27 hours of research later I’m ready to share the results of my scoutings. You're welcome.
Hi, I’m Julie, an editor at code.market. I’m in my mid-twenties and I just want to enjoy my earnings, but life doesn’t work that way. So, because I’m frustrated with all the media noise and in your face advices, I took an easy route and decided to try out AI, because all the ‘cool dudes’ on the internet push do it. So let me be your experimental ground, from which I report if these ‘easy’ tools are actually efficient and do not leave you even more confused with your personal finances.
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Budgeting and expense tracking
Im privileged to have a stable income which covers my key expenses like rent and food, bills and other basics. But I struggle to keep a track of what's left after these monthly payments, and wanted to find tools to do exactly this. I was in need of an intelligent calculator, basically.
In the beginning, I had a simple, goal: find a service that will act as an entry door to the habit of budgeting. These worked for me:
Mint is an AI-powered budgeting app designed to assist users in tracking their spending, setting budgets, and receiving alerts for unusual transactions. By linking all financial accounts, Mint provides a comprehensive view of financial health, facilitating easier financial management.
YNAB (You Need A Budget) leverages AI to cultivate better budgeting habits among users. It encourages proactive planning and provides insights into spending patterns, thereby helping users allocate funds more effectively. The app’s AI-driven recommendations d me quite well can help you find smarter financial decisions, short and long-term.
Investment management
I would lie if I said that I am enlightened and financially secured enough to invest at this point in my life. But I can totally see how it's a reality for someone else, so here are tools that I found had good reviews from other real users.
Betterment stands out as an AI-driven investment platform offering personalized investment advice and portfolio management. Its algorithms optimize investments based on individual goals and risk tolerance, ensuring maximum returns.
Wealthfront provides automated investment management and financial planning using AI algorithms. Wealthfront assists in creating diversified portfolios, rebalancing them as necessary, and employs tax-efficient strategies to streamline investment management.
Savings and debt management
After having been on track, I decided to explore what else I could automate besides simple budgeting. And, turns out, it was straight up my alley: managing savings is exactly the weakness realized I have after first couple of weeks of testing. I used these three services:
Qapital utilizes AI to aid users in saving money by setting personalized savings goals and automating the savings process. It offers various savings rules, such as rounding up purchases and saving the difference, thereby simplifying the process of building a savings habit. Make sure it’s compatible with your other apps and practices!
Digit is an AI-powered app that analyzes spending habits and automatically saves small amounts of money for users. It helps in paying off debt and saving for future goals effortlessly, eliminating the need for manual transfers and planning. A bit of tackling and it works like magic
Fina Money is a customizable financial tracking tool that helps users manage their personal finances through tailored categories and flexible budgeting options. It caters to both individuals and financial professionals with various pricing plans.
It’s quite common that a native app of your bank is also packed with savings management tools, separate accounts for that purpose, etc. The toughest part for me was to get in the habit of actual management, and I delegated it all to AI-powered solutions. My only concern so far is cybersecurity of it all, but that can be solved by researching the founders and reading privacy policy and agreements you have to sign.
Financial planning
These were useful for me to plan out gifts and small trips to nearby regions. I also surprisingly didn't want to end it all after a Cancer season with 5 of my friends having b-days in July.
Personal Capital integrates AI with human financial advisors to offer comprehensive financial planning services. It conducts a detailed analysis of financial situation, including investment management, retirement planning, and wealth management.
FutureAdvisor provides AI-driven financial planning and investment management services. It offers personalized advice, portfolio management, and tools for retirement planning, assisting users in achieving their long-term financial objectives. This one is my favorite so far!
Addressing Risks and Challenges of AI in Personal Finance
While AI tools offer significant benefits, they also present certain risks, exactly what I’ve been concerned with throughout this while experiment. For the love of whoever you see as your higher deity, fact-check these points in your own before engaging in any activity. My experience can definitely be different from yours, but generally I'd suggest to give your attention to:
Data privacy and security: Ensuring the AI tools you use have robust security measures and clear privacy policies is crucial to safeguarding your financial information.
Over-reliance on AI: While AI recommendations are valuable, it's important to maintain a balanced approach and make informed decisions based on personal financial knowledge and circumstances.
Accuracy and reliability of AI predictions: AI tools operate on algorithms and data, which may not always be infallible. Regularly reviewing and adjusting your financial strategies based on real-world changes is essential.
Julie’s Tips for Integrating AI in Personal Finance Management
If you can read only one part of the text, let it be this one.
- Setting Financial Goals: Define clear financial goals, such as saving for a house or building an emergency fund. AI tools can track progress and keep you motivated.
- Regular monitoring and adjusting: I’m sorry (for myself too), but it turned out to actually be the key. Stay proactive by regularly monitoring your financial status and adjusting your strategies accordingly. AI tools provide insights, but your active involvement ensures your financial goals are met effectively.
- Educating yourself on AI tools: Keep track of the latest AI tools and understand how they can enhance your financial management. Knowing their functionalities and limitations helps in utilizing them more effectively.
Conclusion
For a couple weeks, I’ve been experimenting with AI tools to help me manage my finances. Of course, I did not become suddly richer or more successful, but the best outcome is the relief I feel. Getting into the habit of tracking finances and debts, diversifying the funds across savings and cash and, of most importance, the ability to have a glimps of control over money is s great outcome.
By thoughtfully integrating these tools into your financial strategies, you can simplify the complexities of money management and achieve your financial goals efficiently. The worst thing is always to start, and then it’s just a matter of habit. Whether you're budgeting, investing, saving, or planning for the future, AI-powered solutions can significantly enhance your financial well-being. So good luck, and I hope this text was useful for you all.
