How can AI help manage your personal finances?
- Aarav Jhaveri
- Jun 10
- 4 min read
By Aarav Jhaveri
As society advances artificial intelligence (AI) is reshaping nearly every aspect of our lives. From the way we speak to one another to the way we listen to music, AI provides faster and more reliable options. For example Spotify uses AI to provide recommended songs based on your personal music taste. One major area of everyone's life where AI is making an impact is personal finance. Whether you are investing in the stock market, creating a budgeting plan, or even planning your retirement, AI can help make the process more efficient. But let's get more specific and figure out how AI can help your financial necessities.
Smart Budgeting and Expense Tracking
Creating and managing a smart budget plan is one of the most difficult aspects of personal finance. It's not only about tracking your finances and what you are spending but also staying on top of what you spend and making adjustments accordingly. But how can AI help?
Using apps such as Rocket Money and You Need a Budget (YNAB) which use AI to help analyze your spending pattern and will send you alerts of when you are reaching your spending limit. Many apps use AI to offer specialized advice to allow you to cut back on unnecessary expenses. AI makes managing your budget so much faster and easier than ever allowing you to save time for doing the things you truly love.
Investment Platforms
When starting, investing can be intimidating. There are options left and right, one stock after another, which ones do you choose? This is where AI can help. Financial AI helpers also known as Robo-Advisors, Robo-Advisor is a digital platform that provides algorithm-driven financial planning. These investment services have little to none human intervention. Numerous apps offer these services such as Wealthfront or Robinhood. These services offer a completely AI driven portfolio that will personally adjust your investments, financial strategy, and Robo-Advisors will provide tax efficient investment strategies personalized for you. AI driven investment platforms offer a passive income source. AI driven platforms offer a smart and easy solution to investing.
Maintaining financial security
A large part of managing your money is making sure that your financial data is well protected. As AI continues to advance more and more ways to acquire someone's financial data appears. On the other hand AI’s advancement means that we can develop more efficient methods to protect one's financial data. One market research firm noted that the finance sector was the second greatest target for data attacks. This means taking the precautions to help protect your financial data is key. AI can help in numerous ways such as email threat detection, predictive analysis, and many more ways. Apps such as Aura, LifeLock, and more offer an AI driven way of protecting your finances. For people looking for a better, faster, and more efficient way of protecting your money consider using AI.
Managing your debt appropriately
AI can be a major benefactor when it comes to managing your money. Apps that use AI tools will allow you to manage your money. For example, Mint allows you to track your money and provide AI planning to make sure you budget your money. Many other apps offer similar features such as Tally. Tally offers smart banking, automated accounting, and many other features that allows one to have all of their finances fully managed by AI. AI can also offer advice to help all aspects of finance, even your credit score. Apps such as Dovly offer tips and tricks to help manage and improve your credit score. AI is able to manage, track, and give tips on your financial behavior.
Predicting your financials
AI does a lot more than simply managing your current finances. AI has the ability to predict your finances based on your behavior patterns. It can notice a certain trend that may be losing you a lot of money and will advise you to cut that trend off. Looking past fixing your mistakes AI can even help prep for your entire future all the way to helping your retirement planning. Odoo is an app that predicts financial trends that will be beneficial to you. It also provides financial consolidation that allows you to get financial tips that manage your future money. More than just your bank account apps such as SAPS allows you to use AI to help model your business plan and adjust based on current events. AI is extremely flexible and is a wonderful tool that can allow you to set up your future.
Automated savings
AI can be extremely helpful when it comes to helping save money efficiently. Saving money on your own can be very difficult especially when you have numerous financial commitments. Apps such as Rocket Money or Wally are financial saving apps that allow for autonomous savings through artificial intelligence to help give advice on your spending habits and can transfer money directly to a savings account automatically. These tools can calculate how much money you can put into your savings account so that you don’t have to worry about saving manually anymore. Ai can determine financial patterns and help advise you about the appropriate amount of money you should save on a regular basis. Over time AI can help build a significant amount of savings.
Personalized financial advice
Financial advisors are expensive and not everyone has access to professional advice. AI provides better, more efficient, and personal advice tailored to individual financial situations. Many AI driven platforms analyze your financial past and financial goals that will provide more elaborate personal financial advice. Platforms like Cleo act as personalized financial assistants. They answer questions, help budget appropriately, and provide financial recommendations based on your prior finance. AI driven finance advisors allow one to set and provide realistic financial goals. These AI driven finance advisors also provide insight into your saving habits.
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