ChatGPT’s Top 5 Money Tips for 2024 — What Does an Expert Think?
Written by
Cynthia Measom
Edited by
Chris Cluff
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If you know anything about ChatGPT, you likely know that it can’t be fully trusted to dish out information with 100% accuracy. According to the Journal of Accountancy, ChatGPT sometimes gives the wrong answer to simple math problems and also struggles with more complex ones.
Additionally, it has a tendency to make factual errors and introduce false ideas seemingly out of nowhere. The reason for the inaccuracies and falsities is that ChatGPT may draw from iffy sources or inappropriately combine different texts.
But the AI chatbot can also get things right. To find out how well ChatGPT does when asked for money advice, GOBankingRates requested the top five money tips for 2024. For each tip it gave, Russell Rosario, a CPA and AI software engineer with over two decades in the financial sector, gave his opinion and offered supporting, real-life examples.
ChatGPT Tip: Diversify Investments
In 2024, consider diversifying your investment portfolio. Explore a mix of stocks, bonds, real estate and emerging assets like cryptocurrencies and green technologies. Diversification helps mitigate risks and can lead to more stable returns.
Expert’s Take
Rosario agreed with this advice. “Diversification is key to risk management,” he said. “For instance, while working with clients at Profit Leap, one business diversified its investments into stocks, bonds, real estate and emerging assets like green technologies. This approach hedged against market volatility and stabilized returns, even during economic downturns, ensuring robust financial health.”
ChatGPT Tip: Automate Savings and Investments
Automating your savings and investments ensures consistent contributions to your financial goals. Set up automatic transfers to savings accounts, retirement funds and investment accounts. This approach takes advantage of dollar-cost averaging and reduces the temptation to spend money impulsively.
Expert’s Take
Rosario said he strongly agrees with this AI tip.
“Automation ensures consistent financial growth,” he said. “At Profit Leap, we’ve implemented automated savings strategies for several clients. One client set up automatic transfers into a diverse investment portfolio, benefiting from dollar-cost averaging. This disciplined approach led to a 15% increase in their portfolio’s value over a year.”
ChatGPT Tip: Review and Adjust Your Budget
Regularly review and adjust your budget to reflect changes in your income, expenses and financial goals. Factor in inflation, new expenses or lifestyle changes. Keeping a flexible and realistic budget helps you stay on track and avoid unnecessary debt.
Expert’s Take
Rosario also agreed with this tip and said regular budget reviews are crucial.
“At Profit Leap, we conduct quarterly budget reviews for our clients to realign their spending with current financial goals and market conditions,” he explained. “This system helped one entrepreneur reduce unnecessary expenses by 10%, reallocating those funds to higher-priority areas, such as emergency savings and investment opportunities.”
ChatGPT Tip: Focus on Debt Reduction
Prioritize paying off high-interest debt, such as credit card balances and personal loans. Consider using methods like the avalanche (paying off the highest interest rate debt first) or the snowball (paying off the smallest balances first) to reduce debt efficiently. Lowering your debt can improve your credit score and free up more money for savings and investments.
Expert’s Take
“I fully support this advice,” Rosario said. “Prioritizing high-interest debt is essential for financial stability. I have advised many startups to focus on the avalanche method. One client’s aggressive repayment of high-interest loans improved their cash flow, allowing reinvestment into their business, ultimately raising their annual revenue by 18%.”
ChatGPT Tip: Stay Informed About Financial Trends
Keep yourself updated with the latest financial news and trends. Follow reliable financial blogs, podcasts and news sources. Understanding economic indicators, market movements and new financial products can help you make informed decisions and capitalize on new opportunities.
Expert’s Take
Rosario also agreed with staying updated on financial trends.
“Awareness of financial trends is vital for strategic decisions,” he said. “At Profit Leap, we leverage AI to analyze financial news and trends for our clients, providing real-time insights. One client utilized early data on AI-driven market shifts, optimizing their strategy and achieving a 20% growth in market share before competitors caught up.”
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