Using AI To Save Money: 5 Reasons It’s a Good Move

Shanghai,China-May 19th 2023: close up ChatGPT official app icon on screen.
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While most of us know about budgeting methods and spreadsheets, it’s not always a realistic way to budget. Despite tracking your finances, it’s easy to forget about an expense you must pay or wonder whether you’re doing a good enough job.

About 15% of respondents in a new GOBankingRates survey use artificial intelligence (AI) to help get their money on track. An additional 11% are utilizing AI to invest.

Besides individual users, major financial institutions are also finding ways through AI for an optimal customer experience, including credit checks and APY rates. Personal finance is personal and AI can help. 

An Instant Budget Is Created for You 

When setting up an AI app, you can document your bills and allocate how much money you’d like to put toward your spending categories. You also can set financial goals for automatic transfers into a savings account.

AI also can customize your spending plan based on your previous income and spending habits. This can help you create a budget if it’s your first time or other methods haven’t panned out. 

Where Your Money Is Going Is No Longer a Mystery

Personal finance journalist Moriah Joy Chace has taken full advantage of AI to help with her finances. Her AI app has enabled her to stay on top of her spending.

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Chace previously spent hours writing out her financial transactions, but found she still needed to track incidental purchases she would make.

“My app tracks everything to let me know my weekly spending updates and tracks spontaneous purchases in real time,” she said. “This helps me return items I don’t need to keep more money in my checking account.”

She also has found a new use for those endless hours previously spent taking sewing classes. 

You’ll Know Immediately Whether You Should Make a Purchase 

AI tools not only track your spending, but they also track your income. One of the critical steps to budgeting is knowing where your money is going (your expenses) and where your money is coming from (your income).

It’s easy to overspend without comparing the two because you can think you have more money coming in than you do. AI can help you account for your income to let you know whether you should go on that outing with your friends. 

Feedback Is in Real Time 

One of AI’s powers when managing your money is encouraging you to make wiser financial choices without complicating it. Besides creating a custom budget, AI will alert you when you have overspent and can provide insights as to why.

For example, if one store pops up repeatedly, AI can point this out with suggestions on adjusting your spending. It can also remind you of subscriptions and other expenses you might not need to help you save even more.

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AI also can provide you with an alert if there are suspected fraudulent activities. 

Investing Isn’t a Mystery

As mentioned above, 11% of survey respondents now use AI to help them invest in the future. AI investing apps allow you to create a tailored investment strategy, whether you’re a seasoned investor or a beginner, with robo-advisors’ help.

Personal questions such as your age, years until retirement, the amount to invest and your risk level are all factors AI can use to help you utilize suitable investment vehicles for your future self, along with how much of your portfolio to allocate to each one.

AI apps can share which stocks you should invest in, predict future trends and set up automatic transfers to aid you in becoming an investing maven. 

AI may be right if you’re having trouble managing your money and forgetting your bills.

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