June 03, 2023

Read Time: 4 Minutes

In a world of rising inflation and gas prices, everyone from the business owner to the employee is feeling the pains of managing their finances.

According to a recent article by CNBC, 70% of Americans admit to struggling with their personal finances.

This week, I’m going to show you a few ways AI can help you better manage your finances, as well as, keep you better informed on money-making opportunities.

A few benefits of using AI:

• Saves time

• Personalized advice

• Summarizes market advice

• Identifies issues in your budget

• Provides you with a financial roadmap

Unfortunately... 99% of people are either using AI incorrectly or avoiding it altogether.

Start by fixing those problems “under the hood”

99% of people fail to leverage AI to help with their money management due to:

• Preconceived notions about how their parents valued money.

• Overwhelmed by the thought of managing their finances.

• Failure to educate themselves on money-saving tactics.

• Unwillingness to try something new/unfamiliar.

Oftentimes, we cannot help the scripts we were sold around money management while we were growing up and it’ll take intentional steps to fix them.

Good news, I’m going to show you how to streamline this with the help of AI.

So, let's dive in.

Formulate A Plan

The biggest mistake people make with trying to manage their finances is failing to have a plan.

As the saying goes, “Failing to plan, is planning to fail.”

The first application I recommend is Dave Ramsey’s EveryDollar application.

You’ll have access to:

• Offers both a free and paid version.

• Assign a “job” to every dollar you spend.

• Strictly focuses on budgeting rather than stocks or paying bills.

My second application that can help you formulate a plan is Intuit’s Mint app, which syncs all your different bank accounts, credit cards, and retirement accounts into one application to make tracking easier.

It also has a daily budget planner that can suggest budget goals based on your spending and will adjust as you use the app.

Begin To Educate Yourself

Lack of financial education is crucial for anyone trying to get a better grip on their finances. After all, people have been budgeting for generations! There are plenty of strategies out there you can use.

Now, researching and applying pre-set principles is where AI like ChatGPT, Bard, and Bing excel!

With the correct prompts, you can:

• Summarize hours of resources in an instant.

• Make sense of financial markets easily.

• Create and customize financial plans.

Here are 3 prompts that can help you do just that:

• Prompt for expert financial market advice

  • Seeking expert advice on financial markets, consider factors like inflation rate, return estimates, and tracking stock prices to help customers understand. Give suggestions for safe options available where the customer can allocate funds depending upon their requirements. Starting query - 'What currently is the best way to invest money short term?’

• Prompt for a custom financial plan

  • Act as my accountant and come up with creative ways to manage my finances. Consider budget, investment strategies, and risk management when creating my financial plan. Give advice on tax laws and regulations in order to help maximize my profits. My first suggestion request is 'Create a financial plan for a small business that focuses on [business description]'.

• Prompt for improved decision making

  • "I am trying to decide if I should [insert decision]. Give me a list of pros and cons that will help me decide why I should or shouldn't make this decision.”

Conclusion

Sure, AI may not be able to stop you from spending $7 for a coffee, but it sure can help you make necessary adjustments to your budget to account for it.

With AI, you can have access to a lifetime of financial advice, data, and resources in an instant.

TL;DR

1. AI can help you save hours on your budget.

2. You need to fix the underlying issues first.

3. Formulate a plan around your finances.

4. Begin to educate yourself with AI.

If you begin to use some of the resources mentioned, you’re sure to fast-track your way to getting those finances under control.

That’s it for this week.

See you next week.