Do You Need a Gatekeeper for Your Personal Finances?
January 12, 2009 by Miranda Marquit
Filed under Finance
One of the more interesting developments from last week was that president-elect Barack Obama appointed a “chief performance officer” to monitor government spending. It sounds like the government is about to get a gatekeeper of sorts when it comes to spending our hard-earned taxpayer dollars. And this isn’t a bad thing — provided the office has the ability to limit wasteful spending and help direct money to where it will do the most good. Our government has needed a gatekeeper for a looooong time.
This, of course, has application in personal finances as well. Some of us have need of a gatekeeper for our personal finances. In business, a gatekeeper is defined as a decision-making unit that limits purchasing by controlling access to funds. The concept can work in personal finances. One example of a sort-of gatekeeper arrangement between life partners might be an agreement to consult together before making purchases that cost more than $100 (or $50 or $500 or whatever you think is reasonable for your situation). Or, you can use a financial planner or some other agent to help control access to your money in order to limit your spending. In some cases, a gatekeeper acts in the more official, court-appointed role of conservator.
No matter how it is set up, though, the function is the same. It is to encourage you to think about how you are spending your money, and determine whether it is something you need — or are willing — to pay for. A gatekeeper forces you to really consider your purchases. In same cases, if you feel helpless to curb your spending — or even if you just need a little help to prevent splurging, a gatekeeper can be of tremendous benefit. My husband and I have an agreement not to spend more than $100 without consulting each other. It has worked well in our personal finances.
What are your thoughts? Do you have some sort of gatekeeper system for your personal finances?
Image source: Arpingstone on WikiMedia Commons
I think my biggest gatekeeper is my interest on my credit card. 14%! That is why I try to keep within budget on most of my purchases.
You make an excellent point. When you think of how much it costs to pay for things with credit (and I don’t count it as credit if you pay off the account each month without paying interest), it can be very effective at curbing your spending.
Good afternoon Miranda!
I think that a gatekeeper is a great idea if you are unable to control your own expenses. It’s easy to persuade yourself in the wrong direction. A good, unbiased third party individual would make for the best gatekeeper in my opinion.
I agree that if you have a hard time controlling spending, having someone to tell you “no” is a good idea. Of course, one has to admit to a problem first…
Interesting. I’m trying to teach my kids these concepts. The other day my daughter fell in love with a puppet at a local boutique. She asked if we could go home and get her money so she could buy it. (She’s already well trained!) I told her I’d be happy to take her back to the store the next day – after she had time to sleep on it. Often, we want something NOW, but we’ll forget about it by tomorrow if we give ourselves a chance!
Excellent point, Lela. Sometimes the best gatekeeper is a good night’s sleep!
haha, I’m usually the gatekeeper for other people. I run a tight ship when it comes to spending and staying on budget.
Being an accountant, I’m usually the gatekeeper on other people’s finances.
One thing I no do, is leave my credit card at home.
Great tip, TStrump! We leave our credit home most of the time as well. I take one on trips, for just in case situations.