How artificial intelligence can make managing your money easier

What is artificial intelligence and how can it make managing your money easier?

Artificial intelligence, or AI, is a technology able to learn from data. Simply put, it analyzes your habits and draws conclusions to help you make better decisions.

You probably already use AI without even knowing: when your phone suggests a better route to avoid traffic or when Netflix recommends a series you might like, artificial intelligence is at work.

When it comes to personal finances, the same logic applies. AI suggests potential ways of saving and planning better, but you choose what you want to do.

Artificial intelligence tools for managing your budget

1. Track spending seamlessly

   You don’t have the time or patience to enter every purchase in an Excel table? Fortunately, some bank apps can do it for you.

   With AI, your transactions are automatically classified into categories, such as groceries, gas or leisure activities. It takes just a few seconds to see where your money’s going.

   For instance, if you notice that your to-go coffees are costing $80 a month, the app may suggest that you make coffee at home several times a week. It’s a small change that can have a big long-term impact!

2. Create a realistic budget that’s easy to stick to

   It can be daunting to set up a budget, especially when the numbers don’t add up. But AI streamlines the task and creates a personalized budget based on your income and your expenses in the blink of an eye.

   Additionally, if your salary changes or your electricity bill goes up, some apps automatically adjust your projections. No more complicated formulas: you get a clear picture that’s always up to date.

3. Save without even thinking

   You would like to save money, but there’s almost never anything left at the end of the month? Some saving tools use AI to set aside small amounts, without any effort on your part.

   Some apps can round up each purchase and transfer the difference to a savings account. If you spend $3.60 on a coffee, $0.40 automatically goes into your savings account.
   It may seem insignificant, but over a year it can add up to several hundreds of dollars.

4. Get personalized financial advice

   An increasing number of financial tools now provide a “virtual assistant” that acts as a sort of digital advisor. It can send you alerts about upcoming payments, help you avoid interest costs or even remind you of your goals.

   For instance, your app may notice that you’re paying a lot of interest on a credit card (which you should avoid at all costs!) and suggest that you pay it off first. Or it may encourage you to transfer a small amount into your savings before the end of the month. Basically, it acts a bit as a financial coach, there when you need it!

Yes to AI, but you are still the one who decides!

Artificial intelligence is more than a practical tool, it can really change your relationship with money. It helps you better understand your own habits and take concrete action at your own pace. However, it must be used wisely. AI can complement your efforts, but it does not replace your judgment or the advice of a professional.

In summary, AI can be a valuable ally to help manage your money, but it can never replace the understanding and support you get from a real person. At Raymond Chabot, our advisors are there to help you understand the situation and develop a realistic plan to regain financial stability. Don’t hesitate to contact us today!