by Artificial Intelligence (AI) is the latest technology which became popular after the launch of ChatGPT in November, 2022. Since then, people have used AI for several purposes, including financial growth. Most AI models use advanced algorithms that can analyse individual:
- Spending patterns
- Financial habits
- Income sources
Based on this analysis, these tools provide a personalised financial guide that matches a person’s risk appetite. Such a tailored response leads to better financial choices. Moreover, by using AI, you can do smart wealth management as AI tools can track your savings and investments.
Do you also want to benefit from affordable AI models and achieve financial growth? In this article, let’s see seven ways you can use AI and improve your financial position.
1. Make better investment decisions
If you don’t have financial expertise, there are high chances that you might pick the wrong investment schemes. Using AI, you can analyse vast amounts of financial data, such as:
- Stock prices
- Market trends
- Company performance
Through such an analysis, you can become aware of the best investment opportunities. Several AI-powered investment tools assess your risk tolerance and recommend stocks and mutual funds that fit your financial goals.
Moreover, these tools can also detect hidden patterns in the market that humans might miss. Please note that AI continuously learns from market fluctuations. It can alert you when to buy, hold, or sell investments. This maximises your returns.
2. Predict your cash flow
AI can analyse your past:
- Income
- Expenses
- Financial habits
Based on this analysis, it can predict your future cash flow. Using this information, you can identify periods when you may have extra savings or likely cash shortages.
For example,
- Say an AI model notices that your spending increases during festive seasons. Now, it may suggest saving extra in advance.
- Similarly, if you are a freelancer with irregular income, AI can forecast slow months and advise saving accordingly.
When you get such a clear picture of your financial future, you can avoid financial struggles and plan better for major expenses like vacations or home purchases.
3. Manage investment risks
Every investment carries risk. By using affordable AI models, you can minimise it. Most such models continuously monitor your investments and alert you about possible dangers.
For example,
- Say a company you have invested in is facing financial trouble. Now, AI can detect early warning signs and suggest reducing your exposure.
- It can also track economic events (such as inflation or interest rate hikes) that might affect your investments.
Furthermore, AI ensures you diversify your portfolio and do not put all your money into one risky asset. By providing risk assessments and real-time alerts, AI acts like a 24/7 personal financial watchdog.
4. Automate budgeting and savings
Keeping a track of expenses manually can be difficult, but AI-powered budgeting apps make it easy. These tools analyse your spending habits and automatically categorise transactions into different sections like:
- Food
- Rent
- Shopping
- Travel
As time passes by, AI learns your spending patterns and suggests ways to save money. For example, say you are overspending on shopping. Now, an AI model can alert you when you cross your budget.
Furthermore, AI can also automate savings by transferring small amounts into a savings account. Some models even round up your purchases and invest the extra change.
5. Understand market trends and news
Financial markets are influenced by many factors, such as:
- Global events
- Company earnings
- Social media trends
Using AI, you can scan thousands of news sources and financial reports. Instead of reading lengthy reports manually, AI summarises key points so you can quickly make quality decisions. Moreover, you can even analyse stock market data in real time.
For example,
- Assume that a major company announced a new product. Now, AI can predict its likely impact on stock prices.
- Similarly, AI detects social media trends that might affect cryptocurrency prices.
By using AI models, you can stay ahead of the market and achieve financial growth.
6. Real-time financial alerts
AI-powered financial apps provide instant notifications on important financial changes. For example:
- If your bank account shows unusual spending activity, AI alerts you to likely fraud.
- If the stock market drops suddenly, AI warns you so you can take action.
Furthermore, using affordable AI models you can also set alerts for specific financial goals. For example, AI can notify you when a stock you want reaches a certain price. This feature is useful for investors who don’t have time to monitor the market constantly.
7. Personalised investment advice
Instead of hiring an expensive financial advisor, you can use AI models to get personalised investment strategies. These platforms analyse your:
- Financial situation
- Income
- Goals
- Risk tolerance
Based on this analysis, they create a customised investment plan. Additionally, as your financial situation changes, AI automatically adjusts your portfolio. For example,
- Say you receive a salary hike. Now, AI may suggest increasing your investments in higher-return assets. If market conditions change, AI rebalances your portfolio. To maintain an optimal risk level, it suggests that you invest in FDs from stable NBFCs.
Such automation ensures that your money is always working for you, even when you are not actively managing your investments.
Conclusion
Nowadays, several investors are using affordable AI models to improve personal finance. Some practical use cases are:
- Getting personalised investment strategies
- Managing investment risks
- Automating budgeting and savings
- Obtaining real-time financial alerts
Furthermore, by using AI models, you can track your cash flow and analyse the latest market trends. When used smartly, these models eliminate the need for hiring a financial advisor. That’s because they continuously learn and ensure that your money is working for you at all times. To start using these AI models, you can purchase the latest gadgets and devices from popular online marketplace at steep discounts.
