Managing personal finances can be overwhelming, and knowing when to ask for help is not always easy. Dave Nellis with America First Credit Union shared some key indicators to help people determine whether they can handle their money on their own — or whether it may be time to bring in a professional.
Not everyone grows up with the financial education, tools, or skills needed to manage money effectively. Nellis said recognizing where you stand is the first step.
Signs you may be able to manage your finances on your own:
- You check in on your finances regularly, including logging into online or mobile banking
- You can stick to a basic budget
- Your debts feel manageable and your bills are paid on time
- Your finances are simple and you don't feel anxious looking at your bank account
- You have a savings account with available funds and an emergency fund
Free budgeting apps, as well as computer programs like Excel or Google Sheets, can also help people manage their money independently.
Nellis said having a savings cushion is a key confidence builder.
"What builds confidence is knowing that you have a savings nest egg right there that you can then pay some bills if you get into trouble," Nellis said.
Signs you may want to consider working with a money manager:
- You have tried budgeting but are unable to stick with it
- Your debts feel unmanageable and you are behind on payments
- Collection notices are avoided and go untouched
- You feel overwhelmed or avoid looking at your finances altogether
- Your debt-to-income ratio is out of balance and your finances feel complex
Nellis said a debt-to-income ratio in the range of 43 to 45% is a strong signal that outside help may be needed.
"That's when I really think that you need to maybe invest in someone who can help you with your managing your finances," Nellis said.
I noted that the mental and emotional weight of financial struggles can make it hard to reach out — but Nellis said that should not be a barrier.
"Having a third-party independent voice whose main concern is just helping you is wise to do," Nellis said.
For those worried about the cost of financial counseling, Nellis said free options are available. America First Credit Union offers free financial counseling to its members, and nonprofit organizations also provide similar services at no cost. Becoming a member of America First is easy, and many counseling appointments can be scheduled online.
Nellis said people should come prepared when meeting with a financial counselor.
"Collect all that information. Know exactly where your money is going out so you can then look to see how can I reduce some of those expenses," Nellis said.
That means gathering bills, letters, bank statements, and any subscription or recurring expenses — even ones that are easy to forget.
Nellis said recovery from serious financial trouble can take time, but starting sooner rather than later makes a difference.
"It might even be a 3 to 5 year plan if you've got yourself into a lot of trouble, but the sooner you start, you know, those little wins equal big gains," Nellis said.
To learn more or to schedule a free financial counseling appointment, visit America First Credit Union online or stop by one of their locations.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
