The bad news is that ChatGPT may come to your job. The good news is that it will help you budget and save money in preparation for a generative AI takeover.
OpenAI chatbots won’t replace human financial advisors yet, but they can help just about anyone strategize and plan Spending and saving can be more organized and efficient.
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Here’s how to use ChatGPT to: create a personalized budget.
Get organized and face your money
ChatGPT can create detailed and personalized financial plans with incredible speed and accuracy. But only if you can calculate your financial life completely and accurately. No one can do the heavy lifting of tallying your debts, bills, and monthly fixed and variable costs for you.
Gather all the information you need for your first meeting with your financial professional before you begin.
The more detailed, thorough, and honest your input, the more reliable the results ChatGPT will provide. So take the time and endure the stress of first scrutinizing your household budget. Details determine success or failure.
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Once you’ve sorted out your income, expenses, and debt, simply enter them conversationally into ChatGPT along with a description of what you’d like to budget.
Forbes provides sample prompts. [whatever amount] pay every month [amount] in rent or mortgage [amount] in the invoice, [amount] in food, [amount] in the gas and i [amount] in debt. Plan your finances so you can save. ”
Analyze the results
ChatGPT gives you a detailed, personalized overview of how you can best allocate your money to cover your bills and debts, and how much of your leftover money should go towards emergency savings or retirement. return.
Now is the time to reconcile your results to real-world financial conditions and, most importantly, your goals so that you can continue to shape them with new inputs.
Tweaks and follow-ups
One of the things that makes ChatGPT so useful is the ability to recall previous inputs and incorporate them into follow-up queries. The more you refine your original input with more detailed instructions, the more specific ChatGPT’s response will be.
For example, based on the bot’s initial response, you can follow up with something like:
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“What if I want to save to buy a $40,000 car?”
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“Fix it to prioritize building your credit score.”
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“How do I incorporate annual bonuses and tax refunds?”
Fix your algorithm, fix it, trust yourself
Fortune staff writer Ivana Pino used her publication to document her experience using ChatGPT when budgeting for a $500,000 home purchase. She entered
ChatGPT immediately returned a list of priorities and the order in which to complete them, instructing Pino to:
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pay off her credit card
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pay off her student loans
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create an emergency fund
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reduce spending
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Save with a 20% down payment
Fortune asked human financial planners to create an outline using the same inputs, and their recommendations were very similar to the bot’s, but with a human touch that the algorithm lacked. .
For example, ChatGPT assumed it knew exactly how much money Pino was spending each month. It also didn’t take into account potential income changes, or interest rate spikes after 2021, when the data stopped updating.
Financial advisors agreed that ChatGPT is a powerful tool that is good at providing a general roadmap. However, users should consider the results of artificial intelligence as a good starting point, which should be modified and adjusted based on human intelligence.
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This article was originally published on GOBankingRates.com: How to Create a Budget Using ChatGPT: A Step-by-Step Guide
