Powerful AI Tools Can Help You Run Your Personal Finances

Artificial Intelligence is taking over every aspect of our lives, but should you be relying on it when it comes to the really important stuff, like running your personal finances?

The short answer is no. The longer, more nuanced answer is that there are powerful AI tools that can really help in the personal finances space. In fact, AI is probably already a big part of your financial life and you’re probably already using it on a daily basis without really thinking about it.

There are many areas where AI is already all up in your finances, and it’s almost certainly making your life easier. Here are a few of the areas where AI can be of use in the personal finance space.

Budgeting

If you’re still sitting down with a pen and paper to work out your monthly budget, then you’re probably in the minority. AI based budgeting apps like Mint and You Need A Budget are a common way that many of us are now using AI in our personal financial lives without really thinking about it as AI.

Most of these apps link to your bank account, and then use AI to do things like categorize transactions, analyze spending patterns and even make budgeting suggestions, often delivered by a chat bot acting as a friendly financial advisor who resides in your phone.

There are also apps like Tend, which uses AI to predict your future spending, and Pocket Guard, an AI powered tool that can help you calculate your net worth, devise a debt repayment plan, improve your spending decisions, and even find unused subscriptions you might want to cancel.

Investing

Robo-investing is nothing new. It’s been on the radar of most regular investors for much longer than AI has been a buzz word in the mainstream news.

Platforms like Vanguard and Fidelity Go use AI to build their clients’ portfolios, based on their stated goals and risk tolerance, and optimized for tax efficiency.

Copy trading platforms like eToro and AvaTrade use AI to allow less experienced traders to follow and copy the trades of other more successful and experienced investors, without having to use their own brains to monitor the markets or make trading decisions.

Many investors also use tools like Magnifi, an AI powered platform that links to your brokerage and helps you find new, personalized-by-AI investment opportunities you might otherwise have overlooked.

Improving Habits

I’m a fan of using AI tools, such as the built-in habit tracker that comes with Notion, to build, track, and improve all my habits, including those related to personal finance.

Using specifically finance-focused tools can be even better. Tend, for example, can use AI based analysis to study your income, expenses, debts, and goals to produce a score of your financial wellness, and then offer you advice on the habits you need to cultivate to improve that score. Loqbox is a tool that specifically hones in on the habits you need to build credit and improve your credit score.

So Is AI Powered Advice All You Need?

In my opinion, no. I’m a big fan of keeping your own very human brain fully engaged with your financial planning, and consulting professionals about more complex decisions. Please don’t go replacing your human financial advisor, estate planner, or tax consultant fully with AI options right now.

With personal finance, as with so many aspects of twenty-first century life, the trick is to learn to use the AI tools to your advantage, while still understanding how they work, so you can feel in control of your finances but supported by the technology.

Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen