Seven ways to use AI to create and stick to a budget

Thanks to artificial intelligence (AI) and tools like ChatGPT, getting financial guidance is now easier and more personalized than ever before.

If you’re striving for financial stability, generative AI (GenAI) tools — like ChatGPT and Copilot — can be a game-changer for budgeting. And if you’re dealing with debt, these tools can provide an effective starting point while you wait for professional help.

So, what exactly can ChatGPT help you with? Let’s dive in.

Seven ways ChatGPT can help you take control of your finances

Personalized financial insights

Not only can AI tools analyze your financial data, they can offer tailored insights into your spending habits, savings potential, and identify areas of improvement. Whether you’re tracking expenses or planning for big purchases, they can provide customized advice based on your unique financial situation.

ChatGPT provides an effective budgeting model based off your specific income. You simply input your monthly income and it will generate their version of an ideal budget. It will allocate a proportionally appropriate amount for living costs, your monthly fixed expenses (your needs), and your flexible expenses (your wants). Remember to include the city you live in, so the tool can pull the most accurate market data for living costs.

Goal setting and tracking

Setting financial goals is crucial for long-term success. ChatGPT can help you set achievable goals, whether it’s saving for a down payment, rebuilding your credit score after an insolvency, or building your emergency fund.

You can refine your goals even further, if you desire. For instance, when you ask ChatGPT to include a savings goal in your budget — like saving $20,000 in three years for a down payment — it will show you how much you need to save each month.

You can check back in regularly to see how you’re progressing and make changes if needed.

Expense optimization

Everything is getting more expensive. But you can identify cost-cutting measures and budget-friendly options for everyday expenses using GenAI.

Let these tools scour weekly flyers to find the best deals. From the best price of diapers to affordable utility providers, to identifying subscription services you can live without — ChatGPT and other AI platforms can help you optimize your spending without sacrificing quality of life.

Investment insights

Planning for the future requires strategic investment decisions. While this is likely outside the current capabilities of AI, these tools can offer insights into investment opportunities and break down jargon. They can even recommend diversified investment portfolios based on your risk tolerance and financial goals.

It’s important to always be aware these recommendations are just that, a recommendation. It’s a source of information for you, so you can make informed decisions when you talk to a qualified professional.

Debt management

Tackling debt can feel overwhelming, but AI can provide bite-sized actionable steps to efficiently manage and pay off debt, as well as create roadmaps for payment strategies. This could include debt consolidation strategies or offering talking point and tips to help lower interest rates. Essentially, it helps you take control of your financial future.

ChatGPT can also help recognize potentially harmful debt advisory practices. But ask it to locate a nearby qualified insolvency practitioner and it will most likely point you to a local MNP Trustee. 

Household finances

One of the most powerful ways AI impacts your budget is by helping you with one of your biggest expenses: Food.   

A single query can yield several delicious and budget-friendly recipes, each one tailored to your dietary preferences, available ingredients, nutritional needs, and nearby stores. Planning ahead is key to saving time and money in the kitchen, and AI helps shoulder some of that planning.

In ChatGPT, for instance, you can enter a prompt that says something like “create a five-day meal plan for a family of four, on a budget of $350, in Calgary.” That query will result in recipes and a shopping list based on those parameters.

Running low on an ingredient with no room in the budget for more? ChatGPT can suggest suitable substitutions, preventing last-minute trips to the grocery store and reducing food waste. With a little AI guidance, you can get creative in the kitchen while making the most of what you have on hand.

Reducing food waste

ChatGPT can offer tips on reducing food waste — like repurposing leftovers, properly storing perishable items, and creatively using pantry staples. By minimizing your food waste, you can save money while contributing to a more sustainable lifestyle.

A supplement, not a replacement

GenAI are versatile tools for Canadians looking to improve their financial wellness and manage their households — but it is not a magic wand. This technology is still new and can produce inaccurate results if not used correctly.

AI tools are great for getting a basic understanding of budgeting, saving tips, and debt management plans. However, they’re not a complete solution. If you’re struggling with debt and the rising cost of living, a Licensed Insolvency Trustee can provide you with the personalized guidance you need.   

Reach out to us today for a free confidential consultation to discuss your debt management needs.