A new and up-and-coming personal service is that of a Daily Money Manager, or DMM. A Daily Money Manager is a person who provides personal assistance to individuals who have difficulty managing their personal monetary affairs. The services vary from organizing and keeping track of financial papers to assisting with writing checks and maintaining bank accounts.
Many factors contribute to the need of a DMM. A DMM could serve the needs of the elderly, individuals for whom careers make it difficult to find time to maintain financial paperwork, or individuals who have a difficult time keeping up with their finances. It could also be the traveler who is away on business or pleasure for lengthy periods of time.
Keep in mind the that DMM does not take the place of professionals in the accounting or investment fields; rather they help to maintain day to day tasks and records which make the compilation of information for the preparation of tax returns more manageable. The DMM carries out the mundane financial tasks on a daily basis so that the client no longer has to. In addition to paying the bills, the DMM may perform other functions, such as making sure that estimated tax payments are sent on a timely basis to the taxing authorities, that tax returns are mailed on time and always making sure that there is enough money in the checking account! Since organization is the key to maintaining/managing financial documents, the DMM may easily set up a financial organization system for the client.
If you are thinking about retaining a DMM for you or a family member, the first step is to sit down with the DMM and discuss the various options. Be sure to spell out what is expected of the DMM, for example, are the bills going to go directly to the DMM or is the DMM responsible for coming to your premises to write the checks and pay the bills? At first, you may just want the DMM to check your checking account against the bank statement by simply performing monthly bank reconciliation. This may help you to feel more comfortable at the beginning. You may be as involved in the process as you want.
Fees for a Daily Money Manager may vary per hour, depending on the geographic area and what the tasks are. Hourly rates may vary from $35.00 to $100.00 per hour.
You may ask, how do I find a Daily Money Manager? A referral from your tax advisor or accountant is always a good place to start. You may also visit the website of the American Association of Daily Money Managers, where you may find a list of money managers by state. Be sure to ask if the DMM you are considering is insured, and if he or she is willing to work with your lawyer or accountant on your behalf. Ask for references from individuals who have used these services before, and check the references. Ask if the DMM offers a free consultation, as this will give you an opportunity to meet face to face and ask questions. Go with your instincts to see if you like and trust the individual.
You may think that the involvement of an outsider in your personal financial affairs may be something that you would never consider, but most clients of DMMs find that once a relationship has been established that they don’t know how they ever survived without one.
