4 Ways You Can Leverage ChatGPT To Improve Your Finances
Written by
Nicholas Morine
Edited by
Jenna Klaverweiden
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As ChatGPT grows more sophisticated by the day, so do the practical use cases for the artificial intelligence (AI) model when it comes to solving everyday problems — particularly concerns related to personal finance.
So what can ChatGPT help you with when it comes to improving your financial health? From helping you craft a rock-solid budget to making sure you place your money in wise investments, AI tools have never been more valuable.
ChatGPT Prompts Can Help You Create a Better Budget Plan
According to Forbes, generative AI can be useful in helping you draw up an effective budget.
Recommendations attached to the prompt Forbes recommended include making sure to identify and specify spending areas related to housing, groceries, transportation, etc.; providing tips on slashing expenses and optimizing spending in each area; producing a goal savings target on a per-month basis to achieve an annual savings nest egg; suggesting other tools, apps or platforms to track spending and income; and offering advice on handling any unexpected expenses that could show up.
Financial experts frequently underscore the importance of having a sensible budget in place as the bedrock of fiscal health. That advice has proven timeless, so take advantage of every opportunity to create one, or strengthen your existing example.
Use ChatGPT as One Voice Among Many To Produce Investment Options (Due Diligence Required)
And while Forbes was also quick to point out that ChatGPT shouldn’t be relied upon as a source of unassailable investment advice — after all, the model retains a substantial capacity for error — its recommendations can nonetheless be taken as a worthwhile starting point from which to conduct your own guided research.
Forbes suggested asking ChatGPT for “a list of accessible, beginner-friendly investment options that I can consider and conduct due diligence on, with a focus on building wealth gradually before the end of the year.” It advised asking the AI to explain each option, as well as how much money is needed to utilize these strategies and any potential risks.
However, it’s vital to keep one thing in mind: Due diligence on your part remains necessary to avoid potential money pitfalls.
Bringing a list of ChatGPT-provided investments to a credible and ideally accredited financial advisor can spur discussion, debate and a deeper examination into potential places to park your hard-earned cash to reap the greatest reward.
Condense and Analyze Financial Articles for Easier Reading
Don’t have time to read a few dozen lengthy financial articles in order to get a picture of what’s happening in the spheres of personal finance, business news and investment opportunities?
No problem. ChatGPT is quite capable of scouring any number of reputable sources fed to it in order to provide concise and readable analysis. You could save hours of valuable time by allowing ChatGPT to handle the heavy lifting when it comes to breaking down concepts, news pieces and earnings calls, per DataCamp.
Just be sure to double-check questionable conclusions and spot-check sources periodically to ensure the model isn’t hallucinating or pulling facts from thin air.
Translate Financial Jargon Into Plain English To Enhance Your Own Vocabulary
Related to the above point, sometimes blog entries, news articles or financial reports can be laden with insider terminology that proves difficult to grasp.
A quick ask to ChatGPT can end with fruitful results, whether one wants to know exactly what’s meant by terms ranging from earnings before interest, taxes, depreciation and amortization (EBITDA) to return on investment (ROI), or from capital appreciation to liquidity.
Improving your own vocabulary when it comes to the challenging financial lexicon gives you the tools to engage with educational materials on your terms — making you better-equipped to make wiser decisions when it comes to your pocketbook in the long run.
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