When we want help to get physically fit and maybe loose some weight we hire a professional trainer , when we need help with organizing and cleaning our house we hire a professional cleaning service, and when we need some help with organizing and having a better understanding of how we are spending our money, where we can find some savings, and how we can budget our money better, a professional Daily Money Manager can help.
Daily money managers do everything most of us don’t enjoy doing or for some reasons can’t do, such as:
- Sorting mail
- Paying bills
- Making sure credit card statements and medical bills are accurate
- Developing budget and spending plans
- Keeping record of expenditures by category
- Setting up paper or digital financial file system and record keeping
- Keeping track of our income and expenses in financial soft wares like Quicken
- Organizing our financial records for your tax preparer or investment adviser
- Resolving credit disputes
- Looking out for fraudulent activities and scams
Daily money managers usually specialize in specific areas such as: working with busy families, young adults who like to learn ways of managing their finances, high net- worth individuals, small businesses or older adults. When looking for a money manager, it is best to find and hire a DMM who specializes in the area of your need.
When is it time to hire a daily money manager?
When you feel overwhelmed and frustrated by the details required and the time you are spending on keeping your day to day finances straight and organized. When you miss timely payment of your bills; when you feel your mind is not clear enough to keep up with this detailed and irksome work; when the thought of working on your finances is making you anxious; when your other life responsibilities increase, such as having to care for an ailing spouse; and when you realize that managing your daily finances is stealing time away from the enjoyable activities you like to be involved in.
If you have a trusted family member or friend who can help you with these tasks, you are among the lucky few, but often time adult children or trusted friends who can help have busy lives of their own or live far away. And for many, these trusted people just do not exist. A professional Daily Money Manager who is insured and bonded and is referred to you by people you trust is the best alternative to relieve you from the stresses of managing the details of your daily financial tasks.
Barriers to considering a professional Daily Money Manager
Most older adults are protective of their privacy and do not like to share personal information with others, including a professional that can help reduce their stresses and protect their interests.
Women who have not been managing their family finances while they were married or before they lost their husbands are embarrassed to let others, including a professional DMM, know that they are not savvy money managers and are not good at keeping records of their income and expenses, and managing a budget.
Older adults with mild or even advanced diminished cognitive abilities may not be ready to acknowledge their diminished capacities and insist on managing their financial tasks. This is when the adult children, trusted friends or caregivers should have a conversation with them about the need to allow someone to help them before a catastrophic and often irreversible financial event such as falling prey to a scam happens.
Many older adults tend to be frugal and do their best to not spend “unnecessary” money. They may believe that hiring a daily money manager costs a lot of money that they can avoid spending. DMMs cost between $75-$125 an hour. Most of the cost is incurred in the beginning when your records are being set up. Once a DMM sets up a system to keep track of your accounts, the work of maintaining and balancing your accounts, paying bills, and filing documents will require much less time and therefore, less cost. Older adults who use a DMM service believe it is a money well worth spending. They feel they have a trusted friend and confidant watching their back and brings them great peace of mind. They believe they have a greater sense of independence and much less worries knowing their bills are paid on time, their accounts and records are kept in good order, they have someone to consult with on their financial matters, and that they do not have to share their private financial information with anyone else.
Where to find a trustworthy Daily Money Manager?
This best place to start is your trusted network. Your Aging Life Care Manager, your estate lawyer, your financial planner, or your accountant/tax preparer. You may also contact the Larimer County Office on Aging, 970-498-7750- LCOA.networkofcare.org, or go to Daily Money Managers professional website, AADMM.com and search for DMMs in your preferred zip code. Check the referred DMMs website to find out about their background and training and the services they offer. Take advantage of the free initial consultation they may offer, and interview the referred DMM to make sure you feel comfortable and can build a comfortable professional relationship with this person.
This may be one of the most important steps you are taking toward becoming more independent and less stressed.