financial services people in our community offer as I got tired of everything being so spread out everywhere ;) Hope it helps!
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!