Day 28 – AI For Personal Finance And Investing – 30 Day AI Challenge 2024

Welcome to the 2024 Edition of the #30DayAIChallenge. This year, we’ll be focusing on making Generative AI more accessible for all. So follow along and give each challenge a try yourself, plus share your own thoughts and experiments with a community of like-minded learners and tinkerers!*

Week 4’s theme is “Back To The Future: Living With AI“, which takes on an AI infused lifestyle…or everyday AI use cases that can make our lives a little easier or better.

The Power of AI for Personal Finance and Investing

Today, managing money and investing is not like it used to be. Thanks to technology, there are lots of new ways to handle your cash and grow your savings. On Day 28 of our challenge, we’re going to show you how AI can change the game for your wallet. Whether you’re trying to keep a better eye on how much you spend or make the most out of your investments, AI has a bunch of tools that can help everyone, from beginners to pros.

Getting Started – Personal Finance Basics With AI

For those new to AI’s applications in personal finance, starting with user-friendly AI chatbots like ChatGPT, Google Gemini, Claude and others can be a game changer. Here are a few simple ways you can leverage these tools, including everyday challenges to try out…

1. Financial Habit Formation: Use an AI chatbot as an accountability buddy to form better financial habits. For example, set a challenge to review your spending manually every evening, and discuss your observations and feelings about that spending with the chatbot. This can help identify areas to improve.
2. Learning Financial Concepts: Challenge yourself to learn a new financial concept daily or weekly with the help of an AI chatbot. Ask the chatbot to explain terms like compound interest, inflation, or how stock markets work, and discuss these concepts to deepen your understanding.
3. Financial Decision Role-Play: Engage in role-play scenarios with an AI chatbot where you’re faced with different financial decisions, such as choosing between paying off debt or saving. The chatbot can provide insights into the pros and cons of each choice without needing to track actual numbers.
4. Creating a Financial Vision Board: Use an AI chatbot to help you articulate your financial goals and dreams, then create a vision board. This could involve discussing what financial freedom means to you, your long-term financial goals, and what steps you might need to take to achieve them.
5. Understanding and Improving Your Money Mindset: Have daily conversations with an AI chatbot about your attitudes and beliefs around money. This can uncover deep-seated beliefs that might be holding you back from achieving your financial goals.
6. Savings Challenge Ideas: Ask the chatbot for creative ways to save money that don’t require tracking exact amounts. This could include implementing no-spend days, finding free entertainment options, or DIY projects to save on costs.
7. Exploring Side Hustles: Discuss with an AI chatbot potential side hustles or passive income ideas. The chatbot can provide information on what these might entail, helping you explore options that align with your interests and skills.
8. Eco-Friendly Budgeting Tips: Challenge yourself to reduce your environmental footprint while saving money, with suggestions from an AI chatbot. This could involve tips on reducing energy consumption, minimizing waste, and making sustainable shopping choices.

Here’s an example from last year’s 30 Day AI Challenge, where I used a combination of AI tools to create a free eBook on Money, for Kids:

Day 17 of 30 Day AI Challenge – A Kids Guide To Money, a free eBook co-created with AI

More Advanced Techniques for the Seasoned Investor

For those with a bit more experience under their belts, tapping into custom GPTs and ChatGPT’s Data Analyst features can open up new dimensions in personal finance and investing. Here’s how:

• Custom GPTs for Personalized Advice: Create or utilize custom GPTs tailored to your specific financial situation and goals. These can provide more nuanced advice on saving and investing. For example, I created a custom GPT called “Warren”, that is inspired by Warren Buffet and Benjamin Graham…it knows my goals and is designed to provide responses with a Value Investing mindset.

There are also plenty of other custom GPTs created by other people and companies…the best of these usually tap into external databases and tools to give you the best value, i.e. combining the LLM / AI Chatbot with domain specific knowledge.

• Data Analysis for Investment Opportunities: Use ChatGPT’s Data Analyst capabilities to interpret complex financial reports, market trends, and investment risks. This can help in making more informed decisions or even come up with (or sense check) a plan. Remember to use these tools to augment your own common sense, experience and professional advice though.

It’s essential to approach these advanced tools with a mindset geared towards continuous learning and adaptability. As AI technologies evolve, so too will the strategies for maximizing their benefits in personal finance and investing.

A Note of Caution

While AI offers remarkable tools for personal finance and investing, it’s crucial to remember that these technologies should not be considered as a substitute for professional financial advice. Always assess your own situation, risk appetite, and consult a financial advisor for more serious use cases, especially when it comes to investing.

Looking Ahead: The Future of AI in Personal Finance

As we look to the future, the possibilities of AI in personal finance and investing are boundless. From more accurate predictive models for market trends to personalized financial planning that considers an individual’s entire financial picture, AI is set to make financial wisdom more accessible to everyone. As the tech evolves (and with the right mindset), so too will our ability to manage our finances more effectively and make more informed investment decisions.

If you give any of these tools or challenges a try, leave a comment and share your experience! If you’re using other platforms to post, please tag your Facebook, Twitter / X or LinkedIn post with #30DayAIChallenge so others can find it too.

Till tomorrow…

*Please note: Participation in the 30 Day AI Challenge is at your own discretion and responsibility. Always ensure that no sensitive personal information, confidential, or proprietary company data is shared. Adhere to all applicable local laws and company policies. Enjoy exploring AI responsibly!