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Let's face it: Financial success isn't just about making money. it's about being smart about it.
But with the temptation to buy anything anywhere, anytime (yes, we're talking about you, Amazon), it can feel like a full-time job. But what if I told you that there was a secret weapon that could simplify your financial life and help you achieve your goals faster? It's not a magic wand, a good luck charm or some superstitious ritual; It is actually (as you guessed) artificial intelligence (AI).
AI is revolutionizing the way we handle our finances, turning complex tasks into simple ones and opening up possibilities we never thought possible. To be clear, the idea is not to have a robot manage all your finances. It's about having the latest technology to help you make decisions about money matters, using advanced calculations, data and other strategies in a way that is very convenient for you.
So are you ready to see how AI can help you manage your personal finances? Let's talk more about it!
Note: Although these are general suggestions, it is important to conduct thorough research and due diligence when selecting AI tools. We do not endorse or promote any of the specific AI tools mentioned here.
Table of contents
AI tools for budgeting and expense tracking
Managing a budget manually can be a daunting task. But with AI-driven tools, budgeting has become more intuitive and automated.
How AI automates budgeting
AI algorithms can now categorize expenses, predict spending habits, and even suggest ways to save. For example, you can track how much you spend on dining out or entertainment and notify you when you go over your budget.
A report suggested this Spending on AI systems reached nearly $118 billion in 2022with expectations that are exceeded 300 billion dollars in the coming years
Popular AI budgeting tools
Here are some popular apps that use AI for budgeting, along with their features and pricing:
| App name | Summary | Prices |
|---|---|---|
| mint | Automatically categorizes transactions and provides insights into spending behavior. | Free |
| You need a budget (YNAB) | Helps you keep track of every dollar and prioritize long-term financial health. | $11.99/month |
| Cleo | A chatbot-based app that offers personalized tips on saving and managing finances. | Free basic version; $5/month for premium features |
| Rocket money | Analyzes spending habits and predicts future expenses to help users stick to their budget. | Free basic equipment; $6.99/month for premium features |
| PocketGuard | Shows how much disposable income remains after accounting for bills and savings. | $3.99/month |
Benefits of AI in budgeting
By automating these tasks, AI tools save time, reduce the risk of overspending, and help you understand where your money is going. Instead of manually entering each expense, users receive real-time updates and actionable insights into their financial situation.
For example:
- mint: Users can link their bank accounts to Mint, which automatically categorizes transactions. This feature helps users visualize their spending patterns and adjust accordingly.
- YNAB: This app encourages users to assign a purpose to every dollar, encouraging a proactive approach to budgeting that can lead to significant savings over time.
- Cleo: The chatbot interface allows users to ask questions about their finances at any time, making financial management feel more accessible.
AI for debt management and credit scoring
Debt can be overwhelming, but AI is making strides to help people manage their debt more effectively. With the advent of AI-powered platforms, individuals now have access to tools to analyze their financial situation, recommend consolidation options, and improve their credit score.
Debt consolidation and management tools
AI-powered platforms like Ottopay and Chime analyze your debt, recommend the best consolidation options, and even negotiate better interest rates on your behalf. These tools provide a holistic view of your debt and create personalized strategies to pay it off faster.
Improve your credit score with AI
Your credit score is crucial to securing loans and favorable interest rates. AI tools like Credit Karma and Experian Boost analyze your spending and payment habits and provide personalized recommendations to improve your score. According to a report by Experian, users who actively use Experian Boost can see an average improvement in their credit score 13 points.
Other examples are:
- Credit karma: Many users have successfully improved their credit score by following the app's actionable insights.
Popular AI tools for debt management
Here is a table summarizing some notable AI tools for debt management:
| App name | Summary | Prices |
|---|---|---|
| chimes | Offers features like automatic savings and early direct deposit to make managing your finances easier. | Free |
| Credit karma | Offers free credit scores and personalized recommendations to improve credit. | Free |
| Experian Boost | Allows users to add utility and phone bill payments to their credit report to improve their score. | Free |
| Ottopay | An AI debt manager that provides recommendations on how to allocate monthly budgets for optimal payments. | Free basic equipment; Premium subscription based on user selection |
AI-powered financial education and planning
AI not only helps you manage money, but also shows you how to manage it better. From chatbots that offer personalized advice to AI tools that create tailored financial plans, technology is revolutionizing the way we approach personal finance.
Chatbots and virtual assistants for financial advice
AI-powered chatbots like Erica from Bank of America and Eva from HDFC Bank provide 24/7 support, answer your financial questions, give advice and help you understand your spending habits. The banking industry is currently experiencing significant change Integration of AI-powered chatbotswhich are becoming increasingly important for improving customer interactions and operational efficiency.
AI tools for personalized financial plans
For long-term goals like retirement or estate planning, AI tools can create detailed, personalized financial plans. Platforms like Personal Capital offer a mix of AI and human advisors to help you plan for the future and keep your financial goals top of mind. This is what a study by Accenture found 77% of consumers are more likely to contact their financial service provider if they offer individual advice.
Other examples are:
- Erica: Bank of America's AI assistant has done it 10 million customer inquiries since its launch in 2018, highlighting the need for personalized financial advice.
Popular AI-powered financial education apps
Here is a table highlighting some notable apps that use AI for financial education and planning:
| App name | Summary | Prices |
|---|---|---|
| RoosterMoney | Helps parents teach their children about money management through an allowance system and educational content. | Free basic equipment; $3/month for premium features |
| Beanstox | Offers automated investing with an emphasis on financial education and goal setting. | $3/month for accounts under $10,000 |
| Green light | Offers debit cards for kids with parental controls and educational resources on money management. | $4.99/month for up to 5 children |
| Capital city | Helps users save money to achieve their goals by setting rules and challenges. Contains educational content. | Free basic equipment; $3-$12/month for premium features |
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Artificial intelligence is revolutionizing personal finance, making it easier, more efficient and more accessible than ever before. From AI-powered budgeting apps to credit scoring, the potential benefits are immense. Whether you want to get out of debt or just keep track of your spending, AI tools provide the insights and automation you need to take control of your financial future.
Subscribe to our newsletter for exclusive insights, tips and the latest AI tools to help you stay in control of your finances. Plus, access our free AI resource site for curated recommendations and tutorials.
We have more updates to AI tools to help you manage money better. Stay up to date! As always, let's make it happen.
Disclaimer: The information provided here is based on available public data and may not be entirely accurate or current. It is recommended to contact the respective companies/individuals for detailed information on features, pricing and availability.
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Peter Kim, MD, is the founder of Passive Income MD, creator of the Passive Real Estate Academy, and offers weekly training through his Monday podcast, the Passive Income MD Podcast. Join our community in the Passive Income Doc Facebook Group.
Further reading
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
