Ask ChatGPT These 3 Questions and It Will Help You Save for Any Financial Goal
ChatGPT has taken the world by storm in 2023, inspiring both excited praise about how artificial intelligence has all the answers, and terrified proclamations about how it will lead to doom. But as with most technology, the reality about ChatGPT lies somewhere in the middle.
Taken with a grain of salt — and some supplemental fact-checking — ChatGPT can provide some useful answers for important questions, especially in the area of personal finance. With the caveat that you should never rely on a single source of information to make important life decisions, here are some sample questions asked of ChatGPT regarding saving for financial goals, along with a brief analysis of what the AI gets right and wrong.
Question #1: How Can I Have One Million Dollars by Retirement?
ChatGPT can actually be quite useful if you’re looking for basic information that you can find from reliable sources on the internet. The AI compiles the relevant information in an easily readable format and can point you in the right direction in a general sense.
For example, if you ask ChatGPT how you can have $1 million by retirement, the basic steps it outlines are correct:
- Start saving early
- Create a budget
- Maximize retirement accounts
- Diversify your investments
- Take advantage of employer matches
- Keep expenses low
- Increase your income
- Avoid unnecessary debt
- Stay disciplined and consistent
- Continually educate yourself
It’s hard to dispute that all of these steps can help you save one million dollars by the time you retire. Financial advisors would no doubt add more specific details as to how you can tailor these steps and others to your personal financial situation. However, if you’re just getting started, these are all concepts that you should embrace.
Question #2: How Can I Become Financially Sound If I Tend To Overspend?
This is a question that a lot of Americans likely have, as many tend to outspend their incomes. But with just a bit of financial discipline, even a spendthrift can turn into a saver. ChatGPT’s 10 tips for doing so are as follows:
- Track your expenses
- Create a budget
- Prioritize needs over wants
- Set financial goals
- Use cash or debit instead of credit
- Practice delayed gratification
- Avoid temptation
- Find alternative activities
- Seek accountability and support
- Seek professional help if needed
Again, these basic steps are fundamentally sound, enough to gently push those who have gone a bit astray back onto the path of financial accountability.
For example, if you tend to overspend, tracking your expenses, prioritizing where you spend your money and setting financial goals are all solid methods to get your spending back in line. You’ll still need to figure out a way to implement all these steps, but the principles behind them are the same that you’re likely to hear from a financial advisor or credit counselor.
Question #3: How Do I Get Out of Credit Card Debt?
By some estimates, the average American household now has as much as $10,000 in credit card debt, with an average interest rate of about 24%, the highest since Ronald Reagan was president. As credit card debt is absolutely crippling to a long-term financial plan, getting out of it is the primary financial goal of many Americans. Here’s are the steps that ChatGPT recommends:
- Assess your debt
- Create a budget
- Prioritize your debts
- Negotiate lower interest rates
- Increase your income
- Cut expenses
- Make extra payments
- Consolidate or transfer balances
- Seek professional help if needed
- Stay motivated and focused
As with the other financial questions asked of ChatGPT, its answers regarding credit card debt are solid. There’s no denying that if you analyze, categorize and prioritize your debt, cut expenses, make extra payments and get lower interest rates that it will help you eliminate your credit card debt. The brief additional details ChatGPT provides, such as transferring your high-rate balances to 0% promotional rates, can also help.
In fact, you’re unlikely to get better advice regarding your credit cards even from a debt counselor, although your solutions may be more tailored to your personal financial situation. For the average American looking to get started at eliminating their debt, however, ChatGPT provides a great start.
The Bottom Line
ChatGPT’s answers don’t provide unique insights and are essentially just compilations of what you can find out yourself on the internet. However, this doesn’t mean that they aren’t without value.
By assembling readily available information in a concise, easy-to-read format, many Americans can get sound basic advice on a number of topics, including financial ones. Just remember that you shouldn’t base your financial decisions solely on the advice of an automated AI service. Do your own legwork, verify whatever answers you find and ensure that they make sense given your specific financial situation.
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