10 Reasons You Should Hire a Family Cash Manager
Dr. Peter Robbins
Did you know you’re a delegator? Yes, that’s right. You delegate many things for many reasons. Who mows your lawn? Who cuts your hair? Who washes your car? Who fixes your plumbing? Repairs your vehicles? What about your broken bones? Who helps you with debilitating emotions or relationships? How about your taxes? Who do you go to for your mortgage needs? This list can get very long. It’s been said, “If it weren't for problems, we’d all be out of work.” Do people delegate to you? I bet they do.
10 Reasons Why Delegating Your Family Financial Management Makes Sense
1. Paying your bills and managing your cash is not in your skill set.
Most of us have not been trained in money management. Have you ever taken a class in high school or college about money management? Unless that was your major, most likely you didn’t. If you did, it was probably one class many years ago. Often both husband and wife aren’t equipped to handle the family finances and so the “hot potato” game of managing finances begins. “Here you do it. I’m tired of doing it.” You know it needs to be done and you wouldn’t mind doing it if only you knew how.
2. You just don’t like managing money.
One of our members at Turning Point Stewardship is an accountant. Her reason for enrolling in our program was, “I do this all week long for other people and the last thing I want to do is pay my own bills or handle my finances.” She’s certainly capable of doing it but she just doesn’t want to.
Another member, who’s a financial advisor, told me, “I just don’t want to have the conversation with my spouse each month.” Most of us are aware that money problems are the number one cause of divorce and “having the talk” can be stressful. If there’s tension in the relationship because of finances there’s no need to let this erode your marriage. It’s time to consider delegating this task. If you’re not managing your money…who is?
3. You’ve taken the Dave Ramsey or Crown Financial Ministry courses and you’re still not doing it.
For years we Christians have been ignorant about money management. No one ever taught us about money nor did the Church. Then came Larry Burkett, Crown Financial Ministries, and Dave Ramsey’s Financial Peace University. They’ve done an excellent job of raising the bar on our understanding of managing our money. But they leave you with the admonition to Just do it! Knowledge is no longer the issue, its implementation. We mean well. Our hearts are in the right place, but as Peter Drucker, the father of non-profit management, says Vision without execution is delusion.
We have many Crown and Ramsey graduates in our program. They knew the task had to get done and they knew that it wasn’t. So they took responsible action and delegated this task. It was no longer good enough to just get by.
4. You can’t manage your cash consistently.
Many do a decent job of money management…but life gets in the way. If it’s not one thing, it’s another! The problem with money management is that it demands to be done consistently, each and every month. If there’s a change in your income or spending the budget needs to be updated. If it’s not updated, it becomes irrelevant. Most of us have good intentions, but with the many demands of work, marriage, and parenting, we don’t have much left to fight the good fight with the ever changing landscape of money management.
5. So you can begin using a budget consistently.
Creating a budget is Home Finance 101. It’s your starting place for any chance of getting your arms around your finances. Many have created a budget only to forget where they put it.
There are two major challenges with budgets. First, you have to constantly keep it current. Any change to your income or expenses must be reflected on your budget. If you miss this, your budget becomes obsolete. The second challenge is that most budgets are not comprehensive enough. They don’t really allow a functional way to account for your periodic bills. It’s this area that becomes, for most, a financial crisis. Oh my gosh, the ___________ is due! The DMV bill, property taxes, auto insurance, Christmas, homeowners insurance, or time-share maintenance fee can all become a financial crisis.
6. So you can stop playing the “money game” with your spouse.
Most of us have trouble telling ourselves “no”. I want what I want when I want it is what swims in the back of our minds. Our entire nation struggles with this. Or, we may have trouble telling someone else “no”. Some are very frugal when it comes to spending money on themselves, but don’t want to disappoint their loved ones by denying their requests. Can you trust yourself to stay within your budget…to spend less than you make…even if it may hurt someone’s feelings?
Sometimes we cheat ourselves. The scenario goes like this: one spouse has volunteered to take care of the finances. The other spouse abdicates this responsibility with little to no accountability. This sets up the managing spouse to be a bit more “loose” with the funds, favoring themselves a bit more than they should. The result: mismanaged funds, guilt, hiding, discovery, the blow up, and more. If you “cheat” your spouse, you’re also cheating yourself and your financial future. TPS provides the cure to financial infidelity.
7. So you can alleviate financial crises.
Hiring a Family Cash Manager makes sure that you have a solid financial foundation by establishing a positive cash flow budget (what TPS calls your Cash Management Plan, or CMP) that incorporates your monthly bills, monthly personal spending, and your every-so-often bills. Once this type of management is established, this foundation is maintained each and every month. When changes occur, your cash manager will update your CMP. At any given time, your CMP will let you know where you stand with your finances. Thus alleviating the vast majority of financial crises.
Not having a budget is much like driving your car without a gas gauge. If you’ve ever done this you know how nerve wracking it can be. Before long, you’ll find yourself on the side of the road waiting for a tow truck.
Ask yourself this question: Do you have a positive cash flow? If so, do you know how much? If you don’t know or you’re not sure, your financial gas gauge is broken. Don’t end up on the side of the road waiting for a tow truck.
8. So you can achieve your financial goals. This is our objective for each and every member.
Obtaining a solid financial position is not enough. You have goals; financial goals that requires planning. Most goals involve money. The question that becomes essential is How much…by when?
If you’ve ever been in a shopping mall and wanted to find a particular store, the first thing you need is to find that red dot on the map: You are here. Without knowing where you’re at with your finances, it becomes very challenging to achieve any new financial goals. Having a clear Cash Management Plan is your financial RED DOT. Once you have a working CMP, you can begin answering the How much? By when? questions and achieve your financial goals.
9. So you can have financial peace of mind.
Very few folks are gifted in the area of financial management and experience financial peace. Most of us are challenged in this area and feel anxious about money. This anxiety can erode your life and your relationships.
If you happen to be rich and famous and challenged in this area, no problem. You just hire yourself an account or CPA (at $250 to $450 an hour) and get the job done. The rest of us are out of luck…until now. Turning Point Stewardship has made hiring a Family Cash Manager affordable. Because of technology and automation, TPS strives to help you achieve the financial peace you’re seeking in your life and in your relationships.
10. It’s an excellent demonstration of Biblical Stewardship.
This might be the most important reason: Biblical Stewardship. Scripture tells us Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master's happiness!' (Matt. 25:21). We all want to be happy but one of the fastest joy killers is money pressures.
How can we be faithful in our finances when it’s not in our area of giftedness or we just don’t like doing it? You’ve taken the courses but you just can’t pull it off?
Let’s define stewardship…what does it mean and what it doesn’t mean. Stewardship means that you make sure something gets done consistently. Stewardship doesn’t mean YOU have to do it. Being a good steward means that you use your giftedness to get things done faithfully. Sometimes it means you recognize your limitation while still seeing the need for the job to get done…so you delegate…responsibly. Delegating doesn’t mean abdicating. It means overseeing those that are doing the work for you. By being a good steward you reclaim your happiness and are put in charge of greater things.
Delegating your financial management is a relatively new concept for the family; just like it was 40 years ago when everyone mowed their own lawn. No one ever thought of having someone else mow their lawn for them. That’s what the rich and famous do and we’re not rich or famous. Now, many of us have gardeners. For some it’s not even a second thought.
Delegating your family’s financial management is finally a viable option. Isn’t it time you consider being a faithful steward by delegating this critical chore of financial management?
Dr. Peter Robbins, Founder of Turning Point Stewardship.
The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.