Improve your finances and save money with AI
Improve your finances and save money with AI
Tracking your finances with AI tools and planning a monthly budget with ChatGPT
Should I trust AI with my money?
Why not? Just choose the means to do so responsibly.
With tech development, using AI for personal finances is common.
AI-driven tools analyze spending habits, predict expenses, and offer advice on financial decisions.
AI has changed the way I manage money.
At any time, I can get real-time tips on finances from chatbots and use specialized algorithms to overview my spending.
Of course, the issue of data security and privacy is still valid.
That is why I wisely choose trusted platforms and then enjoy the opportunities they provide.
How to use AI to manage and save your money?
AI tools are now capable of automatically managing your finances.
Furthermore, they can help you save money over time.
Here are a few key features of AI tools that I find important for budgeting:
Automated expense tracking: AI categorizes your expenses and analyzes your transactions, making it easier to see which areas need to be cut back.
Savings recommendations: AI tools suggest ways to save more money and highlight unnecessary costs. You can set personalized saving goals based on your income.
Debt repayment: if you have any financial obligations, AI can help you plan how to pay off your debts regularly.
Investment tips: some AI tools help you create investment portfolios based on your income and expenses, and calculate the risk of possible financial commitments.
3 best AI tools for managing your finances
Wally
https://play.google.com/store/apps/details?id=me.wally&hl=en&pli=1
Wally lets you track your income and expenses in real time. You can ask it any questions about your finances and get detailed insights right away. Wally gives tips on possible investments based on your goals. A cool feature is that it notifies you to pay bills before they are due, so you never miss a deadline.
The tool is free, with a $8.99 per month option for Wally Gold membership.
Trim
https://www.asktrim.com/
Trim is an AI-powered financial assistant that helps you cut down on unnecessary expenses. It analyzes your spending habits and subscriptions to find possible ways to save money. Trim can negotiate bills, cancel subscriptions you don't use, and move money to higher-interest accounts automatically.
You can use most of Trim's features without any cost. However, If you decide on Bill Negotiation option, the app will charge you you 15% of the total savings in the first year.
Cleo
Cleo’s chatbot answers basic questions about your finances, such as 'How much should I save for a vacation this year?' The tool automatically calculates how much you can save each week and sets it aside for you. You can even set up savings 'fines,' where the app moves a set amount, like $5, into savings whenever you spend money on certain unnecessary items
A subscription to Cleo costs $9.99 a month.
Can ChatGPT provide a real-time financial advise?
Easily. You can ask it for any financial advise or even try to form some financial plans with it.
Let’s try it with a simple monthly budget management, including some of the basic expenses, debt repayment and some financial goals.
Ready to copy paste prompt:
Provide a financial plan for someone earning (insert your income) per year.
My monthly expenses include:
(Here list a few fixed monthly expenses. For categories where exact amounts are uncertain, just provide the name of the are, Chat will estimate automatically.)
My debts are:
(Here list your debts and specify the timeframe for paying them off.)
My saving goals are:
(Here outline some main saving goals. If you don’t have a specific amount of money needed for certain goals, ask Chat to estimate it)
Here is what I write:
Provide a financial plan for someone earning 120k per year.
My monthly expenses include:
Flat rent: 4k Food Gas
My debts are:
2.5k on the credit card and I want to pay it off within a year time
My saving goals are:
summer holidays in Greece ski trip to Austria
estimate the cost of my saving goals
And I get:
To create a comprehensive financial plan based on your income, expenses, debts, and savings goals, let's break down each component step-by-step.
Income:
Annual Income: 120,000
Monthly Expenses:
Flat Rent: 4,000 Food: Estimate your monthly food expenses. Let's assume 1,500 per month. Gas/Transportation: Estimate your monthly transportation expenses. Let's assume 500 per month.
Total Monthly Expenses:
Rent: 4,000 Food: 1,500 Gas: 500 Total Monthly Expenses: 6,000
Debt:
Credit Card Debt: 2,500 (to be paid off within a year)
Savings Goals:
Now, let's estimate the cost of your savings goals:
Summer Holidays in Greece: Estimate the total cost of the trip, including flights, accommodation, food, activities, and any other expenses. A rough estimate could range from 5,000 to 10,000 USD depending on your preferences and duration of stay. Ski Trip to Austria: Estimate the total cost similarly, including flights, accommodation, ski passes, equipment rental, food, and other expenses. This could also range from 3,000 to 7,000 USD depending on the specifics of your trip.
Financial Plan:
Budgeting:
Calculate your monthly disposable income after deducting your monthly expenses: Monthly income after taxes and deductions: Approximately 10,000 (120,000 / 12) Monthly expenses: 6,000 (Rent, Food, Gas) This leaves you with 4,000 per month for savings, debt repayment, and other discretionary spending.
Debt Repayment:
Allocate a portion of your remaining income towards paying off your credit card debt. To pay off 2,500 in 12 months, you need to allocate approximately 210 per month towards debt repayment.
Emergency Fund:
Start building an emergency fund once your credit card debt is paid off. Aim for 3-6 months' worth of expenses as a safety net.
Saving for Goals:
Estimate the total cost of each trip (Greece and Austria) and divide it by the number of months until your planned departure. For example: If Greece trip costs 8,000 and you plan to go in 12 months: Save approximately 667 per month. If Austria trip costs 5,000 and you plan to go in 9 months: Save approximately 556 per month.
Additional Savings:
After covering debt repayment and trip savings, allocate additional funds towards long-term savings goals such as retirement or investments.
Investments:
Consider investing a portion of your savings in diversified assets like stocks, bonds, or retirement accounts to grow your wealth over time.
Example Monthly Plan:
Income: 10,000 Expenses: Rent: 4,000 Food: 1,500 Gas: 500 Debt repayment: 210 (to pay off credit card debt) Savings for Greece trip: 667 Savings for Austria trip: 556
Adjustments:
Monitor your actual expenses closely and adjust your budget as necessary. Take advantage of any opportunities for increasing your income, such as bonuses or salary increases. Review and update your financial plan regularly to ensure you stay on track with your goals and adapt to any changes in your financial situation.
By following this structured financial plan, you should be able to effectively manage your expenses, pay off your debt, save for your trips, and build towards your long-term financial security and goals. Adjust the savings goals and debt repayment timeline based on your actual expenses and any changes in income.
Conclusions
To sum up, leveraging AI for personal finance management offers numerous advantages.
You can automatically track your expenses, receive tailored savings recommendations, and gain investment insights.
This approach ensures that your financial decisions are more efficient and effective.
Remember to choose reputable platforms to responsibly enjoy the benefits of AI-driven financial tools.
Start managing your money better and work towards achieving your financial goals starting today!
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