July 18, 2024

The Rise of AI in Personal Finance Management

5 min read

There is no doubt that artificial intelligence is making the world a better place however, some people will argue differently. Nevertheless, it has been proven to help people with many different things and one of those is money management. AI tech has advanced the finance industry for both personal and professional matters. Many individuals now rely on this technology to help control their money and spend it in better areas. 

There are numerous things that AI can be used to help you with your money. For example, people require it to help them budget for the month. Other people will use AI to influence their investment decisions. It has proven to be beneficial for those who struggle to manage their money. 

Let’s take a more in-depth view of how artificial intelligence is improving personal money management and how you can use it to benefit you. 

 

The Forefront For Finance Management

If you are someone who struggles with managing your money, you have likely looked at many blogs on how you can improve your money management skills. You have also tried numerous apps and spreadsheets where you can track your expenses however, this has proven to not have worked. It can be stressful when you are living paycheck to paycheck. Nevertheless, there are apps out there that make it much easier. 

Wally is one of the leading apps in money management and uses AI to help control your finances. Additionally, using this tool will do all the hard work for you. It will help with categorising your expenses, track your income streams and tell you when to save. You don’t need to worry about this app being too technical as they have an in-app chatbot that can answer all your queries. 

Another reason why people use these apps is because they want to be able to track and improve their credit scores. They can also help you manage your debts and make it easier to pay them off. Some online banks will even use AI to provide you with the best debt advisor to help pay off your debts. 

AI simplifies things, especially when it comes to money management. Whether you wish to increase your wealth or pay off debts, you can be certain that AI will help you with it. 

 

Provides Investment Advice

There is no doubt that investing is much better than saving however, the investment world can be overwhelming. There is a lot to learn and sometimes, you don’t have the time for it. That is why AI is great because it can provide you with the investment advice you need to grow your wealth. It simplifies everything to help impact your investment decisions for the better. 

Robo-advisory investment apps are used all over the world. Then help you control your investments with just a few clicks of a button. Furthermore, these robo-advisory investment apps are available 24/7 so whenever you need assistance, these apps will be able to help you. 

Some robo-advisory investment apps will personalise your advice to suit your goals. This includes diversifying your portfolio to make your investments safer and it will cost very little to do this. Using AI can personalise your investments to achieve your goals and can adapt to make sure you are on track with your goals. 

With the use of II, you can also understand the potential outcomes and see the future of your wealth more clearly. AI is intelligent and uses simulations for a variety of different financial decisions. 

We understand that you don’t want to put all of your wealth in the hands of a robo-advisory app and you don’t need to. Instead, you can use hybrid investment apps that combine humans and AI to help dictate where your investments go. Yes, AI is capable of reading and understanding mass amounts of data however a human can understand the investor’s feelings which can be more beneficial when investing, this leads to further personalisation of your investments. 

 

Improved Forecasting and Predictability 

AI is great at many things however one thing that can be missed is that it is great for businesses as well. AI will simulate different financial scenarios to support strategic planning and help reduce risk management. It can predict the future income of a company and cash flow. This will allow the business to budget for the future. 

Something else that AI is being used for is to predict liquidity based on previous data which will ensure they have the correct amount to give to borrowers. A good example would be JP Morgan. They use AI to help predict the future of their cash flow plus, will use it to monitor transactional data. 

 

Helps Improve Financial Access

One of the other benefits of using AI is that it provides many people around the world with financial data. These AI-based financial apps can offer the user with many banking services such as setting up direct debits and creating savings pots. All they need to do is enter their password and they can instantly access their financial information, whether that is the money they have available or their investments. 

Another benefit is that AI is capable of analysing your credit score. This will help with bill repayments and can also provide access to different types of loans. Getting a loan can be difficult but with the use of these apps. It makes it much easier. 

You should always look to expand your knowledge with money because it will only benefit you in the future. That is why it is a good idea to read up on articles, studies and blogs to help improve your knowledge. Luckily for you, AI can do this. AI can tailor the education needs depending on your spending habits and financial goals. 

 

To Conclude

There is no doubt that AI has improved many aspects of personal money management. It has also made the world a better place and offers more access than ever before to many individuals. AI is capable of many things and if you need to save money in a short space of time to pay your MOT or save for dental implants in Melbourne, AI can do that for you.

 If you want to grow your wealth even more then investing is the right choice however, using AI can help you maximise your profits, especially if you have never invested before. There is a lot to learn in the investment world but with the use of robo-advisory apps, it is made easy. It can also provide you with sources to expand your knowledge which is exactly what you need if you want to improve your money management skills.

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