Why You Should Hire a Family Money Manager

Family Money Manager

Too often we do our best work for others.

When we get home, we often have nothing more than leftovers to offer our household . . . leftover energy, leftover focus, leftover intentionality, leftover effort.

The solution?  “Hire” a Family Money Manager (FMM)!  No, don’t look in the Yellow Pages.  Look internally.  Hire someone from within.  Hire yourself or your spouse!

While working for others is profitable, you can also save a substantial amount of money by hiring yourself or your spouse to manage your family finances.  Instead of spending all your best energy earning money, it’s valuable to have a member of the family dedicate some intentional energy to focus on saving money at home.

What if you were hired to do the things you do at home?  I suspect with that extra level of accountability you’d probably give attention to those financial items you’ve been neglecting.

I’m not suggesting you actually pay your spouse to handle the finances (or yourself for that matter), but instead that you allow time for the finances to be managed.

It’s time to change the pattern of working harder for others than we work for ourselves.

8 Reasons to Hire a Family Money Manager

1. It will take your focus to another level.

Lots of mothers call themselves stay-at-home moms or homemakers when they are also the Chief Financial Officers of the home.  If you formally convince yourself that your job is to economize and maximize your household expenditures, you’ll start seeing the savings right away.

2. You’ll find new ways to save money.

If your boss asked you to cut 5% from your expense account, you’d find a way to do it.  What if you, in your new role as the Family Money Manager, decided to cut household spending by 5%? I bet you’d figure out a way to do it, too.  Be your own boss and challenge yourself!

3. You now have reasons to budget.

As a business owner, I know that someone (the IRS) is going to be watching over my shoulder.  The IRS always wants to know how much I made and where that money went.  Yet, most households don’t have anyone watching over their shoulders, and as a result, the budgeting fades out of the picture.

We give priority to the accountability of the boss or the accountability of the government.  Since no one is holding us accountable to keep the books, we skip it.  But since you would expect an employee to track spending, you should start to expect that of yourself.

4. You’ll see the tremendous value in your per hour savings.

If you were able to cut 5% out of your budget after an hour or two of work, then you could easily save $100-$200 per month.  Did you know that how much money you save at home can be as big of a contribution as how much money is made?  By seeking to live on less, we introduce financial peace to our homes.

5. You can recognize the team effort required.

The bottom line is what’s most important for many companies.  Both members of a household would be blessed if forced to look at the bottom line.  If we’re spending less than we earn, that’s a financial victory.  In order to do that, we need income, and we also need a Family Money Manager to help keep our spending below the earning line.

Many of us believe that healthy finances are exclusively based on income.  There are a lot of people who have big paychecks yet are still in debt because they have no Family Money Manager.  In fact, there are a lot of families with smaller or limited incomes that seem to thrive because they’ve taken seriously the role of managing their finances.

6. You’ll avoid those dumb mistakes.

I doubt you’d keep your job working for someone else if you constantly didn’t turn in projects on time.  Think about your oversight and management of your bills.  Do you pay those on time?  Do you neglect to give due diligence for setting up your payments?  Be structured and professional with your bills, and don’t miss payments just because you weren’t paying attention.

7. You can allocate spending accounts.

How much does mommy get?  How much does daddy get?  How much does junior get?  If you treat your finances like a company that wants to be profitable, you’ll put spending restrictions on certain departments.  The money manger in the home knows where the family money is going and helps to judge the reasonableness of each expenditure.

8. Family Money Managers know how much is owed and to whom it is owed.

Don’t believe the myth that spreadsheets are just for businesses.  Make sure that you professionally organize and arrange your debts and debt repayment plan in such a way that a boss would give his approval.

With a little focus and an intentional approach to your family finances, I suspect that you’ll quickly start discovering money that you never knew you had.   Working as a Family Money Manager is a job that doesn’t pay anything, but the household savings might just feel like you’ve got another paycheck coming in.

Do you have a Family Money Manager?  How has that impacted your household finances?

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  1. JP

    Craig – I love this post. Here’s why:

    So many people fall short in managing their finances. After a few good months or couple years things get missed. I know I’ve been in this situation.

    Adopting new strategies that leverage social pressure and consistent monthly checkins is awesome.

    Bringing in a ‘team’ mentality is dead on. I have been in environments where money was a secret. Budgets and income were never discussed openly. It only lead to distrust and fallout.

    Any ideas on what you should do if your single and don’t have some of the social dynamics your describe above?

  2. Angelina

    And I wonder if we have these in Canada and where we would find them…

  3. Christine

    Yes! This works, it really does! After much money lost by not saving/spending/knowing where it was, I got smart and started treating it like a job. I make a modest income and have managed to find an extra 10K a year!!! It was money that was going to paying off credit card debt, to late payment fees, to a car payment… I have performed a number of tasks like switching car insurance (saved $285 per year), putting all bills on auto push pay (always have a NO FEE account that shows you what is going to be deducted for the next 30 or more days), signing up for flex spending at work, finally contributing to my 401K… I never thought I’d be able to save ANY money. Now I have a little in savings and growing (goal is 3-6 months of income in case of emergency), money going toward my retirement and plenty left to pay off debt in a much greater amount than I owe per month in debt (house…). You can do it too! There is much information on this site that can help you like it did me!