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What is a Daily Money Manager?

Malcolm Tatum
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum

Also known as a DMM, a daily money manager is a financial professional who takes over the day-to-day finances of a client, and ensures that his or her personal monetary affairs are kept in order. A service of this type is ideal for anyone who needs assistance in maintaining accurate financial records and managing tasks such as check writing, bill paying, and other basics. The DMM can also work with the client to create budgets, set financial goals, and in general help with any type of day-to-day financial decisions.

For some people, hiring a daily money manager is a convenience. Freed from having to deal with making the mortgage payment and submitting credit card payments, the client can focus on other activities, such as work or investing. Since the money manager is handling tasks such as depositing paychecks, paying bills, and dealing with any insurance or other papers that must be filed, the client can rest assured that essential tasks are completed on time and without any type of delay.

Man climbing a rope
Man climbing a rope

There are situations in which a daily money manager is a practical way of managing the affairs of someone who is not able to manage them on his or her own. Some managers specialize in working with disabled or elderly clients who often find it hard to keep up with the day-to-day management of bank accounts, setting up schedules to pay bills, and working with insurance companies. In this scenario, the daily money manager alleviates a great deal of stress for both the client and anyone who is functioning as a caregiver to that client.

The exact role of the daily money manager may vary somewhat from one situation to another. In situations where the client is attempting to organize financial affairs that are in a state of disarray, the manager may begin by organizing financial documents, assessing the amount of assets and liabilities currently held by the client, and helping to create a workable household budget. From there, the manager can take over the tasks of paying bills according to the structure of the budget. Depending on the degree of trust involved, the client may authorize the DMM to write and sign checks for this task; in other situations, the manager prepares the checks, presents them for the signature of the client, then places the checks in the mail. In like manner, the manager may be granted online banking access to the client’s accounts, making it possible to submit electronic payments for various monthly obligations.

It is important to note that the role of a daily money manager is not to replace other financial professionals. Even if someone hires a daily money manager, they will still benefit from having an accountant to manage their overall financial picture, or a broker to help with the investment portfolio. The daily money manager is primarily concerned with what financial tasks must be completed in the short-term, while these other professionals are more concerned with the financial well-being of the client over the long-term.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including WiseGEEK, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Learn more...
Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including WiseGEEK, and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Learn more...

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      Man climbing a rope